Financial losses caused to State Exchequer are to be recovered from Public Servants: Madras HC

Financial losses caused to State Exchequer are to be recovered from Public Servants: Madras HC

On December 23, the Madras High Court's single judge bench, Justice SM Subramaniam, ruled that anytime a public employee's carelessness results in a loss to the State Exchequer, the financial loss should be recovered from them. 

“The financial loss made to the State Exchequer by Public Officials' negligence, failures, or dereliction of duty is to be recovered from such Public Servants, who are all responsible and accountable for the financial losses.”

The bench was hearing a civil revision petition to set aside the attachment order issued by the Sub Court attaching the moveables in the revision office, which was brought by the district collector and dean of the Government Medical College Hospital, Thiruvarur.

2015 saw the filing of a medical malpractice lawsuit by a lady against the hospital after an incorrect surgery left her completely blind. She was awarded Rs. 5 lakh in compensation by the Sub Court in Thiruvarur after successfully demonstrating negligence. The hospital was instructed to pay the compensation amount within three months. 

She then started a petition for her execution. Five years later, in September 2022, the Execution Court issued an order tying up the moving parts in the revision petitioners' office. The top court heard a challenge to the order. 

The petitioners for the amendment argued primarily that the public institution would experience difficulties as a result of the attachment order.

The victim cannot be forced to chase after money that was already granted by the trial court in 2016 for compensation, the court said. Additionally, it stated that if the revision petitioners believed they had a stronger case, they should have taken the proper action as soon as possible.

" Now after a lapse of about six years from the date of decree, if a lenient view is taken by this Court, then the same will result in an injustice to the medical victim, who lost both her eyes and became blind totally on account of the surgery conducted in the Government Medical College Hospital at Thiruvarur."

Noting that the financial loss caused to the State Exchequer by acts of negligence, failures, or dereliction of duty committed by public officials must be recovered by such public officers.

"In the present case, the State has to pay the compensation amount and thereafter recover the same amount from the Doctors and the Officials, who have committed an act of medical negligence, administrative lapses or dereliction of duty. The financial loss to the public is to be recovered proportionately by fixing the responsibility amongst all the officials, who have committed an act of administrative lapses, negligence and dereliction of duty. In this regard, the revision petitioners are bound to conduct an enquiry and initiate all appropriate action following the Service Rules, which all are applicable."

"... on such deposit, the Execution Court can disburse the said compensation decree amount to the respondent-plaintiff on or before 30.01.2023. In the event of failure on the part of the revision petitioners to deposit the decree amount to the respondent on or before 10.01.2023, the Execution Court shall proceed for the attachment of the properties as per the order dated 29.09.2022. The order of attachment dated 29.09.2022 is kept in abeyance till 10.01.2023," it added.

Case Title: The Dean, Government Medical College Hospital and another v. Vijayalakshmi
Case No: CRP SR No.146353 of 2022

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