[COVID-19] Kerala High Court issues notice in State Govt appeal against stay on cap of RT-PCR price

The Kerala High Court on Wednesday issued notice on the Kerala government's appeal against a single-judge order of the High Court which had allowed a plea challenging the government's decision to cap the rate chargeable for RT-PCR tests at ₹500 (State of Kerala v. Accredited Molecular Testing Laboratories)..A Division Bench of Chief Justice S Manikumar and Justice Shaji P Chaly admitted the appeal and issued notice to the respondents by speed post..On October 4, single judge Justice TR Ravi had kept in abeyance, a Government Order reducing the price of RT-PCR tests from ₹1,700 to ₹500 in private diagnostic labs in the State.The Court had directed the government to take a fresh decision, within a period of three weeks, regarding the rate at which the RT-PCR tests shall be conducted by the private laboratories in the State after discussing the matter with the owners or representative of such private laboratories. .The single-judge had passed the order on a batch of petitions that had challenged the GO on the ground that the decision to cap the price at ₹500 was taken without any consultation with the stakeholders. The petitioners, represented by Senior Advocate P Raveendran had contended that the State government has no power to issue an order fixing rate for tests in private labs.Moreover, they pointed out that the price for the test was fixed as a result of the directions issued by the Indian Council of Medical Research (ICMR) pursuant to the judgement of the Supreme Court in Shashank Deo Sudhi v. Union of India & Ors.The top court had said that private laboratories can continue to charge for testing of Covid-19 from persons who can make payment of the testing fee as fixed by ICMR.Subsequently, the ICMR issued a directive that governments can cap the price of Covid tests after consulting with private laboratories within the state.Therefore, it was argued the State was obliged to discuss the matter with private laboratories.If that had been done, the private laboratories could have shown data on the actual costs incurred by them, they contended.Therefore they challenged the GO as having been issued in violation of the directives of the Supreme Court and ICMR, without jurisdiction and in violation of principles of natural justice..The State Government, represented by Advocate General Gopalakrishna Kurup, had argued that the cost of kits and consumables have drastically come down and that the price fixed by it is at par with that of other states in the country. .However, the single-judge found merit in the arguments of the petitioners and stayed the GO and directed the State to arrive at a new rate after deliberations with all stakeholders, including the private laboratories."The State was obliged to discuss the matter with private laboratories. The GO issued without conducting a discussion with the private laboratories and that too in a matter in which they are seriously affected cannot be legally sustained," the order of the single judge stated..This decision has now been appealed by the State Government before the Division Bench.The matter will be taken up again after three weeks. Read about the previous order of the Court here.