SRINAGAR: The High Court of Jammu Kashmir and Ladakh has refused to provide relief to the State Health Agency (SHA) concerning the termination of the contract by IFFCO–TOKIO General Insurance Company for the implementation of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), The Excelsior reported.
The court based its decision on the grounds that an insurance contract is not specifically enforceable under Section 14 of the Specific Relief Act. Additionally, it stated that a party cannot seek specific performance of the contract through a Section 9 petition under the Arbitration and Conciliation Act.
The bench of Justice Wasim Sadiq Nargal, observed that specific performance of determinable contracts is barred under Section 14 of Specific Relief Act, with a necessary corollary, even injunction is barred to be granted under Section 41(e) of the Specific Relief Act, 1963 wherever the contract is not specifically enforceable.
The insurance contract between the State Health Agency (SHA) and IFFCO-TOKIO General Insurance Company Limited was set for a maximum of three years starting from March 10, 2022 and would have lasted until March 14, 2025. However, IFFCO TOKIO, through a letter expressed their lack of interest in renewing the contract beyond its expiry on March 14, 2024, citing Clause 9.1c of the March 10, 2022 contract agreement.
In response to the communication of the company, the Chief Executive Officer, State Health Agency, requested them to continue as insurer in terms of the Memorandum of Understanding (MoU) signed between the parties. The General Manager of the company, in response to this request, informed the CEO, SHA that they have decided not to accord their consent for the renewal of the contract beyond March 14, 2024.
Subsequently, there were multiple correspondence exchanges between the SHA and the company. Later, SHA filed petition under Section 9 of the Arbitration and Conciliation Act seeking interim protection from the High Court. It was prayed that company be directed to continue the contract up to 14.03.2025 in the interest of patient care and public at large.
After hearing Senior Additional Advocate General Mohsin S Qadri along with Maha Majeed, Assisting Counsel for the Government, Justice Wasim Sadiq Nargal observed, “as per the amended Section 10 of the Specific Relief Act, the courts no longer have discretionary powers under the Specific Relief Act while granting such a relief”.
