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Supreme Court of India

INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND EDUCATION HALDIA (!CARE) & ANR.versusUNION OF INDIA & ANR.

Citation
2017 INSC 969
Decided
21 September 2017
Disposal
Disposed off

Holding

A surprise inspection is within the scheme of the Indian Medical Council Act, 1956 and the order debaring the college is valid, subject to allowing existing students to continue and directing a fresh inspection for the next academic year.

Summary

The petitioners, ICARE Institute of Medical Sciences & Research, sought approval and recognition under Section 11(2) of the Indian Medical Council Act, 1956 for MBBS courses. The Medical Council of India (MCI) conducted several inspections, including a surprise compliance‑verification inspection on 24‑April‑2017, and found numerous deficiencies, recommending that the college be debarred from admitting students for the 2017‑18 and 2018‑19 sessions. The college challenged the order, alleging that the surprise inspection was mala fide and legally untenable. The Supreme Court held that surprise inspections are expressly permissible under the Act, that mere allegations of mala fide without material do not vitiate the enquiry, and that the Central Government’s order was not flawed. However, the Court directed that students already admitted may continue their studies, that the bank guarantee remain alive, and that a fresh inspection be carried out for the 2018‑19 academic year, treating the 2017‑18 application as an application for 2018‑19.

Issues considered

  • The legality of a surprise inspection by the MCI for compliance verification under the Indian Medical Council Act, 1956.
  • Whether allegations of mala fide conduct by the assessors can invalidate the MCI’s decision and the Central Government’s order.
  • The validity of the debarment order preventing admission of students for the 2017‑18 and 2018‑19 sessions.
  • The status of students admitted prior to the debarment order.

Legislation cited

Subjects

Medical educationApproval and recognitionSurprise inspectionIndian Medical Council ActCompliance verificationNatural justiceMala fide allegationDebarmentStudents' rightsBank guarantee

Judgment

                       [2017] I I S.C.R. 755



INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                         A
         EDUCATION HALDIA (!CARE) & ANR.
                                 v.
                   UNION OF INDIA & ANR.
               (Writ Petition (Civil) No. 633Of2017)                  B
                      SEPTEMBER 21, 2017
          [DIPAK MISRA, CJI, AMITAVA ROY AND
                A. M. KHANWILKAR, JJ.)
      Indian Medical Council Act, 1956:
                                                                      c
       s. 11 (2) - Approval and recognition under - Denied -
Propriety of - Application by petitioner-College for grant of
approval and recognition u!s. 11 (2) - Assessors inspected the
institution on 3.2.2017 for evaluation of standard of examination
and recommended grant of approval- On 17.3.2017 and 18.3.2017 D
Assessors did surprise inspection of the College - Medical Council
of India (MCI). ajler pemsal of assessment report recommended
Central Government lo debar the petitioner-College ji-om admitting
students for academic sessions 2017-18 and 2018-19 - Thereafter.
on 13.4.2017 an opportunity of hearing was granted to the College
wherein it asserted that all the deficiencies had been removed by E
 12.4.2017- On 24.4.2017 officers of MCI conducted Compliance
 Verification Assessment of the College and noticed major
deficiencies - MCI in view of the report dated 24.4.2017 a/ongwilh
the reports dated 17.3.2017 and 18.3.2017. decided not to
recognize/approve the College - Central Government decided not
                                                                        F
to permit admission in MBBS Course for the academic session 2017-
 18 - Writ petition by College challenging the orders of MCI and
 Central Government alleging inter alia that the inspection on
24.4.2017 was mala fide and was not legally acceptable - Held: A
surprise inspection is conceived of within the scheme of the Act - ,
An institution that imparts medical education has to remain ever G
compliant - Mere a/legation of mala fide does not vitiate an enquiry
or proceedings - Whether there is mala fide or not, depends on the
facts and circunivtances of each case - In the present case there is
no reason to attribute any kind of malice or mala fide to the Assessors
 who are the experts in the field and further no material has been
                                                                        H
                                755
756            SUPREME COURT REPORTS                     (2017) 11 S.C.R.


A     brought on record to substantiate the a/legation of mala fide - At
      the time of consideration of recognition, the compliance is viewed
      and scrutinized with great rigour and strictness - What may be
      treated as minor (!/eftciency at the initial stage, may not remain so
      when the institution proceeds from year to year - Since the surprise
      inspection is permissible in law and the same is not tainted with
B
      mala fide, order passed by the Central Government cannot be
      flawed - Howeve1; the students who have been admitled in the
      respective courses shall be permitted to continue -· MCI is directed
      to see to it that the students who pass out ji·om the institwion. are
      conferred degree - Educatio11/Educational Institutions.
c           Disposing of the petition, the Court
             HELD: t. A surprise inspection is conceived of within the
      scheme of the Medical Council Act, 1956 and the institution/
      college is required to remain compliant. In the instant case, after
      the College submitted that it had complied with deficiencies
D     pointed out by the team of assessors, the MCI thought it
      necessary to have an inspection. It is not in dispute that the said
      inspection was a surprise inspection and further it was, as the
      MCI perceived, required to be done to verify whether the
      institution was really compliant or not. In the verification report
 E    dated 24.04.2017, as the assessors have pointed out, there are
      number of deficiencies. An institution that imparts medical
      education has to remain ever compliant. Therefore, the grievance
      agitated pertaining to surprise inspection with keen acumen docs
      not commend acceptance. [Paras 21, 31 and 32] [776-D, 781-F-
      G; 782-B, G]
 F
            Modern Dental College and Research Center and Ors.
            v. State of Madhya Pradesh and Ors. (2016) 7 SCC
            353; Manohar Lal Sharma v. Medical Council of India
            & Ors. (2013) 10 sec 60 : [2013] (9) SCR 325; IQ
            City Foundation & Anr. v. Union of India and Ors.
 G          (2017) 8 SCALE 369; Royal Medical Trust (Registered}
            and Anr v. Union of India & Anr. (2015) 10 SCC 19 -
            relied on.
         2. The attack on the compliance report on asseverations
    of ma/a fide, does not deserve acceptance. Whether there is ma/a
 H fide or not, depends upon the facts and circumstances of the case.
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                            757
         EDUCATION HALDIA (!CARE) v. U.0.1.

Mere allegation of ma/a fide does not vitiate an enquiry or              A
proceeding. In. the instant case, the allegations have been made
against the assessors who are experts in the field and there i.s no
reason to attribute any kind of malice or ma/a fide to them. In
the absence of any kind of material brought on record, the mere
allegations that ther.e was a surprise inspection, within a fortnight,   B
would not make the inspection a tainted one. [Para 33) [782-G;
783-A)
      State of Bihar v. P.P. Sharma, !AS & Am: (1992) Suppl.
      1 SCC 222 : [1991) 2 SCR 1 - relied on.
      3. An institution has to remain compliant and necessity for        c
remaining compliant becomes more important as the institution
enters the renewal year and thereafter for grant of approval and
recognition under Section 11(2) of the Act. At the time of
consideration of recognition, the compliance is viewed and
scrutinized with great rigour and strictness. What may be treated
as a minor deficiency at the initial stage may not remain so when        D
the institution/college proceeds from year to year. In the instant
case, as the surprise inspection in law is permissible and the said
inspection is not tainted with ma/a fide, as alleged, the order
passed by the Central Government with the assistance of the
Hearing Committee cannot be flawed. [Para 39] [786-B-C]                  E
      Medical Council ofIndia v. Kalinga institute of Medical
      Sciences (2011) 11 SCC 530; Royal Medical Trust and
      Am: v. Union of India and Anr. 2017 (11) SCALE 307;
      Madha Medical College & Research Institute v. Union
      of India 2017 (11) SCALE 330; Major S.D. Singh                     F
      Medical College and Hospital & Anr. v. Union of India
      & Anr. 2017 (11) SCALE 372 - relied on.
      Karpagam Faculty of Medical Sciences & Research v.
      Union of India and Ors. 2107 (11) SCALE 435;
      Varunat:iun Trust and Am: v. Union of India and Ors.
                                                                         G
      2017 (11) SCALE 242; Annaii Medical College &
      Hospital and Am: v. Union of India and Anr. 2017(11)
      SCALE 418 - referred to.
      4. Therefore, the students who have been admitted in the
respective courses shall be permitted to continue in the courses         H
758            SUPREME COURT REPORTS                     [2017) ll S.C.R.


A     and the students who pass out from the institution, the MCI shall
      sec to it that th~y are conferred degrees. The .'VICI is directed to
      conduct an inspection for recognition keeping in view the
      academic year 2018-19 and if during the inspection any deficiency
      is noticed, the same shall be intimated to petitioner No. 2
      institution and thereafter, process shall be carried out keeping
8
      in view the principles of natural justice in mind and the principles
      stated in *IQ City Fou11dation case. The inspection shall be
      carried out as per the schedule by the MCI for grant of
      recognition for the academic year 2018-2019 and to avoid any
      kind of uncalled for situation, the application submitted for the
C     academic year 2017-2018 shall be treated as application for the
      academic year 2018-2019. The bank guarantee furnished by the
      institution shall not be encashcd by the MCI and the petitioners
      shal.l kee11 it alive. [Para 40) [786-D-G]
            *IQ City Fou11dario11 and Anr. v. Union uf India and
D           Anr. (2015) 10 SCC 19 - relied on.
                                     Case Law Reference
      c2016) 1 sec 353                  relied on            Para 5
      2017 (8) SCALE 369                relied on            Para 14
 E    c2015> 10 sec 19                  relied on            Para 21
      [2013) 9 SCR 325                  relied 011           Para 22
      )1991] 2 SCR l                    relied on            Para 33
      c2011 > 11 sec 530                relied on            Para 33
 F . 2017 (11) SCALE 307                relied on            Para 34
      2017 (11) SCALE 330               relied on            Para 35
      2017 (11) SCALE 372               relied on            Para 36
      2107 (ll) SCALE 435               referred to          Para 37
 G
      2017(11) SCALE 418                 referred to         Para 38
      2017 (ll) SCALE 242                referred to         Para 38
           CIVIL ORIGINALJURISDICTION : Writ Petition (Civil) No.
      633 of2017
 H
    INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                  759
             EDUCATION HALDIA (!CARE) v. U.0.1.

          Under Article 32 of the Constitution oflndia.                            A
          Dr. Rajeev Dhavan, R.S. Suri, Sr. Advs. Rohit K. Agarwal,
    Ms.Rekha Dwivedi, Mrs.Pallavi Tayal Chadda, Ms. Nabila Hasan,
    Avinash Kumar, Advs. for the Petitioners.
         Maninder Singh, ASG, Anmol Chandan. P. Mullick, G.S. Makk.er,
    Gaurav Sharma, Pratcck Bhatia, Ms. Amandccp Kaur, Dhawal Mohan,                B
    Advs for the Respondents.
          The Judgment of the Court was delivered by
           DIPAK MISRA, CJI 1. In this Writ Petition preferred under
    Article 32 of the Constitution oflndia, the petitioner No. I-Indian Centre     c
    for Advancement of Research and Education, Haldia (!CARE), a society
    registered under the Societies Registration Act, 1961 through its Secretaiy,
    and the petitioner No. 2-ICARE Institute of Medical Sciences and
    Research and Dr. Bidhan Chandra Roy Hospital, Haldia situated in West
    Bengal through its Principal have prayed for issue of a writ of certiorari
    for quashmcnt of the order dated 31.05.2017 passed by the competent            D
    authority of the Government of India, Ministry of Health and Family
    Welfare and further to issue writ of mandamus or directing the
    respondents to grant recognition under Section 11 (2) oflhc Indian Medical
    Council Act, 1956 (for brevity, 'the Act') approval to the petitioner No.
    2 College and recognition to the MBBS degree to be awarded by the              E
    West Bengal University of Health Sciences, Kolkata in respect of the
    students who have completed their courses at petitioner No. 2. College.
           2. The facts which are essential for the purpose of adjudication
    of the controversy arc that the petitioner No. 2 College was established
    in 2011 and it has been imparting education in MBBS courses since the
                                                                                   F
    academic year 2011-2012 and has been granted renewal permission for
    all subsequent years up to 2016-2017. For the purpose of grant of renewal
    of permission under Section I 0-A of the Act, a surprise assessment was
    carried out by the assessors on 05.11.2015 and 06. l l.2015. The
    assessment report dated 06.1 l.2015 showed certain deficiencies and
    thereafter the same being not removed by the institution, the Executive        G
    Committee of the Medical Council oflndia (MCI) recommended to the
    Central Government not to renew permission for the admission of 6'"
    batch (100 seats) of the MBBS for the academic year 2016-2017. The
    petitioners came to know about the recommendation and the deficiencies
    and through communication dated 02.01.2016 informed the respondent
                                                                                   H


'
760             SUPREME COURT REPORTS                          (20 I 7] I I S.C.R.



A     No. I that the deficiencies pointed out in the assessment report dated
      06. I 1.20 I 5 had been duly rectified and accordingly submitted for
      compliance report. A request was made for issuance of Letter of
      Permission forndmission of 6'" batch ofMBBS course for the academic
      year 2016-20 I 7 on the basis of the compliance report.
B             3. After receipt of the compliance report from the petitioner No.
      2, the second respondent carried out a surprise inspection for clarification
      of the compliance on I 9.02.2016. On the date ofinspection, the assessors
      found ce11ain deficiencies and eventually on 14.05.2016 recommended
      to the respondent No. I not to renew the permission for admission of the
      6'" batch (100 seats) in MBBS course for the academic year 2016-
c     2017.
            4. The decision of the Executive Committee of the MCI taken on
      meeting held on 13.05.2016 is note worthy. It is as follows:
              "The Executive Committee of the Council considered the
D             compliance verification assessment, report (I 9'h February 2016)
              alongwith previous assessment report (5'h & 61hNovember, 2015)
              as well as letter dated 19/02/2016 and 14.03.2016 received from
              the Principal of the college and noted the following:-
              !. Defiqiency of faculty is 67% as detailed in the report
 E            2. Shortage of Residents is 85% as detailed in the report
              3. Bed occupancy was only 08% on day of assessment which is
              grossly inadequate. Many wards were closed.
              4. OPD attendance was only 250 on day of assessment which is
              grossly inadequate.
 F
              5. Casualty attendance was only 09 on day of assessment. No
              Casualty Medical Otlicer was present on day of assessment
              6. There was NIL Major & NIL Minor operation on day of
              assessment
 G            7. There was NIL Normal Delivery & NIL Caesarean Section
              on day of assessment
              8. Radiological & Laboratory investigation workload is
              inadequate. Separate register for Laboratory investigation is not
              available.
H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                   761
 EDUCATION HALDIA (!CARE) v. U.0.1. [DIPAK MISRA, CJI]

        9. Histopathology & Cytopathology workload is NIL on day of             A
        assessment.
        I 0. ICUs: ICCU beds are not available. MICU & !CCU are
        common.
        11. Otho. Deficiencies as pointed out in the assessment report.
                                                                                B
        In view of the above, the Executive Committee of the Council
        decided to recommend to the Central Govt. not to renew the
        permission for admission of 6 inbatch of 100 MBBS students at
        ICARE Institute of Medical Sciences & Research, Haldia, West
        Bengal under West Bengal University of Health Sciences,
        Kolkata u/s l OA of the IMC Act, J956 for the academic year             c
        2016-2017."
         5. After receipt of the recommendation of the Executive
Committee of the MCI, the first respondent vidc communication dated
10.06.2016 directed the petitioner institution not to admit any students in
6'' batch (JOO seats) in MBBS course for the academic year 2016-                D
2017. It is necessary to state here that by that time the Oversight
Committee had come into existence by virtue of the Constitution Bench
judgment in Modem Dental College and Research Center and others
v. Stale of Madhya Pradesh and others'. The Oversight Committee
informed the MCI that it had decided in its meeting held on l 3.06.2016         E
to permit all colleges which had not been afforded an opportunity of
 hearing to present their compliance deficiencies communicated by MCI
 in the inspection/verification reports for 2016-2017 be given an opportunity
 to furnish their compliance reports to respondent No. I. The petitioner
College submitted its fresh application for renewal permission for 6'"
 batch (JOO scat) forthe academic ycar2016-2017 on 20.06.2016 along             F
with the compliance report. The petitioners also submitted a letter dated
30.07.2016 to the Oversight Committee clarifying the factual position in
respect of alleged deficiencies pointed out by the assessors and thereatier,
the first respondent vidc communication dated 20.08.2016 on the basis
of the report of the Oversight Committee granted permission for the 6''
                                                                                G
batch (JOO scats) in MBBS course for the academic year 2016-2017
under Section I 0-A of the Act and further stipulated that the next batch
 of students in various courses be admitted in the College only after the
 permission of the Central Government for renewal and fulfilling of the
 stipulated conditions. Be it stated, the conditions that were imposed by
  •(20t6) 1sec353                                                               H
762            SUPREME COURT REPORTS                           [2017] l l S.C.R.


A     the Oversight Committee were incorporated in the letter of respondent
      No. 1. The conditions imposed by the Oversight Committee read:
              "(i) An affidavit from the Dean/Principal and Chairman of the
              Trust I Society/ University/ Company etc concerned, aftirming
              folfillmcnt ofall deficiencies and statements made in the respective
B             compliance report submitted to MHFW by 22 June 2016.
              (ii) A bank guarantee in the amount of Rs. 2 crore in favour of
              MCI, which will be valid for 1 year or until the first renewal
              assessment. whichever is later. Such bank guarantee will be in
              addition to the prescribed fee submitted alongwith the application.
c             2. The OC has also stipulated as follows:-
              (i) OC may direct inspection to verify the compliance submitted
              by the College and considered by OC, anytime after 30 September
              2016.
              (ii) In default of the conditions (i) and (ii) in para l above and if
D·
              the compliances are found incomplete in the inspection to be
              conducted after 30 September 2016, such college will be debarred
              from fresh intake of students for 2 years commencing 2017-
               18."
             6. It is the stand of the petitioner No. 2 that it had complied with
 E
      the conditions imposed by the Oversight Committee and also furnished
      the bank guarantee in favour of the second respondent. In the meantime,
      students admitted in the first batch had completed the course and were
      ready to appear for their final protessional MBBS University examination
      in February, 2017 and in this factual background, it applied for grant of
 F    approval and recognition under Section 11(2) of the Act.
             7. It is contended by the petitioner No. 2 that after receiving the
      application of the college/institute, the MCI is required tu carry out
      assessment for compliance verification in the light of assessment report
      dated 19.02.2016 and to evaluate the standard of MBBS University
 G    Examination and to assess the infrastructural facilities available therein
      and thereafter confer approval and recognition to MBBS degree with
      permission to admit students during the academic session 2017-2018. It
      is averred that MCI inspected the institution on 03.02.2017, 17.03.2017
      and 18.03.2017 for the purposes mentioned above. After evaluation of
      standard of examination on 03.02.2017, the assessors submitted a report
 H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                  763
EDUCATION HALDIA (!CARE) v. U.0.I. [DIPAK MISRA, CJI]

in Form 'C' and recommended for grant ofapproval of the institute. On          A
1"7.03.2017 and 18.03.2017 in the compliance verification report. the
assessors did not notice any major deficiency whatsoever but the MCI
after perusal of the said assessment report decided to recommend to the
Central Government to debar the petitioner institute from taking admission
of students in MBBS course for the next two sessions, that is, 2017-
                                                                               B
2018 and 2018-2019. The Executive Committee of the MCI took note
of the assessors report which has noted the following:
        "l. There were only 08 Major Operations for the whole hospital
        on day of assessment.
        2. ICUs: There were only 2 patients each in SICU, NICU, PICU           C
        on day of assessment.
        3. Radio diagnosis department: 4 Static X-ray machines arc
        available against requirement of5. 2 USG machines arc available
        against requirement of3.
        4. Students Hostels: Available accommodation is less than              D
        required as detailed in the. report Study room docs not have
        Computer with Internet & is not air-conditioned.
        5. Intcrns' Hostel: Available accommodation is less than required.
        Hostels are not furnished. Toilet facilities are inadequate.
        Visitors' room, AC. Study room with Computer & Internet and            E
        Recreation room are not available.
        6. Nurses' Hostel: Available accommodation is for 44 against
        requirement of 48.
        7. MEU: Infrastructure facility in MEU is not adequate. There
        is no computer internet facility.                                      F

        8. Other deficiencies as pointed out in the assessment report."
       8. Thercatlcr the Executive Committee opined thus:
        "In view of the above, the college has failed to abide by the
        undertaking it had given to the Central Govt. that there are no        G
        deficiencies as per clause 3.2(i) of the directions passed by the
        Supreme Court mandated Oversight Committee vide
        communication dated 12/08/2016. The Executive Committee,
        after due deliberation and discussion, has decided that the college
        has failed to comply with the stipulation laid down by the Oversight   H
764            SUPREME COURT REPORTS                         [2017] I l S.C.R.


A             Committee. Accordingly, the Executive Committee recommend>
              that as per the directions passed by Oversight Committee in para
              3.2(b) vide comm um cation dated 12/08/2016 the college should
              be debarred from admitting students in the above course for a
              period of two academic years i.e. 2017-18 and 2018-19 as even
              after giving an undertaking that they have fulfilled the entire
B
              infrastru~ture for recognition/approval of IC ARE Institute of
              Medical Sciences and Research, Haldia, West Bengal for the
              award ofMBBS degree ( 100 scats) granted by The West Bengal
              University of Health Sciences, Kolkata u/s II (2) of the IMC
              Act, 1956 and Compliance Verification Assessment for renewal
c             of permission for admission of6'' batch (JOO MBBS scats) u/s
              I O(A) of the IMC Act, 1956 for the Academic year 2016-17
              with reference to the conditional approval accorded by Oversight
              Committee, the college was found to be grossly deficient. It has
              also been decided by the Executive Committee that the Bank
              Guarantee fw·nished by the college in pursuance of the directives
D
              passed by the Oversight Committee as well as GO! letter dated
              20/08/2016 is liable to be encashed."
             A copy of the recommendation was sent to the Principal of the
      petitioner institute.

 E           9. After receiving the communication from the MCI, petitioner
      No. 2 vide letter dated 04.04.2017 submitted a detailed representation to
      the Oversight Committee highlighting the unjustified decision of the
      Executive Committee of MCI with regard to compliance verification. A
      communication was also sent to respondent No. 1. In the meantime, the
      petitioner received a communication dated 07.04.2017 issued by the first
F     respondent granting an opportunity of personal hearing on 13 .04.20 I 7.
      The petitioners appeared before the respondent No. I on the date fixed
      and furnished the requisite information and reiterated the stand that the
      petitioner No. 2 institute is fully compliant with the MCI rules and
      regulations and clarified the position relating to deficiencies which were
G     noted as per the assessment report on 03.02.2017. It also highlighted
      that the assessment reports of! 7.03.2017 and I 8.03.2017 did not justify
      denial of grant of permission and in any case. the institution had taken
      measures to remove the said deficiencies. It was asserted that the
      compliance report dated 12.04.2017 of the institute clearly established
      that all the deficiencies have been removed by 12.04.2017.
H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                765
 EDUCATION HALDIA (!CARE) v. U.0.1. [DIPAK MISRA, CJ!]

       10.According to the petitioners, on 24.04.2017 officers of A
respondent No. 2 without prior intimation conducted an assessment
flouting all norms. The report dated 24.04.2017 which is named as
C.ompliance Verification Assessment of the petitioner-College by the
MCI noted certain major deficiencies which are as follows:
       "I. Deficiency of faculty is 61.32% as detailed in the rcpo11.        B
       2.· Shortage of Residents is 36.06% as detailed in the report.
       3. Bed Occupancy is 45.95% at 10 a.m. on the day of
       assessment.
       4. Most of the wards are not as per MSR.                              c
       5. In Obst. & Gynae wards, pediatric wards and orthopedic wards
       patients have minor complaints did not required admission, in
       obstetrics wards elderly lay admitted in the wards (college
       authority not provide a case sheet about this). Hospital internal
       condition is non-hygienic.
                                                                             D
        6. There were only 05 Major Operations on day of assessment.
       7. Data of Laboratory & Radiological investigations provided by
       the Institute arc inflated.
        8. IPD attendance data provided by Institute are inflated."
                                                                             E
      11. The Executive Committee in its meeting held on 30.04.2017
considered the compliance verification report dated 24.04.20 l 7 along.
with previous assessment report ( 17'" & 18'" March, 2017) and noted :
       "In view of the above, the Executive Committee of the Council
       decided to recommended to the Central Government not to F
       recognize/approve !CARE Institute of Medical Sciences &
       Research, Haldia, West Bengal for the award of MBBS degree
       (I 00 seats) granted by The.West Bengal University of Health
       SciCrlccs, Kolkata Uls ll(Z) efthe IMC Act, 1959 and further
       decided that the Institute be asked to submit the co~plillru;.e for
       rectification of the above deficiencies within 0 I month for furtbe~G
       consideration of the matter.                                        '------
H.owever in view of above, the Executive Committee to reiterate its
earlier decision to recommend to the Central Govt, that the college should
be debarred from admitting students in the above course for a period of
                                                                             H
766             SUPREME COURT REPORTS                             [2017] 11 S.C.R.


A     two academic years i.e. 2017- 18 & 2018-19 as per directions passed by
      Oversight Committee in Para 3.2(b) vide communication dated
      12.08.2016."
              12. Inspection carried out by the MCI on 24.04.2017 was brought
      to the notice of the Oversight Committee highlighting that the assessment
B     carried out on the said date was factually incorrect and not in good faith.
      Criticism was advanced about the inspection of 24.04.2017 on the
      foun,httion that (jespite assessments carried out on 03.02.2017, 17.03.2017
      and 18.03.2017, a surprise and perfunctory verification was carried out.
      As the factual narration would uncurtain, the respondent No. I vidc
      letter dated 31.05.2017 intimated the petitioner No. 2 College that the
c     Central Government decided not to permit admission of students in the
      MBBS course (100 course) for the academic year 2017-2018 with the
      further stipulation that the admission made against the decision of the
      Central Government will be treated as irregular and action will be initiated
      under the Act and Regulations made thereunder. Examples have been
D     cited in the Writ Petition, how the other institutions who had suffered
      from significant deficiencies have been granted the Letter of Permission
      and action of the respondents have been characterized as ma/a fide.
             13. It is necessary to state here that after the matter was sent for
      reconsideration, the Central Government granted hearing to the college
E     on 22.08.2017 and took the assistance of the newly constituted Oversight
      Committee as per the order of the Constitution Bench. The Hearing
      Committee after considering the repo1t and submissions of the College
      submitted its report by stating that there was no merit for reconsideration
      of the case for renewal and it concurred with the decision taken by the
      Ministry on earlier occasion. The decision of the Hearing Committee
F     has been enclosed with the order dated 29.08.2017. The report of the
      Hearing Committee also mentioned the tabular. We think it appropriate
      to reproduce the same:
        Deficiencies   Deficiencies in   Deficiencies   Comments         Hearing
        2016-17        cornpliance       in             of OOHS          Comrrittee
G                      verification      compliance     Hearing          fmding-;
                       assessment on     verification   Co111n1ittt.>e   (22.8.2017)
                       3rd Feb. 2017     for
                       & 17th-18th       Recognition
                       March, 2017       on 24.4.2017
                       after OC
H                      annroval
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                    767
 EDUCATION HALDIA (!CARE) v. U.0.1. [DIPAK MISRA, CJ!]

                                                                                 A
I-                 I.There were      I. Deficiency                 1,2,3. The
Deficiency        only 08 Major      of faculty is    I.           college
of fa cul ly is   Operations for     61.32% as        Complied     authorities
67"/o as          the whole          detailed in      with       submitted the
 detailed in      hospital on day    the report.      2. Need to explanation
the report        of assessment.     2. Shortage      tlJC re-   as per the
2. Shortage       2. ICUs: There     of Residents     verified   deficiency      B
of Residents      wereonly2          is 36.06% as     3. Agreed  pointed out
 is 85~'0 as      patients each in   detailed in      to the     by MCI for
detailed in       SICU, NICU,        the report.      deficiency points I, 2 &
the report        PICU on day        3. Bed           in the     3. College
3.Bcd             of assessment      Occupancy is  assessn1ei.1t authorities
 occupancy        3. Radio-          45.95% al IO  report. No    failed to
 was only         diagnosis          a.m. on day   satisfactory produce any
                                                                                 c
 08% on day       department:        of assessment reply.        concrete
 of               4 Static X-ray     4. Most of    Deficiency documentary
 asscss1ncnt      machines arc       the wards arc persists.     proofofthcir
 \vhich is        available          not as per                  contention
 grossly          against            MSR.                        4. The
 inadequate.      requircn1ent of    5. In Obst &                college         D
 Many v.'3rds     5. 2USG            Gynae wards,                authorities
\Vere closed.     n1achincs are      pediatric                   could not
4.0PD             available          wards and                   provide any
 attendance       against            orthopedic                  satisfactory
 \vas only        rcquircn1cnt of    ward11                        evidence.
250 on day        3.                 patients                      5 ·n1c
of                4: Students'       have minor                    I-I caring    E
asscssrncnt       Hostels:           con1plaints                   Committee
\Vhich is         Available          did not                       cannot give
grossly           accommcxiatio      required                      comn1ents
inadequate.       n is less than     adn1ission, in                regarding
5. Casualty       required as        obstetrics                    the
attendance        dctai led in the   ward> elderly                 genuineness   F
was only09        repo1t. Study      lady admitted                 of the
on day of         roo1n docs not     in the wards                  patients as
asscssn1cnt.      have Computer      (college                      pointed out
No Casualty       with lnlcmct &     authority not
Medical           is not air-        provide a
Oflicerwas        conditioned.       case sheet
present on        5. Interns'        about this).                                G
day of            Hostel:            Hospital
asscssn1ent                          inten1al




                                                                                 H
768           SUPREME COURT REPORTS                         [2017] 11 S.C.R.


A
      6. Therewas        Available          condi tion is      by MCiin
      NIL Major&         uccorrunodatio     non-               pumt No.
      NIL Minor          p 1s less than     hygienic.          5. Also the
      operation on       required.          6. There were      college
      day of             Hostels are not only. 05              authoritie:i
B     assessn1ent        fumished.          Major              failed to
      7. There was       Toilet facilities Qperations          provide
      NIL Normal         are inadequate. on           day      any furt[l,r
      O.:livery & NIL    Visitocs' room, of                    proof
      Caesarean          A.C. Study         assessment.        regarding
      Sl'Ction on day    room with          7. Data of         the san1e.
c     of asscssn1ent
      8. Radio!ogic;tl
                         Computer&          Laboratoiy &       6. College
                         Internet and       Radiological       authoritie;
      & Laborato1y       Recreation         investigµtiom      could not
      invcstigatim       room are not       provided by        provide
      workload is        available.         Institute m-e      any
      inadequate.        6. Nurses'         inflated.          evidence
      Separate           Hostel:            8.0PD              for more
D
      register for       Available          attendance         than 5
      L1bomtory          accomrnodati o data provided          111RJOr
      investigatiu1 is   n is for 44        by Inst itutc      op erat ions
      not tm1ilable.     against            are inflnted.      on the date
      9.Histopatl1olog   i:equirement of 9. Otl1er             of
      y&                 48.                deficiencies       assessment.
E     Cytopathology      7.MEU:             as pointed         7&8. The
      workload is        Infrastructure     out in tl1e        Data
      NIL on day of      facility in MEU assessment            Laboratory
      assessn1ent.       is not adequate. report.              &
      10. ICUs:          There is no        minor              Radiologic
      !CCU !:eds are     computer                              al
F     not available.     internet facility.                    investigatio
      MICU&ICCU                                                ns provided
      are ccmmon                                               by the
                                                               Institute in
                                                               front of
                                                               hearing
G                                                              committee
                                                               was not
                                                               satisfactory




H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                769
EDUCATION HALD!A (!CARE) v. U.O.I. [D!PAK MISRA, CJI]

        14. Assailing the decisions of the MCI and the Central Government, A
it is submitted by Dr. Rajcev Dhawan, learned senior counsel appearing
for the petitioner No.! and Mr. R.S. Suri, learned senior counsel for the
petitioner No. 2 submit that the institution was found fully compliant as
per the inspection made on 03.02.2017 and surprise inspections carried
out on 17.03.2017 and 18.03.2017 and the said inspections have to be
                                                                               B
understood in law as assessment for grant of recognition under Section
 11(2) of the Act and compliance verification assessment for rcnewalof
permission for admission of 6'" batch (JOO seats) of MBBS course
under Section I 0-A of the Act and hence, further inspection on 24.04.2017
has no legal acceptation. That apa11, submits Dr. Dhawan, the initial
communication of the MCI though made within 11 days of the inspection, c
it, despite its obligation to obtain the approval of the Oversight Committee,
had debarred the institution from admitting students and encashing the
bank guarantee which exhibits absolute arbitrariness and makes the
decision wholly vulnerable. It is contended that the recommendation
made was contrary to the fact situation and, therefore, to justify its stand,
                                                                               D
the assessors of the MCI being so directed carried out routine assessment
which is neither supportable in law nor does it stand to reason. Learned
senior counsel is extremely critical of such kind of inspection because it
does not follow any procedure and reveals the pre-determined mind of
the assessors and, in any case, the object of the MCI, as is evident, was
 to prove its point and not to objectively perceive things so that the medical E
education in this country can achieve real stability. He has reforred to
the compliance report of 12.04.2017 as it would be indicative of the fact
 that the deficiencies have been rectified. It is pnt forth by Dr. Dhawan
 that the Central Government despite the order passed by this Court in
IQ City Fo1111dation & Anr. v. Union ofIndia a11d Ors.' has not really
                                                                               F
 kept itselfalive to the principles stated by this Coui1 and acted not only
 unreasonably but in a high-handed manner. Learned senior counsel would
submit that the order dated 29.08.2017 deserves to be axed because it is
cryptic and unreasonable as it has not taken into account the materials
submitted before the Hearing Committee in the form of attendance record,
salary statements, Forms l 6A (TDS), clinical records and certain other G
documents which speak eloquently about the compliance of initial
 deficiencies pointed out by the assessors. It is urged by him that the
 whole action of the MCI is malafide and is incapable of withstanding
 scrutiny.
'(2017) 8 SCALE 369                                                          H
770             SUPREME COURT REPORTS                            [2017] l l S.C.R.


A             15. Refllting the submissions of Dr. Dhawan, it is contended by
      Mr. Vikas Singh, learned senior counsel along with Mr. Gaurav Sharma,
      learned counsel appearing for the MCI contended that the aspersions
      made by the petitioners on the inspection held on 24.04.2017 do not
      deserve consideration since it is the duty of the MCI to sec that the
      institutions remain ever compliant. Attribution of malaflde is absolutely
B
      unwarranted, f<l>r the assessors of MCI had gone on surprise verification
      as the College submitted the compliance report which stated that the
      deficiencies had been removed. Learned senior counsel would submit
      that the experts enJOY great reputation in their field and the bald allegations
      should not be allowed to destroy the basic purpose for which the inspection
c     is meant for and il is the statutory responsibility of the MCI to scrutinize
      at the spot about the due compliance report. Placing reliance on certain
      authorities which we shall refer to in due course, contends Mr. Singh,
      that a minute inspection of the contents of the report is not permissible in
      law unlcssprimafacie it is reflective of total unacceptability or perversity.
      The learned counsel has drawn the distinction between Letter of
D
      Permission at the commencement of the college and at a renewal stage
      and further at tile final recognition stage. He has pressed into service
      the language employed in the provisions of the Act and the Establishment
      of Medical College Regulations, 1999 (for short. "the Regulations")
      framed under the said Act lo strengthen the stand that an institution
E     having deficiencies which arc unacceptable cannot be extended the
      benefit ofrccoglfition. It is his further contention that an institution which
      is granted LOP for the initial establishment, certain deficiencies to some
      extent be ignored but as it moves from initial stage to another the
      yardsticks that apply are more rigorous.
F          16. Mr. Manindcr Singh, learned Additional Solicitor General
    defending the order passed by the Central Government canvassed lhat
    the order in present incarnation cannot be characterized as an unreasoned
    one because it has chronologically referred to the background and taken
    note of the Oversight Committee which consists of eminent doctors as
    per the decision of this Court passed by the Constitution Bench in Writ
G Petition (Civil) No. 408 of2017 titlcdA111111a Chandravati Ed11catio11al
    a11d Charitable Trust and others v. Union of India and another. It is
    argued by him that when the eminent doctors have evaluated all the
    verification inspection reports and arrived at the conclusion and the Central
    Government concurred with it by taking note of every facet to call it an
H . unreasoned order is not only unfair but, in a way uncharitable.According
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                     771
EDUCATION HALDIA (!CARE) v. U.O.l. [DIPAK MISRA, CJ!)

to Mr. Singh, the recommendations made by the MCI being well                      A
considered and based on materials have been accepted by the respondent
No. land in such circumstances the order passed by it should be treated
as impeccable, warranting no interference.
       17. We have already narrated the facts in a chronological manner.
What grieves the petitioners is the inspection caused on 24.04.2017.              B
The gmvamen of the proponement is that the said inspection in the name
of verification is an outcome of ma/ajides and hence, legally illegitimate.
The stance taken to pyramid the point is that it is not permissible und.cr
the Act or the Regulations, and the assessors nominated by the MCI
have carried out inspection not only in total violation of principles of          C
natural justice but also totally abandoning their sense of objectivity. As
ihe chronicle of the factual score would depict, the institution had filed a
"compliance report" on 12.04.2017. The said compliance report referred
to communication of MCI dated 28.03.2017 in respect of grant ofrenewal/
approval to the petitioner College. The said report after mentioning about
the minor deficiencies pointed out by the assessors stated:                       D
        "So far as the deficiencies pointed out by the assessors after
        their assessment of infrastructures on l 7I l 8 March, 2017 vi de
        their report in Format A-II is concerned, they arc not in major
        natures which may justify denial of grnnt of recognition. They
        arc not in respect of staff: space, equipment, college/hospital           E
        and clinical material. It is not pmctical to insist for a fnll proof or
        absolute adherence to all requirements without regard to their
        importance for the purpose of imparting education, in a practical
        way. However, since we have already removed the deficiencies
        a compliance report in tabular form is being submitted herewith.
        It is important to mention here that the Assessors have not found         F
        any deficiency in teaching staff. They have pointed out in their
        report sh01iagc of 3.8% teaching faculty and l.5% of resident
        doctors which are permissible as per MCI rules.
        Under the facts and circumstances mentioned above, you are
        requested to kindly accept the compliance report and if deemed            G
        necessary grant personal hearing to us in the matter for the ends
        of natural justice."
       Be it noted, the compliance report contained annexures and the
soft copy in word format and in CD. At this juncture, as the MCI would
contend. it felt the necessity to conduct a surprise inspection to satisfy        H
772            SUPREME COURT REPORTS                          (2017] l l S.C.R


A     itself as regards the compliance on 24.04.2017. We already have
      reproduced the same.
             18. To appreciate the controversy in apposite perspective, it is
      extremely crucial to understand the scheme of the Act and how the
      same has been understood and appreciated by this Court. Section 3 of
B     the MCI Act deals with constitution and composition of the MCI. Section
       10 provides the constitution of the Executive Committee and further
      stipulates that in addition to the powers and duties conferred and imposed
      upon it by the Act, the Committee shall exercise and discharge such
      powers and duties as the Council may confer or impose upon it by
      Regulations which may be made in that behalf. Section l 0-A( I) provides
 c    for pc1mission for establishment of new medical college and new course
      of study. It stipulates that notwithstanding anything contained in the Act
      or any other law for the time being in force, no person shall establish a
      medical college or no medical college shall open a new or higher course
      of study or training including post-graduate course of study or training or
D     increase its admission capacity in any course of study or training except
      with the previous permission of the Central Government obtained in
      accordance with the provisions of the said section. Section I 0-A(2) lays
      the postulate that every person or medical college shall, for the purpose
      of obtaining permission under sub-section (I), submit to the Central
      Government a scheme in accordance with the provisions of clause (b)
 E    of Section 3 and the Central Government shall refer the scheme to the
      MCI for its recommendations.
             19. Sub-section (3) and sub-section (7) of Section I 0-A deal with
      the role of the MCI on receipt ofa scheme. Sub-section (3), (4) and
      sub-section (7) of Section I 0-A read as follows:
 F
              "(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-

 G            (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.

 H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                               773
 EDUCATION HALDIA (ICARE) v. U.0.1. [DIPAK MISRA, CJ!]

     (b) consider the scheme, having regard to the factors referred         A
     to in sub-section (7) and submit the scheme together with its
     recommendations thereon to the Central Government.
     x        x                x                 x                 x
     (7) The Council, while making its recommendations under clause
     (b) of sub-section (3) and the Central Government, while passing       B
     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,   c
     would be in a position to offer the minimtim standards of medical
     education as prescribed by the Council under section l 9A 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       D
     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          E
     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         F
     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                G
     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;


                                                                            H
774            SUPRIEME COURT REPORTS                        [20!7] I l S.C.R.


A             (f) the requirement of manpower in the field of practice of
              medicine; and
              (g) any other factors as may be prescribed."
           20. Sub-section (4) of Section 8 deals with the power of the Central
      Government. It reads :
B
              '"(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-
c             section (7), either approve 4 (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 ( l ):
              Provided that no scheme shall be disapproved by the Central
              Government except after giving the person or college concerned
D             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 prpvisions of this section shall appl) to such scheme, as
E             if such scheme has been submitted for the first time under sub-
              section (2)."
             21. Section, 10-A has been interpreted in Royal Medical Trust
      (Registered) and A11r v. Union of India & A11r'. The said decision
      also reflects on the Regulations framed by the MCI. The Court has
 F    ruled that the MCI and the Central Government, having vested with the
      monitoring powers under Section I 0-A of the Act, they arc required to
      show due diligence right from the day when the applications arc received
      and the schedule giving various stages and the time limit must
      accommodate every possible eventuality and at the same time must
      comply with the requirement of observance of principles ofnaturaljustice
G
      at various levels. The Conrt, in this regard, has expressed thus:
              "31. MCI and the Central Government have been vested with
              monitoring powers under Section 1OA and the Regulations. It is
              expected of these authorities to discharge their functions well
      ------
H     '(2UJ5)10SCC:l9
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                               775
EDUCATION HALDIA (!CARE) v. 0.0.I. [DIPAK MISRA, CJ!]

     within the statutory confines as well as in conformity with the A
     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 scats had risen,
     obviously because of permissions granted for establishment of B
     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 oppo11unity
     to the students community but at the same time caused loss to
     the society in terms of less number of doctors being available.
     MCI and the Central Government must therefore show due C
     diligence right from the day when the applications arc 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
                                                                          D
     take care of:
     (A) Initial assessment of the application at the first level should
     comprise of checking necessary requirements such as esscntiality
     certificate, consent for affiliation and physical features like land
     and hospital requirement. If an applicant fails to fulfil these
     requirements, the application on the face of it, would be              E
     incomplete and be rejected. Those .vho fulfil the basic
     requirements would be considered at the next stage.
     (B) Inspection should then be conducted by !he Inspectors of
     MCI. By very nature such inspection must have an clement of
     surprise. Therefore sufficient time of about three to four months      F
     ought to be given to 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 arc always in place and not borrowed or put in
     temporarily.                                                           G
     (C) Intimation of the result or outcome of the inspection would
     then be communicated. If the infrastructure and facilities arc in
     order. the medical college concerned should be given requisite
     permission/renewal. However, if there arc any deficiencies or
                                                                            H
776             SUPREME COURT REPORTS                          ~2017] ll S.C.R.




A             shortcomings. MCI must, after pointing out the deficicnc1cs, grant
              to the college concerned sufficient time to report compliance.
              (0) If compliance is reported and the applicant states that the
              deficiel)cies stand removed, MCI must cause compliance
              verification. It is possible that such compliance could be accepted
B             even without actual physical verification but that assessment be
              left entirely to the discretion of MCI and the Central Government.
              In cases where actual physical verification is required, MCI and
              the Centpl Government must cause such verification before the
              deadline,.

c             (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 npt been removed, the applicant will stand discntitled so
              far as tl~at academic year is concerned."

D           The aforesaid authority makes it clear as day that the surprise
      inspection is conceived ofwithin the scheme of the Act and the institution/
      college is required to remain compliant.
             22. In Mai11oliar Lal S/iarmt1 v. Medical Council of llldiu &
      Ors.'. it has been ruled that the MCI on the basis of the reports regular
E     compliance is legally obliged to form an opinion with regard to the capacity
      of the College to provide necessary facilities in respect of staff,
      equipments, accommodation, training and other facilities to ensure proper
      functioning of the medical college or for increase of admission capacity.
      In the said case, the Court while dealing with the surprise inspection, has
      expressed thus:-
 F
              "24. Surprise inspection, in this case. was conducted to ascertain
              whether compliance report could be accepted and to ascertain
              whether the deficiencies pointed out in the regular inspection
              were rectified or not. By pointing out the deficiencies, MC! is
              giving an opportunity to the College to rectify the deficiencies, if
G             any noticed by the inspection team. It is the duty of the College
              to submit the compliance report. after rectifying the deficiencies.
              MCI can conduct a surprise inspection to ascertain whether the
              deficicnCies had been rectified and the compliance repo11 be
              accepted or not."
      ------
H     ' <201 JJ 10 sec 60
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                    777
EDUCATION HALDIA (!CARE) v. U.0.1. [DIPAK MISRA, CJ!]

Eventually, the Court held:                                                      A
       "27. We are also of the view that such an order is not vitiated by
       violation of principles of natural justice, especially, when no
       allegation of bias or mala fide has been attributed against the
       two doctors who constituted the inspection team, which conducted
       the surprise inspection on 6-7-2013. When the inspection team             B
       consists of two doctors of unquestionable integrity and reputation.
       who are experts in the field. there is no reason to discard the
       report of such inspection. In such circumstances, we are of the
       view that MCI has rightly passed the order rejecting the approval
       for renewal of permission for the third batch of 150 MBBS
       students granted for the academic year 2013-2014."                        c
                                                         [Emphasis added]
       23. In this context, Mr. Vikas Singh. learned senior counsel for
the MCI, bas drawn our attention to Regulation 7 which deals with the
report of the MCI. .He has also drawn our attention to Regulation 8 that         D
pertains to grant of permission by the Central Government. Regulation
8, has been amended on 8.2.2016 and 8.3.2016. We think it appropriate
to extract the relevant clauses:
        "( l) The Central Government, on the recommendation of the
        Council for Letter of Permission, may issue a letter to set up a         E
        new medical college with such 18 conditions or modifications in
        the original proposal as may be considered necessary. This letter
        can also include a clear cut statement of preliminary requirements
        to be met in respect of buildings, infrastructural facilities, medical
        and allied equipments, faculty and staffbefore admitting the first
        batch of students. The formal permission may be granted after            F
        the above conditions and modifications are accepted and the
        performance bank guarantee for the required sums arc furnished
        by the person and after consulting the Medical Council oflndia.
        (2) The formal permission may include a time bound programme
        for the establishment of the medical college and expansion of            G
        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."

                                                                                 H
778            SUPREME COURT REPORTS                         [2017] l l S.C.R.


A           24.Sub-clause (3)(1) provides that:
             "( 3)( l) The permission to establish a medical college and admit
             students may be granted initially for a period of one year and
             may be ¢newed on yearly basis subject to verification of the
             achievements of annual targets. lt shall be the responsibility of
B            the pcrsgn to apply to the Medical Council of India for pumosc
             of renewal six months nriorto the expity of the initial permission.
             This process ofrenewal of permission will continue till such time
             the esta~lishment of the medical college and expansion of the
             hospital facilities arc completed and a formal recognition of the
             medical college is granted. Further admissions shall not be made
c            at any stage unless the requirements of the Council arc fulfilled.
             The Central Government may at any stage convey the
             deficiencies to the applicant and provide him an opportunity and
             time to r~ctify the deficiencies."
                                                         [Underlining is by us]
D
            25. Yidc Gazette Notification dated 18.3.2016, clause 8(3)(( I )(a)
      was substituted thus:
             "(a) Colleges in the stage ofLetterof Permission upto II renewal
             (i.e. Adnjlission of third batch)
 E            !fit is observed during any inspection/assessment of the institute
              that the meficiency of teaching faculty and/or Residents is more
              than 30% and/or bed occupancy is< 50% (45% in North East,
              Hilly terrain, etc.). compliance of rectification of deficiencies
              from such an institute will not be considered for issue of Letter
              of Permission (LOP)/rcncwal of permission in that Academic
 F
              Year."

            26.Clausc 8(3)(l)(b) was also substituted which reads thus:
              "(b) Colleges in the stage of III & JV renewal (i.e. Admission
              of fourth & fifth batch)
 G            If it is observed during any inspection of the Institute that the
              deficiency of teaching faculty and I or Residents is more than
              20% and I or bed occupancy is< 65% compliance of rectification
              of deficiencies from such an institute will not be considered for
              renewal of permission in that Academic Year."
H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                  779
EDUCATION HALDIA (!CARE) v. U.0.1. [DIPAK MISRA, CJ!)

      27.Clause 8(3)(l)(c), after the amendment, reads as follows:              A
       "(c) Colleges which are already recognized for award of
       M.B.B.S. degree and I or running Postgraduate courses.
       lfit is observed during any inspection I assessment of the institute
       that the deficiency of teaching faculty and I or Residents is more
       than I 0% and I or bed occupancy is < 70% compliance of                  B
       rectification of deficiency from such an institute will not be
       considered for issue of renewal of permission in that Academic
       Year and fu1thcr such an institute will not be considered for
       processing applications for Postgraduate courses in that Academic
       Year and will be issued show cause notices as to why the                 c
       recommendations for withdrawal ofrecognition ofthc courses
       run by that institute should not be made for w1dergraduate and
       postgraduate courses which arc recognized u/s 11(2) of the IMC
       Act, 1956 along with direction of stoppage of admissions in
       permitted postgraduate courses."
                                                                                D
       "However, the office of the Council shall ensure that such
       inspections are not carried out at least 2 days before and 2 days
       after important religious and festival holidays declared by the
       Central/State Govt."
      28. Clause (4) is as follows:                                             E
       "(4)   The Council may obtain any other information from the
       proposed medical college as it deems fit and necessary.
       RECONSIDERATION                                                        ,,.
       Wherever the CoW1cil in its report has not recommended the
                                                                                F
       issue of Letter of Intent to the person, it may upon being so
       required by the Central Government reconsider the application
       and fake 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."                                                 G
      29. Regulation 8(3)(1) has been added by Gazette Notification
dated 08.02.2016 which stipulates that permission to establish a medical
college and admit students may be granted initially for a period of one
year and may be renewed on an yearly basis subject to verification of
                                                                                H
780            SUPREME COURT REPORTS                           [2017] l I S.C.R.


A     the achievement of targets. It also provides that the process of renewal
      of permission to continue till such time the establishment of the medical
      college and expansion of the hospital facilities are completed, and
      thereafter a formal recognition of the medical college is granted. It
      clearly lays dowo that further admission shall not be made at any stage
      unless the requirements of the Council am fulfilled and the Central
[l
      Government may at any stage convey the deficiencies to the college
      and provide an opportunity and time to rectify the deficiencies.
            30. Sub-section (3 )(I) contains certain provisos. They read as
      follows:-

c             .. PROVIDED that in respect of
              (a) Colleges in the stage upto II renewal (i.e. Admission
              of third batch):
              If it is observed during any regular inspection of the institute that
              the deficiency of teaching faculty anU/or Residents is more than
D             30% anU/or bed occupancy is 60 %, such an institute will not be
              considered for renewal of permission in that Academic Year.
              (b) Colleges in the stage from III renewal (i.e. Admission
              of four! 1 batch till rceo0 nition of the institute for award of
              M.B;B. '. degree:
E
              If it is observed during any regular inspection of the institute that
              the deficiency of teaching faculty an<Vor Residents is more than
              20% anU/or bed occupancy is< 70 %, such an institute will not
              be considered for renewal of permission in that Academic Year.
              19
 F
              ( c) Colleges which arc already recognized for award of
              M.H.B.S. degree and/or running Postgraduate Courses:
              !fit is observed during any regular inspection of the institute that
              the deficiency of teaching faculty and/or Residents is more than
              I 0% and/or bed occupancy is< 80%, such an institute will not
G
              be considered for processing applications for postgraduate
              courses in that Academic Year and will be issued show cause
              notices as to why the recommendation for withdrawal of
              recognition of the courses run by that institute should not be
              made for Undergraduate and Postgraduate courses which are
H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                 781
EDUCATION HALDIA (!CARE) v. U.O.l. (DIPAK MISRA. CJI]

       recognized u/s l 1(2) of the IMC Act, 1956 along with direction        A
       of stoppage of admissions in permitted Postgraduate courses.
        (d)     Colleges which arc found to have employed
        teachers with faked/forged documents: .
       If it is observed that any institute is found to have employed a
       teacher with faked/forged documents and have submitted the             B
       Declaration Form of such a teacher, such an institute will not be
       considered for renewal of permission/recognition for award of
       M.B.B.S. degree/processing the applications for postgraduate
       courses for two Academic Years - i.e. that Academic Year and
       the next Academic Year also.                                           c
        However, the office of the Council shall ensure that such
        inspections are not carried out at least 3 days before upto 3 days
        after important religious and festival holidays declared by the
        Central/State Govt.
         (2) The recognition so granted to an Undergraduate Course for        D
        award of MBBS degree shall be for a maximum period of 5
        years, upon which it shall have to be renewed.
        (3)     The procedure for 'Renewal' of recognition shall be
        same as applicable for the award of recognition. (4) Failure to
        seek timely renewal of recognition as required in subclause (a)       E
        supra sha II invariably result in stoppage of admissions to the
        concerned Undergraduate Course of MB BS at the said institute."
      As is evincible, the aforesaid Regulations deal with various stages
and the requirements under Section 10-A and Section 11 (2) of the Act.
                                                                              F
        31. The aforesaid Regulations, as we perceive, deal with !he
compliance verification. In the instant case, after the College submitted
that it had complied with deficiencies pointed out by the team ofasscssors,
the MCI thought it necessary to have an inspection. It is not in dispute
that the said inspection was a surprise inspection and further it was, as
the MCI perceived, required to be done to verify whether the institution      G
was really compliant or not. In the verification report dated 24.04.2017,
as the assessors have pointed out, there are number of deficiencies.
     32. The stand of the petitioners is that such verification is
impermissible and grossly malajide. In IQ City Fo1111dutlon (supra),
                                                                              H
782             SUPREME COURT REPORTS                          (2017] 11 S.C.R.


A     the three-Judge Bench, after referring to the authonty in Royal J'.fedical
      Trust (supra) has held that the emphasis on the compliant institutions
      that can really educate doctors by imparting quality education so that
      they will have inherent as well as the cultivated attributes of excellence.
      There can be no scintilla of doubt that an institut10n that imparts medical
      education has to remain ever compliant. It is necessary to mention here
B
      that in IQ City Foundation (supra). a contention was advanced that
      when the Centdl Government sends back the matter to the MCI for
      compliance verification, the power of the MCI is restricted and it is only
      required to inspect the aspects for which the matter has been referred
      back by the Central Government. Negativining the said contention, the
c     Court has held :
              "On a r~ading of Section I 0-A of the Act, Rules and the
              Regulations, as has been referred to in Mano/lar Lal Sharma
              (supra), and the view expressed in Royal Medical Trust (supra),
              it would be inappositc to restrict the power of the MCI by laying
D             down as an absolute principle that once the Central Government
              sends back the matter to MCI for compliance verification and
              the Assessors visit the College they shall only verify the mentioned
              items and turn a Nelson's eye even if they perceive certain other
              deficiencies. It would be playing possum. The direction of the
              Central Qovcrnment for compliance verification report should
E             not be construed as a limited remand as is understood within the
              framework of Code of Civil Procedure or any other law. The
              distinetiqn between the principles of open remand and limited
              remand, we arc disposed to think, is not attracted."
         33. The aforesaid passage lays stress how the educational
F institutions are to be compliant to have the requirements as per the Act
  and the Regulations and not to take shelter under a subterfuge or lean
  upon a contrived situation to exhibit justification. Thus analysed, the
  grievance agitated pertaining to surprise inspection with keen acumen
  does not commend acceptance. The attack on the compliance report on
G asseverations of ma/a fide, if we allow ourselves to say so, does not
  deserve acceptance. Whether there is ma/a fide or not, depends upon
  the facts and circumstances of the case as has been held in State of
  Bilwr v. P.P. Sharma, /AS & A11r.' Mere allegation of malafide docs
  not vitiate an enquiry or proceeding. As we sec, in the instant case. the

H     ' 1992 Supp.(!) sec 222
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                 783
EDUCATION HALDIA (!CARE) v. U.0.1. [DIPAK MISRA, CJ!]

allegations have been made against the assessors who are experts in the       A
field and we find no reason to attribute any kind of malice or malajide
to them. In the absence of any kind of material brought on record, the
mere allegations that there was a surprise inspection, within a fortnight,
would not make the inspection a tainted one. In this regard, we may
usefully refer to a passage from Medical Cou11cil of India v. Kaliuga
                                                                              B
Institute of Medical Sciences' :
        "Our attention was also drawn to the decision of this Court in
        Manohar Lal Sharma v. Medical Council oflndia wherein it was
        held (SCC p. 72, para 27) that since the inspection is taken by
        "doctors of unquestionable integrity and reputation, who are C
        experts in the field, there is no reason to discard the report of
        such an inspection". In the present appeal, there is no allegation
        made by KIMS of any ma la tides of the inspection team or any
        perversity in the inspection report and hence, there is no question
        of challenging the conclusions of a neutral, randomly selected
        inspection team in its assessment."                                 D
And again:
        "The High Court did not appreciate that the inspection was carried
        out by eminent Professors from reputed medical institutions who
        were experts in the field and the best persons to give an unbiased
        repmt on the facilities in KIMS. The High Court under Article         E
        226 of the Constitution was certainly not tasked to minutely
        examine the contents of the inspection report and weigh them
        against the objections ofKIMS in respect of each of its 18. items.
        In our opinion, the High Court plainly exceeded its jurisdiction in
        this regard in venturing into seriously disputed factual issues."     F
                                                     [Emphasis supplied]
     34. In Royal Medical Tr11st a11d a11other v. U11io11 of India and
another' this Court held:
        "Keeping in view the facts and circumstances of the case, we
                                                                              G
        sum up our conclusions and directions, thus:-
        ( a)   The petitioners are not entitled to Letter Of Permission
               (LOP) for the academic session 2017-2018. We direct that

'c2011i 11 sec 530
'2017 (I I) SCALE 307                                                         H
784           SUPR.lgME COURT REPORTS                        (2017] 11 S.C.R.



A                 the order passed in the present writ petition shall be
                  applicable hercatler for the academic session 2018-2019
                  sin~e the cut off date for admissions to MBBS course for
                  academic session 2017-2018 is over and the academic
                  session has commenced. No petition shall be entertained
                  from any institution/collcgc/socicty/trust or any party for
B
                  graµt of LOP for 2017-2018. We say so as the controversy
                  foq,;rant of LOP for the academic year 20l7-2018 should
                  come to an end and cannot become an event that defeats
                  time. The students who arc continuing their studies on the
                  basis of LOP granted for the academic year 2016-2017
c                 should be allowed to continue their studies in the college
                  and they shall be permitted to continue till completion of the
                  course.
             (b) The applications submitted for 2017-2018 shall be treated
                 as the application for 2018-2019 and the petitioners shall
D                keep the bank guarantee deposited with the Medical Council
                 of 1)1dia alive and the MCI shall not encash the same.
             (c) The Medical Council oflndia shall conduct a fresh inspection
                 as per the Regulations within a period of two months. It
                 shall apprise the petitioner-institution with regard to the
 E               deflcicncics and afford an opportunity to comply with the
                 same and, thereafter, proceed to act as contemplated under
                 the Act.
             (d) The inspection slmll be carried out for the purpose of grant
                 of LOP for the academic session 2018-2019.
 F           (c) Aller the Medical Council of India sends its recommendation
                 to the Central Government, it shall take the final decision
                 as per law after affording an opportunity of hearing to the
                 petitioners. Needless to say, it shall take the assistance of
                 the Hearing Committee as constituted by the Constitution
 G
                 Bench decision in A111111a Chandravati Educational and
                 Charitable Trust (supra) or other directions given in the
                 said decision."
            The aforesaid directions were issued keeping in view the
      deficiencies in the college therein and the interest of the students.
 H
INDIAN CENTRE FOR ADVANCEMENT OF RESEARCH AND                                 785
 EDUCATION HALDJA (!CARE) v. U.0.1. [DIPAK MISRA, CJ!)

      35. Jn Modha Medical College & Research l11stit11te v. U11io11          A
of India' the Court held:
       "At the same time. we are of the view that having regard to the
       facts which have transpired, the petitioner should be permitted
       to establish before MCI that it possesses the requisite
       infrastructure and has taken all necessary steps to remove the         B
       deficiencies which have been noted to exist. Such an exercise
       cannot be carried out in time for academic year 2017-18 since
       the last date for admissions has elapsed and the academic session
       commenced. Hence the petitioner cannot be permitted to
       participate in the counseling process for the ensuing academic
       year. Any such exercise would necessarily have to be for the ac
                                                                              c
       academic year 2018-19."
       36. In Major S.D. Si11glt Medical College a11d Hospital &
A11otlrer "· U11io11 of J111lia & another' it has been said:
        "Having regard to the interest of medical education and the D
        observations contained in the judgment delivered today by this
        Comt in W.P. (c) 674 of 2017 in Madha Medical College and
        Research Institute through its Managing Director v. Union of
        India, we decline to grant any relief in respect of academic year
        2017-18 to the petitioner ... "
                                                                              E
      37. In Karpagam Faculty of Medical Sciences & Research v.
Unio11 of India 1111d others 10 , it has been stated:
        "The benchmark and the minimum standards for these proposals
        arc bound to be different and we must presume that the expert
        body, such as MCI and the Hearing Committee in which one
                                                                              F
        member of the OC also participated, were fully aware of the
        csscntialities and pre-conditions for grant ofrecognition/approval.
        Since the decision of the Competent Authority of the Central
        Government is based on such inputs, it is not open for us to sit
        over that decision as a Court of appeal."
                                                                              G
      38. In A1111aii Medical College & Ho.\pital a11d A11r. v. U11io11
of btdia a11d a11otlrer, Writ Petition (Civil) No. 525 of2017, the Comt
8
  2017 (11) SCALE 330
'2017 (11) SCALE 372
'" 2107 (11) SCALE 435
                                                                              H
786             SUPREME' COURT REPORTS                        [2017] l l S.C.R.



A     referred to the decision in Varunarj11n Trust and Anr. v. Union of
      India and Ors. 11 and directions have been issued as in Royal Medical
      Trust' (supra).
             39. As nolted earlier, an institution has to remain compliant and
      necessity for r~maining compliant becomes more important as the
B     institution enters the renewal year and thereafter for grant of approval
      and recognition under Section l l (2) of the Act. At the time of
      consideration of recognition, the compliance is viewed and scrutinized
      with great ngour and strictness. What may be treated as a minor
      deficiency at the initial stage may not remain so when the institution/
      college proceeds from year to year. In the instant case, we have already
c     held that surprise inspection in law is permissible and the said inspection
      is not tainted with ma/a fide, as alleged. Once we arrive at snch
      irresistible conc1L1sion, the order passed by the Central Government with
      the assistance of the Hearing Committee cannot be flawed.
             40. Though we have so held, we think it appropriate to direct that
D     the students who have been admitted in the respective courses shall be
      permitted 10 continue in the courses and the students who pass out from
      the institution, t~e MCI shall see to it that they arc conferred degrees.
      The MCI is dircotcd to conduct an inspection for recognition keeping in
      view the acade11JJic year 2018-19 and if during the inspection any
 E    deficiency is noticed, the same shall be intimated to the petitioner No. 2
      institution and thereafter, process shall be carried out keeping in view
      the principles of natural justice in mind and the principles stated in IQ
      City Foundation (supra). The inspection shall be carried out as per the
      schedule by the MCI for grant of recognition for the academic year
      2018-2019 and to avoid any kind ofuncallcd for situation, the application
 F    submitted for the academic year 2017-2018 shall be treated as application
      for the academic year 2018-2019. The bank guarantee furnished by the
      institution shall not be cncashcd by the MCI and the petitioners shall
      keep it alive.
            4 l. The Writ Petition is, accordingly, disposed of. There shall be
 G    no order as to costs.


      Kalpana K. Tripathy                                       Pi:tition dispost.'<l of.


      "W.P. (C) No. 787 of2017, decided on 12.09.2017


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