THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION No : 4265 of 2005 O R D E R: This Writ Petition has been instituted by a former employee of M/s Praga Tools Limited, a Government of India enterprise, seeking a writ of mandamus for declaring the action of the respondent in withholding the medical reimbursement claim made by him as arbitrary and illegal and consequently, to direct the respondent M/s Praga Tools Limited to settle his claim in a sum of Rs.2,69,040/- with interest at 12% thereon. The writ petitioner served the respondent M/s Praga Tools Limited for considerable length of time and retired on voluntary basis on 31.05.2003 while working as a Senior Assistant with the said company. While he was in service of the respondent, his son fell sick and ultimately, when he was admitted to Nizams Institute of Medical Sciences (NIMS), his son was diagnosed to be suffering from “acute lymphoblastic leukemia”. His son was advised to undergo chemo therapy for a period of at least 18 months. Accordingly, the petitioner has arranged for the treatment of his son. The petitioner claims to have spent a sum of Rs.1,38,097/- towards medical expenses and other incidental charges during the period his son was hospitalized at NIMS. The petitioner thereafter took his son to All India Institute of Medical Sciences at New Delhi for securing bone morrow transplantation therapy. He had claimed to have spent a little more than Rs.2,69,000/- towards the hospitalization charges and other medical expenses for securing treatment to his son. In spite of that medical attention which the writ petitioner secured, he could not save the life of his son, who ultimately, succumbed to the disease on 16.08.2001. After having overcome the trauma, the writ petitioner has submitted a representation to the respondent on 11.03.2003, claiming hospitalization charges of Rs.2,69,040/- to be reimbursed to him. Since the said claim has not been attended to, in spite of being satisfied that the writ petitioner did actually incur the said expenditure on account of the treatment meted out to his son, the present Writ Petition has been instituted. The Assistant General Manager (Human Resources) of M/s Praga Tools Limited has filed a counter-affidavit on behalf of the respondent company. It is brought out in the said counter affidavit that since M/s Praga Tools Limited was running with acute losses since 1990-91 and as its net worth was completely eroded, the said company sought for a reference to be made to the Board for Industrial Financial Reconstruction (BIFR), in terms of Sick Industrial Companies (Special Provisions) Act, 1985. Upon consideration of the matter, the BIFR, by its proceedings, dated 10.05.1999, appointed the Industrial Development Bank of India, Bombay as an operating agency. The operating agency in turn appointed a technical consultant for preparation of a report for its revival. It was also pointed out that the company sold Ac.2.00 of its land to Central Public Works Department and Ac.1.08 cents of land to National Thermal Power Corporation and that the Government of India lent support by sanctioning a non plan bridge loan of Rs.4 crores for meeting the emergency requirement of paying the salaries/wages to its employees. It was also pointed out that M/s Praga Tools Limited was due and payable an amount of Rs.11.25 crores as on 30.09.2003, representing the statutory dues alone. Apart from the above, there are several other non-statutory dues and liabilities running into several crores payable. In this financial distressful conditions of the company, the company has taken certain austerity measures for limiting or pruning its financial commitments. It has also introduced a voluntary retirement scheme and approximately 1600 employees have been relieved under the said scheme. It was also pointed out that the Ministry of Heavy Industries, Government of India has moved file for securing approval for closure of the respondent company from the Union cabinet. One of the measures adopted for pruning the expenditure was to limit the medical reimbursement facility, which was available when the affairs of the company were satisfactorily going on. It has been brought out in paragraph 9 of the counter-affidavit specifically that a total of more than Rs.9,99,000/- was pending towards hospitalization reimbursement claims alone. In those set of circumstances, it is sought to be pleaded that the claim of the writ petitioner for reimbursing him Rs.2,69,040/- cannot be ordered. Sri P. Nageswara Sree, learned Standing Counsel for the respondent company, during the course of his submissions, pointed out to me that as of now, another public sector undertaking of the Government of India, namely Hindustan Machine Tools (HMT) has taken over M/s Praga Tools Limited, to make it as one of its own divisions. In view of this development, I requested Sri P. Nageswara Sree to use his good offices for securing some kind of reimbursement, in view of the genuineness of the claim relating to the writ petitioner’s son’s treatment. Sri Nageswara Sree could persuade M/s Hindustan Machine Tools, which, in turn, has proposed to pay a sum of Rs.67,260/-, working out approximately to 25% of his claim amount. Accordingly, a pay order drawn on State Bank of Hyderabad in favour of the writ petitioner, in a sum of Rs.67,260/- is produced in the Court today, which the writ petitioner, though reluctantly, accepted, without prejudice to any of his rights. This amount is ordered to be paid to the writ petitioner so as to provide some immediate help and assistance to him to tide over the financial crisis narrated by him, which was brought forth all because of the unfortunate disease suffered by his dependent son for whose treatment the writ petitioner had to incur huge expenditure. In the peculiar fact situation prevailing in this case, it is represented by Sri P. Nageswara Sree, that the claim filed by the petitioner containing the bills attached thereto is not immediately traceable, but however, he assures that no efforts would be spared to trace the same and in case, the said claim is traced and M/s Hindustan Machine Tools decides to reimburse the medical expenditure claims of the former employees of M/s Praga Tools Limited, I have no doubt in my mind that the same treatment will be meted out to the writ petitioner also. The writ petitioner is also granted liberty to secure either duplicate or photo copies of the original bills, which form part of the claim made by him on 11.03.2003 and submit the same to the officer of M/s Hindustan Machine Tools, in charge of the affairs of M/s Praga Tools Limited. Leaving liberty to both sides to workout their remedies, the present Writ Petition is disposed of recording the payment of Rs.67,260/- made as an exception in the case of the petitioner by the HMT. The bankers cheque produced by Sri P. Nageswara Sree, learned counsel for the respondent in the Court today is handed over to the writ petitioner, who is present in the Court. No costs. ---------------------------------- Nooty Ramamohana Rao, J 31st March 2011 ksld ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{TRK}