Delhi HC To Hear Anil Nanda's Plea In Escorts Status

Delhi HC To Hear Anil Nanda's Plea In Escorts Status 1/17/2009 The Delhi High Court agreed to hear the plea of industrialist Anil Nanda against turning the Delhi-based Escorts Heart Institute & Research Centre Limited (EHIRCL) into a limited company from a charitable institution. Justices Mukul Mudgal and Manmohan set aside the order passed by single judge bench of the High Court on July 3, 2008 and restored the suit for hearing on merits. A single bench of the court, in July last year allowed the plea of Rajan Nanda, Anil’s elder brother and the former chairman of Escorts Hospital, to convert the hospital into a company, which was challenged by his brother. Anil Nanda sought restoration of the institute to its original status of a charitable trust, but his plea could not be entertained as he had not sought permission of the court before filing the suit as provided in the Civil Procedure Code. Anil’s lawyer Mr S Ganesh contended that the Escorts is a purely a charitable society founded by late H P Nanda in 1981 for the benefit of the poor. As the land was allotted at concessional rates, it cannot be converted into a limited company to earn profits as it is contrary to the Societies Registration Act, he said. He further stated that it should be ensured that the charitable society should engage itself in charitable works only and that its funds and contributions are not fraudulently diverted for private benefits. The single judge bench had earlier dismissed Anil Nanda’s contention on technical grounds but the Court today allowed the hearing of the first appeal and said the matter shall be decided on merits by the concerned judge. UNI

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