CHENNAI: The Madras High Court on Monday permitted the Sri Kanchi Kamakoti Peetam Charitable Trust to encash the Earnest Money Deposit of Global Hospitals for Rs.25.7 crore and complete the sale of the hospital at Permbakam in terms of the advertisement.

In their order, Chief Justice A.P.Shah and Justice K. Mohanram said at the request of counsel appearing for Shriram Properties, its earnest money deposit should be returned to its counsel.

Only two bidders, namely Shriram Properties, Chennai, and Ms. Global Hospitals, Secunderabad, were left in the fray.

The offer of Global Hospitals was put at Rs. 257 crore, subject to undertakings given in the affidavit, including running the existing hospital situated on an 18-acre land, retaining the employees and providing 50 free beds.

Several queries

Shriram Properties' offer was Rs.265 crore but it was not willing to take the employees and provide free beds.

Shriram Properties had also raised several questions in their affidavit.

During the hearing, Abdukumar Rajaratinam, counsel for Shriram Properties, submitted they would like to improve the offer to Rs.270 crore and were prepared to give the same undertakings as given by Global Hospitals.

Tie-up with Manipal Hospitals

It was further stated that though they had no expertise in health care, they would tie up with Manipal Hospitals, which had shown interest in a joint venture for running the hospital.

It was, however, stated that they were not in a position to run the existing hospital, which now catered to the needs of people living in 47 villages in the hospital's neighbourhood.

"Heavily indebted"

T.R. Rajagopalan, counsel appearing for the trustee, submitted that the trust was formed with an objective of providing charitable medical services, apart from medical education. Unfortunately, it could not run the hospital and had become heavily indebted. The medical college could not be established. Therefore, it was compelled to sell the property.

He submitted that the trustees were interested in keeping the present hospital functional as a medical hub for the villages in its neighbouring area.

He submitted that the conditions put forth by Shriram Properties were totally unacceptable. One of them was that the property was to be ultimately transferred to M/s Juventus Bundwell Pvt.Ltd., an infrastructure company created by Shriram Properties.

On the other hand, the main objective of Global Hospitals was to provide total health care and it had experience in running hospitals.

Mr. Rajagopalan said although the offer of Global Hospitals was less than that of Shriram Properties, the trustees were keen on fulfilling the objectives of the trust in running the hospital.

Bank dues

Counsel pointed out that Global Hospitals contemplated settlement of the bank dues by May 15, 2007 and the remaining amount by June 2007.

Mr. Rajagopalan submitted that the trust would accept the offer of Global Hospitals.

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