Fortis Hiranandani gets Supreme Court Stay on NMMC termination of Contract

NAVI MUMBAI: Fortis Hiranandani has received a stay from the Supreme court on the order of Navi Mumbai Municipal Corporation, that terminated the contract between the two parties.

Medical Dialogues team had earlier reported that the Navi Mumbai Municipal Corporation had terminated its agreement with Hiranandani Healthcare Pvt Ltd (HHPL) through an order issued by the authority. The corporation had asked the healthcare facility to hand over the two floors that it currently occupies within the NMMC hospital in Vashi, in a month's time. Instructions have also been given to HHPL  to stop admitting new patients from the date of order.

Read more at Medical Dialogues: Fortis, Hiranandani asked to Vacate Navi Mumbai Facility by NMMC 

The main reason identified for the termination included

• Failure to operate a purely super-specialty hospital,


• Indirect transfer and assignment of obligation and duties to Fortis Healthcare Ltd and displaying the name `Fortis' instead of `Hiranandani' hospital at vantage points.


• NMMC had entered into an agreement with Hiranandani Healthcare in 2006 for super specialty facilities as it didn't have the expertise to provide the same. Accordingly, the fourth and fifth floors of the NMMC hospital building in Vashi were decided to be used for the purpose. However, HHPL sub-let the property to Fortis, without the civic body's consent.

Following the incident, Fortis Hiranandani filed a writ petition as well as a special leave petition in the SC. The SC order issuing a stay order on the NMMC termination has stated that a status quo shall be maintained until the hearing. The purpose is to give all the parties concerned put forward their points
A press release from FORTIS confirmed the same stating

"In response to a Special Leave Petition and Writ Petition by Hiranandani Healthcare Pvt. Limited following an order by the Navi Mumbai Municipal Corporation dated 18/01/2017, the Hon'ble Supreme Court of India has granted HPPL 'status quo'. Fortis Hiranandani Hospital, Vashi, remains operational as before and we continue to stand by our patients as strong, supportive and compassionate caregivers. We strictly adhere to all medical and ethical codes of conduct, while complying with regulatory requirements in spirit as well as conduct. We continue to abide by our legal obligations and deny any non-compliance or breach of agreement(s). The matter is subjudice"