The Court of Financial Commissioner stayed the cancellation order issued by the Directorate General of Health Services (DGHS) till the next hearing, January 9, according to its order, a copy of which has been accessed by the PTI.
The hospital group had on December 13 filed an appeal in the Financial Commissioner's court against the cancellation of the licence of its hospital in north west Delhi by the DGHS of the city government.
"The operation of impugned order is stayed till the next date of hearing. Fixed for arguments on provision of Section 8 (2) & 8 (4) of the Act (Delhi Nursing Home Registration Act, 1953)," the Financial Commissioner has said in the order.
The petitioner's lawyers submitted before the Court of Financial Commissioner that under the provisions of the said act, no such orders shall come into force until after the expiration of a calendar month from the date on which it was made or where notice of appeal is given against it, until the appeal has been decided or withdrawn.
According to the Financial Commissioner's order, the counsel for the DGHS submitted that the cancellation order was passed under Section 7 and not Section 8 (2) of the Act.
Section 7 of the act says the supervising authority may at any time cancel the registration of a person in respect of any nursing home on any ground which would entitle it to refuse an application for the registration of that person in respect of that home.
Or on the ground that the person has been convicted of an offence under this act or that any other person has been convicted of such an offence in respect of that home.
The DGHS of the Delhi government's health department had cancelled licence of the hospital for multiple instances of alleged medical negligence, including a case in which one of the twins was found alive after being declared dead by the facility.
Earlier in the day, Max Healthcare issued a statement, claiming, "Max Hospital, Shalimar Bagh has resumed its operations from today, following a stay order issued by the appropriate appellate authority to whom an appeal was made."
The licence cancellation case pertains to the premature twins, one of whom was wrongly declared dead on November 30 at the hospital where he was born, and who died during treatment at a nursing home in Pitampura a week later.
Both the babies were declared stillborn by the hospital and handed over to the family allegedly in a polythene bag.
But to their utter horror, they found that the boy was still alive, while they were on way to do their final rites.