(Quashing of Criminal Proceedings in Medical Billing and Records Dispute)
Indian Penal Code, 1860: Sections 405 (Criminal Breach of Trust), 420 (Cheating), 120B (Criminal Conspiracy), 504 (Intentional insult with intent to provoke breach of the peace) - Code of Criminal Procedure, 1973: Section 482 (Inherent powers of High Court) - West Bengal Clinical Establishments (Registration, Regulation and Transparency) Act, 2017: Sections 29 (Minor and major deficiencies), 34 (Offences and punishments), 35 (Adjudicating Authority), 36 (Regulatory Commission).
A complaint was filed against a hospital and its personnel alleging inflated billing for an unperformed test, non-supply of medical records, and improper behaviour, leading to a Magistrate’s summoning order under IPC Sections 405, 420, 120B, and Section 34 of the 2017 Act. The High Court set aside the summoning order but remanded the matter for reconsideration of territorial jurisdiction, while making a passing comment that an offence was prima facie made out (specifically Section 504 IPC for two individuals).
The Supreme Court found no prima facie case for criminal breach of trust (Section 405 IPC) or cheating (Section 420 IPC), as the billing discrepancy was an inadvertence with an offered refund, not dishonest intention or deception from the outset. Consequently, the criminal conspiracy charge (Section 120B IPC) was unsustainable.