Medical Services Rendered Free of Cost by Military Hospitals Not a ‘Service’ Under Consumer Protection Act; NCDRC Dismisses Complaint as Not Maintainable
Sangeetha Prathap
The National Consumer Disputes Redressal Commission (NCDRC) has held that medical services provided by Military Hospitals to armed forces personnel and their dependents are rendered entirely free of charge and therefore do not fall within the ambit of “service” under Section 2(42) of the Consumer Protection Act, 2019. On this ground alone, the Commission dismissed the complaint filed by Smt. Sarabjeet Kaur alleging medical negligence during her pregnancy at the Military Hospital, Jalandhar Cantt.
The complaint alleged that the attending radiologists failed to conduct essential prenatal diagnostic tests and screenings during pregnancy, resulting in the birth of the child with severe congenital deformities. The complainant sought compensation for the trauma, negligence and long-term medical expenses alleged to have arisen from the doctors’ omissions. However, before examining the allegations on merits, the Commission restricted the hearing to the question of maintainability and directed the complainant to demonstrate whether there existed any form of monetary consideration, statutory contribution, or payment — direct or indirect — for availing medical services at the Military Hospital. The complainant admitted that no such evidence existed.
The Bench noted that Military Hospitals provide treatment completely free of charge to serving personnel and their dependents and do not operate on a contributory or insurance-based structure. Relying on the three-judge decision of the Supreme Court in Indian Medical Association v. V.P. Shantha (1995), the Commission reiterated that medical services rendered entirely free of charge are outside the purview of the Consumer Protection Act. The Commission emphasised that, unlike government hospitals where free treatment may be subsidised indirectly by taxes or where both paying and non-paying classes coexist, Military Hospitals render services free to all beneficiaries without any contributory mechanism and therefore cannot be treated as “service providers” under the Act.
The Commission further noted that several Supreme Court decisions, including those cited by the complainant’s counsel, do not dilute the binding ratio of V.P. Shantha in respect of institutions rendering only free services. It clarified that the later decision in Ashish Kumar Chauhan — which involved army personnel — was decided on an alternative constitutional basis under Articles 32 and 142 and did not override the position of law on the Consumer Protection Act.
Having concluded that the complainant did not fall within the definition of “consumer” and the Military Hospital did not fall within the scope of “service” under Section 2(42), the NCDRC held that the complaint was not maintainable. It therefore dismissed the complaint while granting liberty to the complainant to pursue any remedy available before an appropriate forum.
Cause Title: Smt. Sarabjeet Kaur vs. Military Hospital, Jalandhar Cantt. & Ors.
Case No: Diary Case No. NC/DN/80/2025
Coram: Hon'ble Mr. Justice A. P. Sahi (President), Hon'ble Mr. Bharatkumar Pandya (Member)
