20 August 2015
Supreme Court
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ROYAL MEDICAL TRUST (REGD) Vs UNION OF INDIA & ANR

Bench: ANIL R. DAVE,VIKRAMAJIT SEN,UDAY UMESH LALIT
Case number: W.P.(C) No.-000705-000705 / 2014
Diary number: 24315 / 2014
Advocates: LAWYER S KNIT & CO Vs


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1 REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

Writ Petition (C) No. 705/2014  

Royal Medical Trust (Regd) and Another. ……Petitioners.

Versus

Union of India and Another.   …. Respondents

WITH

W.P.(C) No.700 of 2014, W.P.(C) No.707 of 2014, W.P.(C) No.784 of 2014,  W.P.(C)  No.862  of  2014,  W.P.(C)  No.523  of  2014,  W.P.(C) No.799 of 2014, W.P.(C) No.819 of 2014,  

AND

C.A. No.  6481          of 2015 @ SLP(C) No.21765 of 2014,  C.A. No.  6482          of 2015@ SLP (C) No.22755 of 2014,  C.A. No.  6483        of 2015@ SLP (C) No.22756 of 2014,  C.A. No.  6484          of 2015 @ SLP(C) No. 22757 of 2014 C.A. No.  6485        of 2015 @ SLP(C) No.22974 of 2014,  C.A. No.  6486        of 2015 @ SLP(C) No.23512 of 2014,  C.A. Nos. 6488-6489 of 2015 @ SLP(C) Nos.23528-29 of 2014,  C.A. No.  6492        of 2015 @ SLP(C) No.23476 of 2014,  C.A. Nos. 6493-6494 of 2015 @ SLP(C) Nos.24150-51 of 2014,  C.A. No.  6509        of 2015 @ SLP(C) No.24154 of 2014,  C.A. No.  6495        of 2015 @ SLP(C) No.24665 of 2014,  C.A. No.  6496          of 2015 @ SLP(C) No.24913 of 2014,  C.A. No.  6497        of 2015 @ SLP(C) No.25763 of 2014,  C.A. No.  6498        of 2015 @ SLP(C) No.21517 of 2014,  C.A. Nos. 6499-6500 of 2015 @ SLP(C) Nos.26296-97 of 2014,  C.A. Nos.  6503-6504         of 2015 @ SLP(C) Nos.26768-69 of 2014,

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2 C.A. Nos.  6505-6506         of 2015 @ SLP(C) Nos.24754-55 of 2014,  C.A. Nos.   6507-6508        of 2015 @ SLP(C) Nos.25468-69 of 2014,  C.A. Nos.  6501-6502         of 2015 @ SLP(C) Nos.26758-59 of 2014,  SLP(C) No.22785 of 2014,   SLP(C) No.27034 of 2014 AND  Transfer Petition (C) No.1217 of 2014

J U D G M E N T

Uday Umesh Lalit J.

1.  These petitions (except SLP(C) Nos.22785 of 2014 and 27034

of  2014)  arise  out  of  communications  issued  by  the  Central

Government recommending disapproval of applications preferred in

respect of Medical Colleges of the applicants for the academic year

2014-2015.  In  these  petitions,  after  conducting  inspection  of  the

respective Medical Colleges the Medical Council of India (MCI for

short)  had  found  infirmities  or  inadequacies  in  the  infrastructure,

facilities and faculty. The respective applicants then claimed that they

had rectified the shortcomings and asked for compliance verification.

But the Central Government and/or the MCI refused to undertake any

fresh inspection for verification, for want of adequate time. This being

the common feature in all these petitions, they were heard together

and are being disposed by this common judgment.

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3 2.  Broadly the categories of Medical Colleges presently before the

Court are:-    (I)   Cases  where  new  Medical  Colleges  are  sought  to  be

established  for  the  first  time  and  where  such  colleges  are

seeking  appropriate  permission  to  admit  students  to  the  first

year of  MBBS course namely:-  (1) WP(C) No.700/2014,       (2)  WP(C) No.705/2014

(3) WP(C) No.819/2014     (4) SLP(C) No.22757/2014

(5) SLP(C) No.22756/2014   (6) SLP(C) No. 24913/2014

(7) SLP (C) No. 23512/2014.  The Respondent  in this

petition has also preferred Transfer Petition (C) No.1217

of  2014 to have  his  writ  petition pending in  the High

Court of Bombay to be transferred to this Court.

(II)  Cases where the existing approved Medical Colleges are

seeking increase in intake of seats for admissions of students to

the first year of MBBS Course namely:  (1) WP(C) No.523/2014       (2) WP(C) No.707/2014  (3) WP(C) No.862/2014.  

(III)  Medical  Colleges  seeking  renewal  of  permission,   who

have already received permission in the previous year(s) either

for establishing  new Medical College or for increasing intake

capacity of the existing Medical College.  In this category of

cases, the renewal for subsequent batches and for permission to

admit students to the first year course is sought namely:

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(1)   WP(C) No.784/2014        (2) WP(C) No.799/2014   (3)   SLP(C) No.21517/2014   (4) SLP(C) No.21765/2014  (5)   SLP(C) No.22755/2014   (6) SLP(C) No.26758-59/2014   (7)   SLP(C) No.23476/2014   (8) SLP(C) No.23528-29/2014  (9)   SLP(C) No.24154/2014   (10) SLP(C) Nos.24150-51/2014  (11) SLP(C) No.24665/2014   (12) SLP(C) No.24754-55/2014  (13) SLP(C)No.25763/2014    (14)  SLP(C) No. 25468-69/2014 (15) SLP(C)No.22974 /2014   (16) SLP(C) Nos.26296-97 /2014 and (17)  SLP(C) Nos.26768-69/2014.

3. Reduction in seats in a Dental College is challenged in Special

Leave  Petition  (C)  No.22785  of  2014.    This  being  a  completely

distinct  matter,  is  de-tagged  and  it  be  listed  before  an  appropriate

Bench.  Further SLP(C) No.27034 of 2014 is filed in public interest

by an individual claiming that as on 23.09.2014 about 76 seats were

lying vacant in different colleges in Jharkhand.  No separate orders are

called for in this petition and it be taken to be disposed of in the light

of our discussion hereinafter.

STATUTORY PROVISIONS

4.  The  statutory  provisions  concerning  permission  for

establishment of new Medical College and for increase in intake are to

be found in Section 10A of the Indian Medical  Council  Act,  1956

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5 (hereinafter referred to as the Act) and the Regulations framed under

the Act.  Said Section 10A is as under:-  

“10A. PERMISSION FOR ESTABLISHMENT OF  NEW MEDICAL COLLEGE, NEW COURSE OF  STUDY ETC.

1.  Notwithstanding anything contained in this Act or any other law for the time being in force:-  

(a)  no person shall establish a medical college (b)  no medical college shall:-  (i) open a new or higher course of study or training (including  a  postgraduate  course  of  study  or training)  which  would  enable  a  student  of  such course or training to qualify himself for the award of any recognised medical qualification; or

(ii) increase its admission capacity in any course of study or training (including a postgraduate course of study or training),  except with the previous permission of the Central Government  obtained  in  accordance  with  the provisions of this section.  

Explanation 1 - For the purposes of this section,  "person" includes any University or a trust but  does not include the Central Government.

Explanation 2 - For the purposes of this section "admission capacity" in relation to any course of study or training (including postgraduate course of study or training) in a medical college, means the maximum number of students that may be fixed by the Council from time to time for being admitted to such course or training.

2. (a)  Every person or medical college shall, for the purpose  of  obtaining permission under  sub-section  (1),

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6 submit  to  the  Central  Government  a  Scheme  in accordance  with  the  provisions  of  clause  (b)  and  the Central  Government  shall  refer  the  Scheme  to  the Council for its recommendations.

(b). The Scheme referred to in clause (a) shall be in such form and contain such particulars and be preferred in  such  manner  and be  accompanied  with  such fee  as may be prescribed.  

3.  On  receipt  of  a  Scheme  by  the  Council  under sub-section  (2)  the  Council  may  obtain  such  other particulars as may be considered necessary by it from the person or the medical college concerned, and thereafter, it may -  

(a)  if the Scheme is defective and does not contain any  necessary  particulars,  give  a  reasonable opportunity to the person or college concerned for making  a  written  representation  and  it  shall  be open to such person or medical college to rectify the defects, if any, specified by the Council.

(b)  consider  the  Scheme,  having  regard  to  the factors referred to in sub-section (7) and submit the Scheme together with its recommendations thereon to the Central Government.  

4.  The  Central  Govt.  may  after  considering  the Scheme and the recommendations of the Council under sub-section (3) and after obtaining, where necessary, such other particulars  as  may be considered necessary  by it from the person or college concerned, and having regard to  the  factors  referred  to  in  sub-section  (7),  either approve (with such conditions, if any, as it may consider necessary)  or  disapprove  the  Scheme,  and  any  such approval shall be a permission under sub-section (1):

Provided that no Scheme shall be disapproved by the Central Government except after giving the person or

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7 college  concerned  a  reasonable  opportunity  of  being heard;

Provided further  that  nothing in  this  sub section shall  prevent  any  person  or  medical  college  whose Scheme  has  not  been  approved  by  the  Central Government to submit a fresh Scheme and the provisions of  this  section  shall  apply  to  such  Scheme,  as  if  such Scheme  has  been  submitted  for  the  first  time  under sub-section (1).

5. Where, within a period of one year from the date of submission of the Scheme to the Central Government under  sub-section  (1),  no  order  passed  by  the  Central Government  has  been  communicated  to  the  person  or college  submitting  the  Scheme,  such  Scheme  shall  be deemed  to  have  been  approved  by  the  Central Government in the form in which it had been submitted, and  accordingly,  the  permission  of  the  Central Government required under sub-section (1) shall also be deemed to have been granted.

6.  In  computing  the  time-limit  specified  in sub-section (5), the time taken by the person or college concerned  submitting  the  Scheme,  in  furnishing  any particulars called for by the Council,  or by the Central Government, shall be excluded.

7. The Council,  while  making its  recommendations under  clause  (b)  of  sub-section  (3)  and  the  Central Government, while passing an order, either approving or disapproving  the  Scheme  under  sub-section  (4),  shall have due regard to the following factors, namely:-  

(a)  whether  the  proposed medical  college or  the existing medical college seeking to open a new or higher course of study or training, would be in a position to offer the minimum standards of medical education  as  prescribed  by  the  Council  under

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8 section 19A or, as the case may be under section 20 in the case of postgraduate medical education.

(b)  whether  the  person  seeking  to  establish  a medical  college  or  the  existing  medical  college seeking to open a new or higher course of study or training or  to  increase  it  admission  capacity  has adequate financial resources;

(c)  whether necessary facilities in respect of staff, equipment,  accommodation,  training  and  other facilities  to  ensure  proper  functioning  of  the medical college or conducting the new course or study or training or accommodating the increased admission capacity, have been provided or would be provided within the time-limit specified in the Scheme.

(d)  whether  adequate  hospital  facilities,  having regard to the number or students likely to attend such medical college or course of study or training or as a result of the increased admission capacity, have been provided or would be provided within the time-limit specified in the Scheme;

(e)  whether  any  arrangement  has  been  made  or programme  drawn  to  impart  proper  training  to students  likely to attend such medical  college or course of study or training by persons having the recognised medical qualifications;

(f)  the  requirement  of  manpower  in  the  field  of practice of medicine;  

(g) and any other factors as may be prescribed.

8. Where  the  Central  Government  passes  an  order either  approving  or  disapproving  a  Scheme  under  this section, a copy of the order shall be communicated to the person or college concerned.”

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5.  Section  10A  contemplates  submission  of  a  Scheme  to  the

Central Government in prescribed form, which Scheme is then to be

referred by the Central  Government to the MCI for  its  appropriate

recommendations. The Scheme is to be considered having regard to

the features referred to in Sub-Section 7 and is then placed before the

Central Government along with the recommendations of the MCI. In

exercise of powers conferred by Section 10A read with Section 33 of

the  Act,  the  MCI  with  the  previous  sanction  of  the  Central

Government  has  made  “Establishment  of  the  Medical  College

Regulations, 1999”  (hereinafter referred to as the Regulations) which

were published in the Gazette of India on 28.8.1999. Paragraph 3 of

the Regulations lays down that  no person shall  establish a medical

college  except  after  obtaining  prior  permission  of  the  Central

Government by submitting a Scheme. The Regulations then deal with

the  Scheme in  extenso.  Clauses  1  and 2  of  the  Scheme deal  with

‘Eligibility Criteria’ and ‘Qualifying Criteria’ respectively. Clause 3

then sets out certain requirement in Parts (i), (ii) and (iii) concerning

various  details  about  the  status  of  the  applicant  in  terms  of  the

eligibility criteria, name and address of the Medical College including

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10 various facets of the infrastructure and planning and the details of the

existing  hospital  including  availability  of  various  facilities  and

capacities as also upgradation and expansion programme.

6. Paragraph 7 of the Regulations deals with report of the MCI

while  Para  8  deals  with  grant  of  permission  by  the  Central

Government. Paragraphs 7 and 8 of the Regulations are as under:-

“7.   REPORT OF THE  MEDICAL COUNCIL OF INDIA:

(a)  After examining the application and after conducting necessary  physical     inspections,  the Medical  Council  shall  send  to  the  Central  Government  a  factual  report stating –

1. that  the applicant  fulfils  the eligibility and qualifying criteria.

2. that the person has a feasible and time bound programme to set up the proposed medical college alongwith  required  infrastructural  facilities including  adequate  hostels  facilities  separate  for boys and girls, and as prescribed by the Council, commensurate  with  the  proposed  intake  of students,  so  as  to  complete  the  medical  college within a period of four years from the date of grant of permission;

3.   that the person has a feasible and time bound expansion programme to provide additional  beds and infrastructural facilities,  as prescribed by the Medical Council of India, by way of upgradation of the existing hospital or by way of establishment of  new  hospital  or  both  and  further  that  the

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11 existing hospital as adequate clinical material for starting 1st year course.

4.   that  the person has the necessary managerial and financial capabilities to establish and maintain the  proposed  medical  college  and  its  ancillary facilities including a teaching hospital.

5.  that the applicant has a feasible and  time bound programme for recruitment of faculty and staff as per prescribed norms of the Council and that the necessary posts stand created.

6.   that the applicant has appointed staff for the 1st year as per   MCI norms.

7.  that the applicant has not admitted any students.

8.  Deficiencies,  if  any,  in  the  infrastructure  or faculty  shall  be  pointed  out  indicating  whether these are remediable or not.

(b) The  recommendation  of  the  Council  whether Letter of Intent should be issued and if so, the number of seats  per  academic  year  should  also  be  recommended. The Council shall recommend a time bound programme for  the  establishment  of  the  medical  college  and expansion of the hospital facilities. This recommendation will  also  include  a  clear  cut  statement  of  preliminary requirements  to  be  met  in  respect  of  buildings, infrastructural facilities,  medical and allied equipments, faculty  and  staff  before  admitting  the  first  batch  of students.  The  recommendation  will  also  define  annual targets  to  be  achieved  by the  person to  commensurate with the intake of students during the following years.

(c)  Where  the  Council  recommends  for  not  issuing  of Letter  of  Intent,  it  shall  furnish  to  the  Central Government: (i)  its reasons for not granting the Central Government permission;  and  (ii)  documents/facts  on  the  basis  of

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12 which the  Council  recommends the  disapproval  of  the Scheme.

(d)   The  recommendation  of  the  Council  shall  be  in Form-4.

RECONSIDERATION

Wherever the Council in its report has not recommended the issue of Letter of Intent to the person, it may  upon being so required by the Central Government reconsider the application and take into account new or additional information  as  may  be  forwarded  by  the  Central Government.  The  Council  shall,  thereafter,  submit  its report  in  the same manner  as  prescribed for  the initial report.

8.  GRANT OF PERMISSION:

(1) The Central Government on the recommendation of the Council may issue a Letter of Intent to set up a new medical college with such conditions or modifications in the  original  proposal  as  may be considered necessary.  This letter of Intent will also include a clear cut statement of  preliminary  requirements  to  be  met  in  respect  of buildings,  infrastructural  facilities,  medical  and  allied equipments,  faculty and staff  before admitting the first batch of students.  The formal permission may be granted after the above conditions and modifications are accepted and  the  performance  bank  guarantees  for  the  required sums are furnished by the person and after consulting the Medical Council of India.

(2)  The  formal  permission  may  include  a  time  bound programme for the establishment of the medical college and expansion of the hospital facilities. The permission may also define annual targets  as may be fixed by the Council to be achieved by the person to commensurate with the intake of students during the following years.

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(3)  The  permission  to  establish  a  medical  college  and admit students may be granted initially for a period of one year and may be renewed on yearly basis subject to verification of the achievements of annual targets. It shall be the responsibility of the person to apply to the Medical Council of India for purpose of renewal six months prior to the expiry of  the initial  permission.  This  process of renewal  of  permission  will  continue  till  such  time  the establishment  of  the  medical  college  and expansion of the  hospital  facilities  are  completed  and  a  formal recognition  of  the  medical  college  is  granted.  Further admissions  shall  not  be  made  at  any  stage  unless  the requirements  of  the  Council  are  fulfilled.  The  Central Government may at any stage convey the deficiencies to the applicant and provide him an opportunity and time to rectify the deficiencies.

(4) The council may obtain any other information from the  proposed  medical  college  as  it  deems  fit  and necessary.”

7. Paragraph  8  of  the  Regulations  states  that  permission  to

establish new Medical College may be granted initially for a period of

one year and would be renewed on yearly basis subject to verification

of  the  achievements  of  annual  targets.  The  process  of  renewal  of

permission  continues  till  such  time  that  the  establishment  of  the

Medical  College and expansion of  hospital  facilities  are  completed

and formal recognition is granted to the Medical College. A Medical

College which gets initial permission to establish and admit first batch

of students will thus be required to seek renewal till such time that it

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14 gets formal recognition and the students admitted in the first batch are

ready to pass out and secure recognized medical qualification. This

process thus continues for five years and Category No. III as stated

herein above are cases of such Medical Colleges.

8.  The Schedule to the Regulations sets out various stages dealing

with processing of applications preferred by the Medical Colleges and

how the matter is to be dealt with at various stages. This schedule has

undergone changes over a period of time. The schedule as it existed

originally was as under:- “SCHEDULE FOR RECEIPT OF APPLICATIONS FOR ESTABLISHMENT OF NEW MEDICAL COLLEGES AND  PROCESSING  OF  THE  APPLICATIONS  BY THE  CENTRAL  GOVERNMENT  AND  THE MEDICAL COUNCIL OF INDIA

Sl.  No

Stage of processing Last Date

1. Receipt  of  applications  by  the Central Government  

From 1st August  to 31st August  (both days  inclusive) of any year

2. Receipt of applications by MCI from the Central Government

30th September

3. Recommendations  of  the Medical Council of India to the Central Government for issue of letter of intent

31st December

4. Issue  of  letter  of  intent  by  the Central Government

31st  January

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15 5. Receipt  of  reply  from  the

applicant  by  the  Central Government  requesting  for letter of permission

28th February

6. Receipt  of  letter  from  the Central  Government  by  the Medical  Council  of  India  for consideration for issue of letter of permission

15th March

7. Recommendations  of  the Medical Council of India to the Central Government for issue of letter of permission

15th June

8. Issue of letter of permission by the Central Government

15th July

Note.—(1) The information given by the applicant  in Part I of the application for setting up a medical college that  is  information  regarding  organisation,  basic infrastructural  facilities,  managerial  and  financial capabilities of the applicant shall be scrutinised by the Medical  Council  of  India  through  an  inspection  and thereafter the Council may recommend issue of letter of intent by the Central Government.

(2) Renewal  of  permission  shall  not  be  granted  to  a medical  college  if  the  above  schedule  for  opening  a medical college is not adhered to and admissions shall not  be  made  without  prior  approval  of  the  Central Government.”

9.     After the amendment vide Notification published on 28.08.2009

the Schedule underwent some modifications namely, as against  serial

numbers 3, 4, 5, 6, 7 and 8 the dates as modified were; 15 th December,

15th January,  15th February,  1st March,  15th May  and  15th June

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16 respectively.  Notes 1 and 2 were not modified at all and continued to

remain as they were.

10.  The  Regulations  were  further  amended  by  Amendment

Notification dated 21.09.2012 which was published in the Gazette of

India on 1.10.2012.  It substituted the Schedule and added a Note. The

relevant portion of the Notification is as under:- “1.  (i)  These  Regulations  may  be  called  the “Establishment  of  Medical  College  Regulations, (Amendment), 2012:

(ii)  They  shall  come into  force  from the  date  of  their publication  in  the  Official  Gazette” …………………………

6.   In  the  “ESTABLISHMENT  OF  MEDICAL COLLEGE  REGULATIONS,  1999”,  in  “SCHEDULE FOR  RECEIPT  OF  APPLICATION  FOR ESTABLISHMENT OF NEW MEDICAL COLLEGES AND  PROCESSING  OF  THE  APPLICATIONS  BY THE  CENTRAL  GOVERNMENT  AND  THE MEDICAL COUNCIL OF INDIA”, the following shall be substituted as under:-

SCHEDULE FOR RECEIPT OF APPLICATIONS FOR ESTABLISHMENT OF NEW MEDICAL COLLEGES AND  PROCESSING  OF  THE  APPLICATIONS  BY THE MEDICAL COUNCIL OF INDIA.

Sl.  No.

Stage of processing Last Date

1 Receipt of applications    by the Council

From 1st August  to 31st August  (both days  inclusive)  of any year

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17 2 Issue  of  Letter  of  Intent

by the Council  30th April

3 Receipt of reply from the applicant  by  the  Council for consideration for issue of Letter of Permission  

31st May

4 Issue  of  Letter  of Permission by the Council

15th June  

Note  :  The  time  schedule  indicated  above  may  be modified by the Central Government, for reasons to be recorded in writing, in respect of any class or category of applications.

Note.—(1) The information given by the applicant in Part I of the application for setting up a medical college that is information regarding organisation,  basic infrastructural facilities,  managerial  and  financial  capabilities  of  the applicant shall be scrutinised by the Medical Council of India  through an  inspection  and thereafter  the  Council may recommend issue of letter of intent by the Central Government.

(2) Renewal  of  permission  shall  not  be  granted  to  a medical  college  if  the  above  schedule  for  opening  a medical  college is not adhered to and admissions shall not  be  made  without  prior  approval  of  the  Central Government.”

EARLIER DECISIONS OF THIS COURT

11. The  schedule to the Regulations, the stages mentioned therein

regarding processing of applications and the requirement to adhere to

the dates specified therein,  were considered by this  Court  in  some

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18 cases.  In  Mridul Dhar v.  Union of India1 this Court was primarily

concerned with matters giving full effect to 15% All India Quota seats

available in all medical colleges run by the Union of India or the State

Government  or  Municipal  or  other  local  authorities  by  strictly

adhering to the time schedule.  While so considering, this Court in

para  28  quoted  the  Schedule  as  it  existed  then,  namely,  the  one

referred to in paragraph 8 hereinabove.  In paragraph 35 this Court

issued  certain  directions  and  direction  Nos.14  and  15  were  to  the

following effect:

“14. Time schedule for establishment of new college or to increase intake in existing college, shall be adhered to strictly by all concerned.

15. Time schedule provided in the Regulations shall be strictly  adhered  to  by  all  concerned  failing  which  the defaulting  party  would  be  liable  to  be  personally proceeded with.”

12.  In Priyadarshini  Dental  College  and  Hospital v.  Union  of

India  and  others2  this  Court  was  called  upon  to  consider  the

implications of similar such Schedule annexed to the Regulations of

Dental Council of India.  The statutory provisions and the Regulations

under the Dentists Act, 1948 are pari materia with those in the present 1  (2005) 2 SCC 65 2  (2011) 4 SCC 623

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19 case.   Note No.2 below the Schedule to the Regulations of  Dental

Council of India enables the Central Government, for reasons to be

recorded in writing, to modify the Schedule in respect of any class or

category of applications.  In this backdrop paragraph Nos.19 and 20 of

the decision in Priyadarshini are reproduced hereunder:

“19.   Regulation 11(2) clearly lays down a time schedule for  the  submission  of  applications  for  renewal  of permission (six months prior to the expiry of the current academic  session),  for  recommendation  by  DCI  (15th June)  and  for  issue  of  final  orders  by  the  Central Government regarding renewal of permission (15th July). Though, the DCI Regulations provide that the last date for issue of letter of permission or renewal of permission by the Central Government is 15th July, having regard to the scheme relating to grant of renewal of permission and Note 2 to the Schedule, the Central Government has the discretion  to  modify  the  time  schedule  in  appropriate cases, for reasons to be recorded, in respect of any class or category of applications.

20.   If the Central Government was of the view that a dental  college  deserved  renewal  of  permission  in accordance with the Act and the Regulations,  it should grant  such  permission.  If  it  was  of  the  view  that  the dental college did not deserve renewal of permission, it should refuse the permission. If the Central Government felt that the last date for granting renewal of permission was over and there was no justification for extending the time schedule, it could refuse the renewal of permission on  that  ground.  On  the  other  hand,  if  the  Central Government was of the view that the applicant College had complied with the requirements and was not at fault, and it was not responsible in any manner for the delay in considering  the  application,  and  there  were  other applicants of similar nature, it could have recorded those

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20 reasons in writing and extended the time schedule for that category of applicants and then granted the renewal of permission, provided the last date for admissions had not expired. Note 2 to the Schedule to the DCI Regulations enables  the  Central  Government  to  modify  the  time schedule, for reasons to be recorded in writing, in respect of any class or category of applications. The applicants for  renewal  of  permission  for  the  fourth  or  fifth  year, where there is compliance with the requirements relating to infrastructure, equipment and faculty, could be such a class or category of applications. Similarly, applications where  the  High  Courts  have  directed  consideration beyond 15th July in view of special  circumstances can also constitute a class or category of applicants.”

During the course of its Judgment in Priyadarshini under caption “A

Suggestion  for  modification  of  time  Schedule”  this  Court  in

paragraphs 23 to 25 observed as under:

“23. In  all  these  cases,  the  petitioners,  who  were  the applicants  for  renewal  were  existing  dental  colleges, which were functioning for three or four years and each college had admitted hundreds of students either directly or through the State Government allotment. The colleges had the benefit of initial permission and several renewals of permission. Refusal of renewal of permission in such cases  should  not  be  abrupt  nor  for  insignificant  or technical  violations.  Nor  should  such  applications  be dealt in a casual manner, by either granting less than a week for setting right the “deficiencies” or not granting an effective hearing before refusal. The entire process of verification  and  inspection  relating  to  renewal  of permission,  should  be  done  well  in  time  so  that  such existing colleges have adequate and reasonable time to set  right  the  deficiencies  or  offer  explanations  to  the deficiencies. The object of providing for annual renewal of  permissions  for  four  years,  is  to  ensure  that  the

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21 infrastructural and faculty requirements are fulfilled in a gradual manner, and not to cause disruption.

24.    In the context of what has happened in these cases, it is necessary to emphasise the distinction between the applications  for  fresh  permissions  and  applications  for renewal  of  permissions.  They  require  distinct  time schedules.  The  process  of  decision-making  under  the Regulations,  for grant of fresh or initial permission for establishment  of  new dental colleges is exhaustive and elaborate,  when  compared  to  the  process  of decision-making  in  regard  to  grant  of  renewal  of permission for the four subsequent years. Before grant of initial  grant  of  permission,  the  DCI  and  the  Central Government  are  required  to  consider  the  following aspects: whether the institution would be in a position to offer  the  minimum  standards  of  dental  education  in conformity with the Act and the Regulations; whether the institution has adequate resources; whether the institution has  provided  or  will  provide  within  the  time-limit specified  in  the  scheme,  necessary  staff,  equipment, accommodation,  training  and  other  facilities  to  ensure proper  functioning  of  the  institution;  whether  the institution  has  provided  or  would  provide  within  the time-limit  specified  in  the  scheme,  adequate  hospital facilities;  whether  faculty  having  recognised  dental qualifications  and personnel  in  the field  of  practice  of dentistry will be available to impart proper training to the students;  and  whether  other  factors  prescribed  by  the Regulations have been complied. On the other hand, for the purpose of grant of renewal of permission, DCI has to make recommendations by considering only whether the prescribed faculty and infrastructure are available.

25.    The need for renewal of permission emanates from the fact that a newly established college is not required to have in place,  full  complement  of  the teaching faculty and complete infrastructure in the first year itself. This is because, during the first year, the college will be catering

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22 only to a limited number of first year students. During the second,  third  and  fourth  and  fifth  years,  the  student strength  will  increase.  If  the  permitted  intake  is  100, usually there will be 100 students in the first year, 200 students in the second year, 300 students in the third year, 400 students in the fourth year and 500 students in the fifth year. Thereafter, the strength may remain constant. As  the  strength  increases  gradually  every  year, correspondingly the infrastructure and faculty will have to be increased.”

13. In  a  subsequent  decision  in Priya  Gupta v.  State  of

Chhattisgarh and others3 this Court in paragraph 32 reproduced the

Schedule and the Notes thereunder as referred to in Mridul Dhar and

in paragraph 40 it was stated thus:

“40.    The schedules prescribed have the force of law, inasmuch  as  they  form  part  of  the  judgments  of  this Court, which are the declared law of the land in terms of Article 141 of the Constitution of India and form part of the Regulations of the Medical Council of India, which also  have  the  force  of  law  and  are  binding  on  all concerned. It is difficult to comprehend that any authority can have the discretion to alter these schedules to suit a given  situation,  whether  such  authority  is  the  Medical Council  of  India,  the  Government  of  India,  State Government,  university  or  the  selection  bodies constituted at the college level for allotment of seats by way  of  counseling.  We have  no  hesitation  in  clearly declaring that none of these authorities are vested with the  power  of  relaxing,  varying  or  disturbing  the  time schedule, or the procedures of admission, as provided in the judgments of this Court and the Medical Council of India Regulations.”

3  (2012) 7 SCC 433

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23

 

The relevant directions issued in Priya Gupta by this Court in

paragraphs 46.1 46.3. 46.4. 47, 47.1 and 47.5 were as under:

“46.1. The commencement of new courses or increases in  seats  of  existing  courses  of  MBBS/BDS  are  to  be approved/recognised by the Government of India by 15th July  of  each  calendar  year  for  the  relevant  academic sessions of that year.   46.3. After 15th July of each year, neither the Union of India nor the Medical or Dental Council  of India shall issue  any  recognition  or  approval  for  the  current academic year. If any such approval is granted after 15th July of any year, it shall only be operative for the next academic year and not in the current academic year. Once the sanction/approval is granted on or before 15th July of the relevant year, the name of that college and all seats shall  be  included  in  both  the  first  and  the  second counselling, in accordance with the Rules.

46.4.  Any medical or dental college, or seats thereof, to which the  recognition/approval  is  issued  subsequent  to 15th July of the respective year shall not be included in the  counselling  to  be  conducted  by  the  authority concerned and that college would have no right to make admissions  in  the  current  academic  year  against  such seats.

47. All  these  directions  shall  be  complied  with  by  all concerned,  including  the  Union  of  India,  Medical Council  of  India,  Dental  Council  of  India,  State Governments,  universities  and  medical  and  dental colleges  and  the  management  of  the  respective universities or dental and medical colleges. Any default in  compliance  with  these  conditions  or  attempt  to overreach these directions shall,  without fail,  invite the following consequences and penal actions:

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24

47.1. Every body, officer  or  authority who disobeys or avoids  or  fails  to  strictly  comply with these  directions stricto  sensu shall  be  liable  for  action  under  the provisions  of  the  Contempt  of  Courts  Act.  Liberty  is granted to any interested party to take out the contempt proceedings  before  the  High  Court  having  jurisdiction over such institution/State, etc.

 47.5. The college which grants admission for the current academic year, where its recognition/approval is granted subsequent  to  15th  July  of  the  current  academic  year, shall be liable for withdrawal of recognition/approval on this ground, in addition to being liable to indemnify such students  who  are  denied  admission  or  who  are wrongfully given admission in the college.”

It may be mentioned here that the Schedule as it stood then,

when this Court rendered its Judgment in Priya Gupta did not enable

the Central Government to modify the schedule, as was permissible

under the concerned Dental Council of India Regulations considered

by this Court in Priyadarshini.  On and with effect from 01.10.2012

i.e. after the Judgment in Priya Gupta, the substituted Schedule now

empowers the Central Government to that effect.

14. It  may  further  be  mentioned  that  while  considering  the

provisions of the Act and the Medical Council of India Regulations on

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25 Graduate Medical Education, 1997,  this Court in Medical Council of

India  vs. Madhu Singh4 in para 23 had directed inter alia:-

“(i) There  is  no  scope  for  admitting  students midstream as that would be against the very spirit of statutes governing medical education; ……………………… ……………………

(iv) MCI shall ensure that the examining bodies fix a time schedule specifying the duration of this course, the date of commencement of the course and the last date for admission; …………………… ………………………

(vi) no variation of the schedule so far as admissions are concerned shall be allowed;

(vii)   in  case  of  any  deviation  by  the  institution concerned,   action  as  prescribed  shall  be  taken  by MCI.”

  THE PRESENT CASES

15.  In the instant cases, during inspections conducted by the MCI in

respect of Medical Colleges falling in Categories I, II and III as stated

above,  certain  deficiencies  were  found  which  were  then

communicated  to  the  concerned  applicants.  According  to  the

concerned applicants, either the deficiencies were wrongly noted or

they  had  since  then  been  rectified  and  compliance  was  reported.

4      (2002) 7 SCC 258

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26 Though compliance was so reported and the Central Government / the

MCI were asked to have inspection to verify such compliance,  the

Central Government communicated its disapproval without taking any

steps to assess or verify the compliance report.  By way of illustration

we may set out relevant facts in Writ Petition (C) No.705 of 2014

which are as under:-  

(a)   The scheme under Section 10A of the Act for establishing a

new medical  college  by the  applicant  was  placed before  the

Scrutiny  Committee  of  the  MCI  on  22.01.2014.   The

deficiencies in certain documents pertaining to land and finance

having  been  pointed  out,  the  concerned  documents  were

furnished by the applicant on 07.02.2014.  The matter was then

placed  before  the  Executive  Committee  of  the  MCI  on

14.03.2014 which decided to accept the application subject to

compliance of certain requirements.  These were complied  with

by the applicant on 14.04.2014.   

(b) A surprise inspection was undertaken on 26.05.2014 and

27.05.2014  in  which  certain  deficiencies  in  infrastructure,

faculty  and clinical  material  were  found.   Considering  these

deficiencies to be serious, the Executive Committee of the MCI

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27 decided to disapprove the application and the decision was so

communicated to the Central Government on 14.06.2014.

(c) On  26.06.2014  the  applicant  reported  compliance  and

submitted that the deficiencies stood removed.  A Committee

appointed by the Central Government to grant personal hearing

to  all  such  colleges  where  negative  recommendations  were

given by the MCI, granted personal hearing to the applicant and

forwarded compliance report dated 26.06.2014 for verification

and appropriate action.

(d) The  Executive  Committee  of  the  MCI  however  in  its

communication  dated  10.07.2014  stated  that  no

compliance/verification could be undertaken for the academic

year  2014-15.   Thereafter  Central  Government  vide its  letter

dated  15.07.2015  disapproved  the  scheme  submitted  by  the

applicant in view of the inability of the MCI to assess/verify the

compliance.

(e) In the circumstances the applicant filed Writ Petition (C)

No.705 of  2014 in this  Court  submitting,  inter  alia,  that  the

inspection  was  conducted  almost  after  eight  months  thereby

pushing the matter to such levels where it became impossible

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28 for the MCI to assess the compliance report and that the MCI

ought to have paced itself in accordance with mandatory time

schedule so that all the stages could possibly and effectively be

undertaken before the dead line mentioned in the Schedule.

(f) In reply it was submitted by the MCI that every applicant

submitting a scheme is obliged to fulfill minimum norms as on

the date of application but generally such applicants request for

postponement of inspection so that they get additional time to

put  their  house  in  order.   Resultantly  the  inspection  teams

appointed by it are under tremendous workload in and around

April/May.   It  further  submitted  that  it  had  obtained  legal

opinion to the effect that in view of the decision in Priya Gupta

it was impermissible to undertake any inspection after 15th of

June and as such no verification of compliance report could be

undertaken.

16. The facts mentioned above as obtaining in Writ Petition   (C)

No.705  of  2014  are  illustrative  and  the  fact  situation  so  also  the

submissions in the other matters are more or less identical and the

communications  of  disapproval  by  the  Central  Government  in

concerned cases were also on the same date i.e. on 15.07.2014.  In

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29 most of the matters the applicants approached this Court under Article

32 of the Constitution of India while in some cases they went to the

High  Court.   In  certain  cases  the  High  Court  directed  the  Central

Government and the MCI to undertake fresh inspection.  These orders,

at the instance of the MCI are under challenge, in which this Court

suspended the operation of directions so issued by the High Court.  In

some cases the High Court did not grant any interim relief and the

applicants  have  preferred  special  leave  petitions  challenging  the

correctness of such refusal.

INTERIM DIRECTIONS

17. During the course of hearing, an affidavit was filed on behalf of

the Union of India on 18.09.2014 stating inter alia,

(i) The total intake capacity of MBBS seats in the country

increased  from 51598 in  2013-2014 to  54348 in  2014-2015.

However renewal of seats was not permitted in case of 3920

seats in 2014-2015 and as such there was a net loss of 1170

MBBS seats in 2014-2015.

(ii) The MCI had recommended for disapproval of renewal

in case of 8667 seats.  However renewal permission in case of

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30 4747  MBBS seats  in  73  Government  Medical  Colleges  was

granted  by  the  Central  Government  on  the  last  day  i.e.

15.07.2014, by relying on the undertaking/compliance given by

respective State Governments.

(iii) The Central Government issued disapproval letters to 46

Medical Colleges including 41 Private Medical Colleges with

3685 MBBS seats  and 5 Government Medical  Colleges with

235 seats for the year 2014-2015.   

18. Since  the  deadline  for  effecting  admission  as  per  Medical

Council of India Regulations on Graduate Medical Education, 1997

namely 30.09.2014 was approaching and large number of seats were

involved because of recommendations for disapproval without having

assessed  or  verified  compliance  as  reported  by  the  applicants,  the

matters  were  considered  for  grant  of  suitable  relief.   The  Medical

Colleges in Category III as mentioned above alone were considered fit

to be granted such relief as they were all renewal cases.   All these

Medical Colleges had received permission to set up and/or to increase

the intake in previous year(s). The cases in Category III being renewal

cases were considered differently as against other cases in the light of

the law laid down in  Priyadarshini. This Court therefore by orders

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31 dated 18.09.2014 and 25.09.2014 permitted all the medical colleges

falling in category No.III to give fresh admissions in the first year of

the M.B.B.S. Course subject to certain conditions mentioned in those

orders.  The Medical Colleges in that category were required to file an

undertaking  on  same  terms  as  Government  Medical  Colleges  that

there was no deficiency and that if the undertaking so submitted was

found to be incorrect  in  the next  inspection,  their  deposit  with the

MCI, which was around Rs.10 crores, would be forfeited by way of

penalty.  It was further directed that admissions could be given to only

those students from the merit list prepared by the respective States and

that the students would be charged fees prescribed by the Government

Medical Colleges of the respective States.  These orders were passed

as the concerned medical colleges had already received permission to

establish new medical college or to increase the intake capacity and

the matters in issue were only concerning renewal permissions and as

the  concerned  colleges  had  statedly  removed  deficiencies  and

submitted their compliance reports.   

SUBMISSIONS

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32 19. The matters were thereafter taken up for hearing.  By this time

the dead line for effecting admissions for the academic year 2014-15

was over.  The learned counsel  appearing for  various applicants as

well as the counsel appearing for the Union of India and the Medical

Council  of  India  were  heard  on  the  Statutory  Scheme  as  well  as

parameters to be considered at various stages,  time schedule in the

Regulations and the requirement to adhere to such time schedule.   We

heard Mr. Kapil  Sibal,  Dr. Rajeev Dhavan, Mr. Vishwanath Shetty,

Mr.  Mohan  Parasaran  and  Mr.  Nidhesh  Gupta,   learned  Senior

Counsel  appearing for  various applicants,  Mr. Vikas Singh, learned

counsel for MCI and Ms. Pinky Anand, learned Additional Solicitor

General  for  the  Union  of  India.  We  must  record  our  sincere

appreciation for the assistance rendered by the learned Counsel.

20. It was submitted on behalf of the applicants that:

(a)  Section 10A of the Act read with the Regulations and the

Scheme  framed  thereunder  contemplates  certain  initial

pre-requisites  such  as  Essentiality  Certificate,  Consent  of

Affiliation, a suitable plot of land as prescribed and a three

hundred  bed  hospital  with  necessary  infrastructure  and

facilities.  If these qualifying pre-requisites are not met, the

permission to establish a medical college will certainly not

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33 be  granted.   However,  in  none  of  the  present  cases,  the

denial  or  disapproval  was on account of  inability to meet

these qualifying pre-requisites.

(b)According to sub-section (7)  of Section 10A,  the Scheme

and  the  Regulations,  certain  requirements  like  necessary

facilities in respect  of staff,  equipment,  accommodation,

training  as  well  as   hospital  facilities  could  be  provided

within the time limit specified in the Scheme.    Unlike the

qualifying  pre-requisites  as  stated  earlier,  these  facilities

could be put in place and made effective at a later point of

time.  

(c)  Reading of sub-sections (3) , (4) and (8) of Section 10A

read with Clauses 7 and 8 of the Regulations as well as the

underlying  idea  behind  sub-section  (7)  of  Section  10A

would  show  that  the  concerned  applicant  ought  to  be

afforded  time  and  sufficient  opportunity  to  rectify  the

deficiencies.   Reliance was placed on the decision of  this

Court in Swamy Devi Dayal Hospital & Dental College vs.

Union of India.5

(d)The  compliance  having  been  reported,  the  MCI  and  the

Central  Government  were  obliged to  assess  whether  such

deficiencies stood removed or not.   Inability of the MCI to

perform  its  statutory  obligation  and  initiate  appropriate

action  within  the  time frame has  penalized  the respective

colleges for no fault of theirs.  

5 (2014) 13 SCC 506

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34 (e)The  MCI  and the  Central  Government  must  arrange  their

affairs  in  such  a  way  that  the  respective  stages  in  the

Schedule are adhered to, affording reasonable opportunity to

the concerned medical colleges  to rectify the deficiencies.

Having pushed the concerned colleges close to the dead line,

the  MCI  and  the  Central  Government  cannot  then  take

refuge under the Schedule and project their inability to carry

out any compliance verification.  

(f) The Note under the Schedule to the regulations, as brought

in by Amendment Notification dated 21.9.2012 sufficiently

enabled  the  Central  Government  to  modify  the  time

schedule,  as laid down by this Court in Priyadarshini.  The

Central  Government  did make an  exception and modified

the  time  limits  in  the  Schedule  in  favour  of  Government

medical colleges. Similar such benefit ought to have been

extended in favour of the private Medical Colleges as well.

21. Mr. Vikas Singh, learned Senior Advocate submitted that the

Scheme contemplated  that  the  concerned  applicants  must  have  the

necessary  facilities,  faculty  and  infrastructure  in  existence  and

operational as on the day the application was made.    He submitted

that  most  of  the  applicants  themselves  would  request  the  MCI  to

conduct inspections as late as possible, which would give additional

time to the concerned applicants to put the facilities in order. In these

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35 circumstances, the inspections were carried out in the months of April

and May.  In his submission, because of mandatory directions in Priya

Gupta, the MCI refused to undertake any inspection for compliance

verification. He however fairly accepted that in view of sub section

(4) of Section 10 A of the Act, before any disapproval of Scheme was

recorded, reasonable opportunity ought to have been given and that

such opportunity is available even in Renewal Cases in Category III.

During the course of submissions he submitted Draft Schedules, one

pertaining to applications for Establishment of new Medical Colleges

and increase of admission capacity while the other relating to cases of

Renewal of Permission in an existing Medical College. Those Draft

Schedules are set out hereunder:-  

SCHEDULE  FOR  RECEIPT  OF  APPLICATIONS  FOR ESTABLISHMENT  OF  NEW  MEDICAL  COLLEGES  AND INCREASE  OF  ADMISSION  CAPACITY  IN  AN  EXISTING MEDICAL  COLLEGE  AND  PROCESSING  OF  THE APPLICATIONS BY THE CENTRAL GOVERNMENT AND THE MEDICAL COUNCIL OF INDIA.  

Stage of processing Last date 1. Receipt  of  applications  by  the  Central

Government and Submission of Standard Assessment Form, Declaration Forms of the  Faculty  members  and  Resident Doctors  &  other  documents  by  the

From 1st August  to 31st August  (both days  inclusive)  of any year.

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36 applicant to the MCI.

2. Receipt of applications by MCI from the Central Government.

30th September

3. Technical Scrutiny of the applications by the MCI.  

31st October

4. Return  of  defective/incomplete applications  by  MCI  to  the  Central Government

30th November

5. Physical  assessment  of  the  applicant medical  colleges  &  communication  of deficiencies to the medical  colleges and to the Central Government.  

31st January.

6. Hearing  by  the  Central  Government Under section 10A(4).

1st to 20th February

7. Forwarding  of  Representation/ Compliances by the Central Government to  the  MCI  in  cases  where  compliance verification is required.

28th February

8. Compliance  Verification  assessment  by the MCI.

30th April

9. Recommendations  of  the  MCI  to  the Central Government for issuance of letter of  permission/disapproval  of  the application.

15th May

10. Issue  of  letter  of  permission  by  the Central Government.

15th June.  

SCHEDULE  IN  THE  CASES  OF  RENEWAL  OF  PERMISSION  IN  AN

EXISTING MEDICAL COLLEGE BY THE CENTRAL GOVERNMENT AND

THE MEDICAL COUNCIL OF INDIA

Stage of processing Last date 1. Submission of Standard Assessment Forms,

Declaration Forms of the Faculty Members and Resident Doctors & Other Documents by the medical college to the MCI.

30th September

2. Physical assessment of the medical colleges &  communication  of  deficiencies  to  the medical  college  and  to  the  Central

31st January

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37 Government  

3. Hearing by the Central Government Under Section 10A(4)

1st to 20th February

4. Forwarding of Representation/Compliances by the Central Government to the MCI in cases  where  compliance  verification  is required.  

28th February

5. Compliance verification assessment by the MCI  & Recommendations  of  the  MCI  to the  Central  Government  for  issuance  of letter of permission/or not to grant renewal of permission.

15th May

6. Issue of letter of permission by the Central Government

15th June

DISCUSSION   

22. We grant special leave to appeal in all the matters in categories

I and III.

23. While considering the Scheme under Section 10A of the Act,

the MCI and the Central Government are required to have due regard

to  the  factors  referred  to  in  sub-section  (7)  thereof.   If  the  initial

Scheme  itself  is  found  to  be  defective  or  is  to  be  disapproved,

sub-section (3)(a) and proviso to sub-section (4) of Section 10A oblige

the  MCI  and  the  Central  Government  respectively  to  grant  to  the

applicant reasonable opportunity to rectify the defects and of being

heard.  The Statute thus recognizes that before any adverse decision is

taken  as  regards  the  Scheme,  the  applicant  must  be  afforded

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38 reasonable opportunity.  This facet has been considered by this Court

while dealing with issues under Section 10A of the Dentists Act in

Swami  Devi  Dayal.  It  was  laid  down  that  the  requirement  of

following the principles of natural justice is available at two stages,

first where the Dental Council of India finds deficiencies during its

inspection and secondly at the level of the Central Government before

it passes any adverse orders after receipt of the recommendations by

the Dental Council of India. The observations in  Swami Devi Dayal

while considering provisions of Section 10A of the Dentists Act which

are pari materia  with  Section 10A of the Act, must apply with equal

force in relation to cases under the Act.  In paragraphs 22.2 and 22.3 it

was laid down in Swami Devi Dayal as under :

“22.2   It  contemplates  grant  of  opportunity  of being heard at two stages. First stage would be at the level of DCI after the scheme is submitted to DCI under sub section (2) of Section 10A of the Act.  Once  it  is  found  by  the  DCI  that  all  the parameters  for  granting  permission  are  met,  it recommends the grant of approval of the scheme to the Central Government. In case Scheme  is found to be deficient, sub section (3) (a) of Section 10 A of the Act casts  an obligation on the part  of  the DCI to give a reasonable opportunity for making a written  representation  and  also  to  rectify  the deficiencies, if any, specified by the DCI. Second stage  of  adherence  to  the  principles  of  natural justice  is  provided  at  the  level  of  Central Government at the time when it has to take final

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39 decision, after the receipt of the recommendation sent  by the DCI.  This  requirement  of  hearing is stipulated in proviso to sub section (4) of Section 10A,  in  the  event  the  Central  Government  is proposing to disapprove the scheme.

22.3   The expression “opportunity of being heard” occurring  in  this  proviso  would  mean  that  the material that goes against the applicant and is to be taken into consideration,  is  to be supplied to the applicant  within  an  opportunity  to  make representation. For this purpose either the report of the  DCI  itself  can  be  supplied  or  atleast  the deficiencies pointed out  in the report  have to be communicated by the Central Government to the applicant  with  an  opportunity  to  furnish  its comments thereupon. At that stage while giving its reply, if the applicant claims personal hearing, such a personal hearing should also be accorded.”

24. The Scheme under Section 10A, with due regard to the factors

referred  to  in  sub-section  (7),  may  contemplate  putting  in  place

necessary facilities at a later point of time.  Paragraphs 7(b) and 8(3)

of the Regulations also speak of defining and achieving annual targets

respectively.  Naturally, it needs to be assessed and verified whether

such annual targets  are achieved or  not.   The timely assessment  is

integral to the Scheme itself and the MCI and the Central Government

are  therefore  obliged  and  required  to  conduct  renewal  inspections

every  year  so  as  to  ensure  that  the  establishment  of  the  Medical

College and expansion of hospital facilities are completed in time and

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40 in  accordance  with  the  Scheme.    In  Swamy  Devi  Dayal  it  was

observed that the provision requiring such opportunity being given to

the applicant applies not only at the initial stage when permission for

establishment of new College is under consideration but must apply

even in cases of subsequent renewal of such permission.  In our view,

the ratio in Swamy Devi Dayal must apply as regards cases of renewal

under the Act.

25. As regards cases of renewal, it was laid down in Priyadarshini

that  the  process  of  decision  making  for  grant  of  fresh  or  initial

permission  for  establishment  of  a  new  college  is  exhaustive  and

elaborate when compared to such decision making in regard to grant

of renewal of permission for the four subsequent years. It was further

stated that before grant of initial permission the aspects whether the

institution would be in a position to offer the minimum standards of

education in conformity with the Act and Regulations and whether the

institution  has  adequate  resources  and  whether  the  institution  has

provided or will be able to provide within the time limit specified in

the Scheme all the required facilities and faculty are required to be

considered and scrutinized very closely. On the other  hand for  the

purposes  of  grant  of  renewal  what  is  required  to  be  considered  is

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41 whether  the  prescribed  faculty  and  infrastructure  is  available.

Considering renewal cases on a parameter distinct and different from

that relating to establishment of a new college for the first time, it was

observed that the entire process of verification and inspection relating

to renewal ought to be done well in time so that the existing colleges

have adequate and reasonable time to set right the deficiencies or offer

explanation to the deficiencies.   

26. In  the  light  of  the  aforesaid  facets  namely  that  the  Scheme

under Section 10A may itself contemplate stage wise achievement of

annual targets and the requirements of reasonable opportunity to be

afforded not only at the initial stage but also in cases of subsequent

renewal and further that the opportunity must be afforded at both the

stages namely by the MCI as well as by the Central Government, the

Schedule under the Regulations must accommodate and provide for

adequate time limits to take care of such eventualities.  The Schedule

which  was  brought  in  force  by  way  of  an  amendment  dated

21.09.2012  unfortunately  does  not  provide  for  such  stage  wise

consideration.  It simply gives four stages without indicating any time

limits  to  ensure  grant  of  such  reasonable  opportunity  in  case  the

decisions of disapproval are taken against the applicants.  It also does

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42 not speak of any compliance verification.  The pattern that emerges in

the present  cases  is  common and consistent  in that  the inspections

were  undertaken  in  and  around  April/May 2014  and  the  letters  of

disapproval  were sent  by the Central  Government on or  about 15th

July, 2014.   Though the compliance was reported, no verification in

that behalf was undertaken.    

27. The MCI and the Central Government have been vested with

monitoring  powers  under  Section  10A and  the  Regulations.   It  is

expected of these authorities to discharge their functions well within

the statutory confines as well as in conformity with the Schedule to

the Regulations.  If there is inaction on their part or non-observance of

the time Schedule, it is bound to have adverse effect on all concerned.

The affidavit filed on behalf of the Union of India shows that though

the  number  of  seats  had  risen,  obviously  because  of  permissions

granted for establishment of new colleges, because of disapproval of

renewal cases the resultant effect was net loss in terms of number of

seats available for the academic year.  It thus not only caused loss of

opportunity to the students’ community but at the same time caused

loss to the society in terms of less number of doctors being available.

The  MCI  and  the  Central  Government  must  therefore  show  due

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43 diligence right from the day when the applications are received.  The

Schedule  giving various  stages  and time limits  must  accommodate

every possible eventuality and at the same time must comply with the

requirements of observance of natural justice at various levels.  In our

view the Schedule must ideally take care of :

(A) Initial  assessment of  the  application  at  the  first  level

should comprise of checking necessary requirements such as

essentiality  certificate,  consent  for  affiliation  and  physical

features like land and hospital  requirement.   If  an applicant

fails to fulfill these requirements, the application on the face of

it, would be incomplete and be rejected.  Those who fulfill the

basic requirements would be considered at the next stage.

(B) Inspection should then be conducted by the Inspectors of

the MCI.  By very nature such inspection must have an element

of  surprise.   Therefore sufficient  time of  about  three to  four

months ought to be given to the MCI to cause inspection at any

time and such inspection should normally be undertaken latest

by January.  Surprise Inspection would ensure that the required

facilities  and  infrastructure  are  always  in  place  and  not

borrowed or put in temporarily.   

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44 (C) Intimation  of  the  result  or  outcome  of  the  inspection

would  then  be  communicated.  If  the  infrastructure  and

facilities are in order, the concerned Medical College should be

given requisite permission/renewal.  However if there are any

deficiencies or shortcomings, the MCI must, after pointing out

the deficiencies, grant to the college concerned sufficient time

to report compliance.   

(D) If compliance is reported and the applicant states that the

deficiencies stand removed, the MCI must cause compliance

verification.   It  is  possible  that  such  compliance  could  be

accepted  even  without  actual  physical  verification  but  that

assessment be left entirely to the discretion of the MCI and the

Central  Government.   In  cases  where  actual  physical

verification is required, the MCI and the Central Government

must cause such verification before the deadline.   

(E) The result of such verification if positive in favour of the

Medical  College concerned,  the applicant  ought to be given

requisite  permission/renewal.   But  if  the  deficiencies  still

persist  or  had  not  been  removed,  the  applicant  will  stand

disentitled so far as that academic year is concerned.

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45

28. As  against  the  Schedule  brought  in  by  Notification  dated

21.09.2012,  the  draft  Schedules  submitted  by  Mr.  Vikas  Singh,

learned Senior Advocate appearing for the MCI do make provisions

for stage wise consideration and set time limits therefor.  They also

provide for hearing by the Central Government under Section 10A(4)

and compliance verification assessment by the MCI.  We accept the

submission of Mr. Vikas Singh that the draft Schedules suggested and

placed by the MCI will now take care of all foreseeable situations and

ensure availability of opportunity at all possible stages.  In our view

the draft Schedule so submitted by the MCI be given proper statutory

status.

29. The cases in hand show that the Central Government did not

choose  to  extend  the  time  limits  in  the  Schedule  despite  being

empowered  by  Note  below  the  Schedule.   Though  the  Central

Government  apparently  felt  constrained  by  the  directions  in  Priya

Gupta it  did exercise that power in favour of Government Medical

Colleges.   The  decision  of  this  Court  in  Priya Gupta undoubtedly

directed  that  Schedule  to  the  Regulations  must  be  strictly  and

scrupulously  observed.   However,  subsequent  to  that  decision,  the

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46 Regulations  stood  amended,  incorporating  a  Note  empowering  the

Central  Government  to  modify  the  stages  and  time  limits  in  the

Schedule to the Regulations.  The effect of similar such empowerment

and consequential  exercise  of  power  as  expected  from the  Central

Government has been considered by this Court in Priyadarshini.  The

Central  Government  is  thus  statutorily  empowered  to  modify  the

Schedule in respect of class or category of applicants, for reasons to

be  recorded  in  writing.  Because  of  subsequent  amendment  and

incorporation of the Note as aforesaid, the matter is now required to

be seen in the light of and in accord with Priyadarshini where similar

Note in pari materia Regulations was considered by this Court.  We

therefore  hold  that  the  directions  in  Priya  Gupta must  now  be

understood in the light of such statutory empowerment and we declare

that it  is open to the Central Government, in terms of the Note, to

extend or modify the time limits in the Schedule to the Regulations.

However  the  dead  line  namely  30th of  September  for  making

admissions to the first MBBS course as laid down by this Court in

Madhu Singh and Mridul Dhar must always be observed.

30.   Since the deadline for making admissions was over and there was

no formal permission to establish new Medical Colleges or to increase

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47 the  intake  capacity  in  respect  of  existing   Colleges,  applicants  in

Categories I and II were not considered fit for grant of any interim

relief.  For  the  same  reasons  no  relief  can  be  granted  to  them.

Consequently, the writ petitions and appeals arising from the special

leave petitions in Categories I and II except one arising out of SLP(C)

No.23512 of 2014 are dismissed. Said appeal from SLP(C) No.23512

of 2014 at the instance of the MCI is allowed and the order passed by

the  High  Court  is  set  aside.   No  orders  are  required  in  Transfer

Petition No. 1217 of 2014 and it stands dismissed.  The relief granted

in  respect  of  those  falling  in  Category  III,  vide  orders  dated

18.09.2014 and 25.09.2014 is made absolute in terms of those orders

and the writ petitions and appeals arising from special leave petitions

in Category III stand disposed of in such terms.   

31. The MCI and the Central Government are directed to discharge

their  functions  in  accord  with  the  concerned  Regulations  and  the

Statute and in keeping with the observations made hereinabove.

32.  All matters stand disposed of in above terms. No order as to

costs.

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48 ………………………..J [Anil R. Dave]

        …………………………J          [Vikramajit Sen]

        …………………………J          [Uday Umesh Lalit]

New Delhi August 20, 2015