SARASWATI EDUCATIONAL CHARITABLE TRUST AND ANR.versusUNION OF INDIA AND ANR.

                             [2017]9 S.C.R.392


A         SARASWATI EDUCATIONAL CHARITABLE TRUST
                         AND ANR.
                                         v.
                       UNION OF INDIA AND ANR.
B                     (Writ Petition (C) No. 515of2017)
                           SEPTEMBER 0 I, 2017
           [DIPAK MISRA, CJI, A. M. KHANWILKAR AND
                     DR. D.Y. CHANDRACHUD, JJ.J
          Education/Educational Institutions:
c           Writ Petition u/Art. 32 of Constitution - Challenging order
     dated 31. 05. 2017 passed by Central Govemment, whereby
    petitioner-medical college was debarred ji·om admitting students in
    MBBS course for academic sessions 2017-18 and 2018-lY -
    Supreme Court directed the Central Government to reconsider the
D    issue of letter ofpermission, by re-evaluating the views ofthe Medical
    Council of India (MCI), Hearing Committee, DGHS and Oversight
    Commillee - Hearing Commillee recommended not to permit
    admission - Competent Authority accepted the recommendations
     by order dated 10.08.2017 - Petitioners challenged this order by
E   filing interlocutory application - Held: The deficiencies in respect
     of/acuity reported in the assessment report were not critical and
     were within permissible limits - MCI had already done inspection
    for issuance of Letter for Permission for academic Session 2017-18
    - Petitioners had objected to the second surprise inspection as the
    same was to be conducted after the cut-off date - While the report
F   of that inspection was pending for consideratio11, need for the
    second inspection has not been explained - Thus the petitioner-
    college fulfills the infrastructure and academic requirements and
    has already become functional from academic session 2016-17 -
    In the larger public interest, in exercise of power u/Art. 142 of the
G   Constitution, the petition and the application are allowed -
    Constitution of India - Arts. 32 and 142.
          Allowing the petition, the Court
         HELD: 1. The Oversight Committee in its communication
    dated 14.05.2017 has clearly noted that there was no major
H
                                   392
    SARASWATI EDUCATIONAL CHARITABLE TRUST v.                            393
                 UNION OF INDIA

deficiency. The deficiencies reported in the assessment r-eport A
in respect of faculty were only 1.5 % and residents 6.52 %. These
were within the acceptable limits. The petitioner-college has been
functioning from academic session 2016-17. Even the G9mpetent
Authority in the impugned decision has not opined that the
deficiencies noticed earlier were significant or critical. Such B
deficiencies by no standard can be said to be critical. The same,
as rightly observed by the Oversight Committee (OC), were
within permissible limits. [Para 9][400-E-G)
      2. The inspection for issuance of Letter of Permission for
academic session 2017-18 was duly carried out on 18. and 19th
November, 2016. The respondents are not correct in saying that c
no inspection in relation to academic session 2017-18 has been
carried out as of now. Indeed, the petitioners objected to the
second surprise inspection intended on 21'' and 22•d December,
2016 as the same was after the cut off date 15'h December, 2016.
The purpose for which the second surprise inspection became D
necessary, when the earlier report was pending consideration
and that too after the cut off date•l5'h December, 2016, has not
been explained or noted either by the Executive Committee in
its meeting held on 13'h January, 2017 or for that matter by the
Hearing Committee and more so by the Competent Authority of
the Central Government. Significantly, it is not a case where the E
college officials prevented the inspecting team from entering the
college. The petitioner college only placed their objection on
record as per the advice given to them that such inspection by
the MCI after the cut-off date was not permissible. The inspecting
team chose to leave the college without doing any inspection. F
The Competent Authority, however, mechanically acted upon the
recommendation of the MCI to debar the petitioner-college for
two years and authorised the MCI to encash the Bank Guarantee
of Rs.2 crores vide order dated 31" May, 2017. [Para 12][400-G-
H; 401-A-C)
                                                                         G
      3. The Hearing Committee as well as the Central
Government have failed to consider all the relevant aspects of
the matter and the conclusion reached by the said authorities is,
on the face of it, without application of mind, if not perverse. There
is nothing in the Regulations which expressly or for that matter
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394          SUPREME COURT REPORTS                      [2017] 9 S.C.R.


A by Implication prohibits the MCI from undertaking multiple
  Inspections. However, when that action Is questioned, It Is
  expected that the MCI must offer some justification for the
  second surprise Inspection when its Assessors had already carried
  out that exercise recently on 18" and 19" November, 2016 and
  submitted an elaborate report in the prescribed format In that
8
  regard. The Hearing Committee as well as the Competent
  Authority of the Central Government were expected to examine
  this aspect of the matter before taking any final decision, especially
  when the inspection report on record did not point out any
  deficiency except the marginal deficiency of faculty of 1.5% and
C residents of 6.52% which were obviously within the permissible
  norms. [Para 14)(405-F-H; 406-A-B]
        4. The Competent Authority has already confirmed the
  conditional permission granted to the college for the academic
  session 2016-17. but has not permitted the petitioner college to
D admit students in MBBS course for the academic session
  2017-18. Further, the impugned decision even if read as a whole,
  nowhere mentions the cause for the second inspection when only
  one month bac_k on 18" and 19" November, 2016 a proper
  inspection was done and a comprehensive report was submitted
  in that regard in the prescribed format and which was pending
E consideration before the MCI. This petition and the application
  filed by the petitioners are allowed. Directions are issued to the
  respondents as have been issued in the judgment of Dr. Jagat
  Narain's case. [Para 15)(406-C-F]
          Dr. Jagat Narain Subharti Charitable Trust and Anr. _v.
 F        Union of India and Ors. 2017 (10) SCALE 308 -
          referred to.
         5. The impugned decision is set aside to the extent it bars
   the petitioners to adm'it upto 150 students in the academic session
   2017-18. Instead, the respondents are directed to permit the
 G petitioner college to take part in the current year counselling
   process. The cut-off date for completing the admissions in respect
   of the petitioner college, however, is extended till 5th September,
   2017. The respondents shall forthwith make available students
   willing to take admission in the petitioner college through central
 H counselling in order of their merit. This direction is being issued
     SARASWATI EDUCATIONAL CHARITABLE TRUST v.                           395
                  UNION OF INDIA

in exercise of plenary powers of this Court under Article 142 of A
the Constitution of India, in the peculiar facts of the present case
to do complete justice and in larger public interest. [Para 16J[406-
G-H; 407-A)
      6. It is made Clear that the MCI or the Competent Authority
of the Central Government is free to inspect the petitioner college      B
as and when deemed fit ancl, if any deficiency is found after giving
opportunity to the petitioner college, may suitably proceed against
the college in accordance with law. [Para 16](407-B-C)
                        Case Law Reference
2017 (10) SCALE 308             referred to             Para 15          c
      CIVIL ORIGINAL JURISDICTION: Writ Petition (Civil) No.
515 of2017.
      Under Article 32 of the Constitution oflndia.
      Mukul Rohatgi, Kapil Sibal, Raju Ramachandran, C.A. Sundaram, D
V.Giri, Sr. Advs., Gaurav Bhatia, Utkarsh Jaiswal, Abhishek Singh,
Amitesh Kumar, Shashank Shekhar, Ms. Priti Kumari, Ms. Babita
Kushwaha, Mritunjay Kumar Sinha, Amit Kumar, Avijit Mani Tripathi,
Shaurya Sahay, G. Umapathy, Rakesh K. Sharma, Alco G. Rizario, Aditya
Singh, Advs .. for the Petitioners.
                                                                      E
      Maninder Singh, ASG, Vikas Singh, Ajit Kumar Sinha, Sr, Advs.,
Gaurav Sharma, Ms.Amandeep Kaur, Dhawal Mohan, Prateek Bhatia,
Sarad Kumar Singhania, Vipin Kumar, Deepak Goel, G.S. Makker,
Prabhas Bajaj, Ms. Aarti Sharma, Akshay Amritanshu, Advs. for the
Respondents.
                                                                      F
       The Judgment of the Court was delivered by
       A. M. KHANWILKAR, J. l. The petitioner Saraswati
Educational Charitable Trust, Ltlcknow, made an application to the
Ministry of Health & Family Welfare, Government of India, for
establishment of a new medical college at Unnao, Uttar Pradesh, in the   o
name and style of''Saraswati Medical College, Unnao, Uttar Pradesh",
for the academic session 2016-17. That application was forwarded to
the Medical Council ofindia for evaluation and making recommeridations
to the Ministry under Section lOA of the Indian Medical Council Act,
 1956, for academic session 20 J6- J7.
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396           SUPREME COURT REPORTS                         [20 l 7] 9 S.C.R.


A         2. The petitioners have filed this writ petition under Article 32 of
  the Constitution ofindia assailing the order dated 3 I" May, 2017, passed
  by the Union of India, respondent No. I herein, whereby the petitioner
  college has been debarred from admitting students in MBBS course for
  the academic sessions 2017-18 and 2018-19 and fu1ther permitting
  respondent No. 2 Medical Council of India to encash Bank Guarantee
B
  of Rs.2 crores furnished by the petitioners. This Comt pronounced its
  judgment on I" August, 2017 in group of cases involving similar issues,
  in the following terms:
          "24. Having regard to the fact that the Oversight Committee
          has been constituted by this Court and is also empowered to
 c        oversee all statutory functions under the Act, and further all
          policy decisions of the MCI would require its approval, its
          recommendations, to state the least, on the issue of
          establishment of a medical college, as in this case, can by no
          means be disregarded or left out of consideration. Noticeably,
 D        this· Court did also empower the Oversight Committee to issue
          appropriate. remedial directions. Jn our view. in the overall
          perspective, the materials on record bearing on the claim of
          the petitioner institutions/colleges for confirmation of the
          conditional letters of permission granted to them require a
          fresh consideration to obviate the possibility of any injustice
 E         in the process.
           25. Jn the above persuasive premise, the Central Government
           is hereby ordered to consider aji·esh the materials on record
           pertaining to the issue of confirmation or otherwise of the
           letter of permission granted to the petitioner colleges/
 F         institutions. We make it clear that in undertaking this exercise,
           the Central Government would re-evaluate the
           recommendations/views of the MCI, Hearing Committee.
           DGHS and the Oversight Committee, as available on records.
           It would also afford an opportunity of hearing to the petitioner
 G         colleges/institutions to the extent necessary. The process of
           hearing and final reasoned decision thereon, as ordered.
           would be completed peremptorily within a period of JO days
           from today. The parties would unfailingly co-operate in
           compliance of this direction to meet the time fi'ame fixed.,.

 H
     SARASWATI EDUCATIONAL CHARITABLE TRUST v.                             397
        UNION OF INDIA [A. M. KHANWILKAR, J.]

      3. Pursuant to the liberty granted to the petitioners by the A
aforementioned order, the petitioners submitted a fresh detailed
representation to respondent No. I, pointing outthat the petitioners have
complied with all the conditions specified by the Oversight Committee
("OC" for short) constituted by this Court, as noted in the letter granting
permission for academic session 2016-17. The petitioner college was
                                                                            8
given an opp9rtunity of being heard by the Hearing Committee on 3rd
August, 2017. During the hearing, the petitioners pointed out the
observations made by the OC as noted in its letter dated 14.5.2017:
      "The EC did not bring out any deficiency either from
      assessment reports dated 18'" - 19'" Nov. 2016 or 2I" - 22""
      Dec. 2016, though they had considered both the reports in C
      their meeting on 13.01.2017..
      Even then the College had represented against the
      observations made by the assessors in their assessment report
      dated 18'" -1911' Nov. 2016.
      The deficiencies reported in the assessment report in respect D
      of faculty is 1.5% and residents is 6.52% and are within
      acceptable limits. The other deficiencies are sub)ec;tive. No
      MSR.
      LOP Confirmed. "
        4. The petitioners had demonstrated before the Hearing Committee   E
that the deficiencies noticed earlier were insignificant and within the
permissible norms. With regard to the core matters, regarding
infrastructure and academics, all facilities required as per norms were
fulfilled by the petitioner college.
       5. The Hearing Committee, after considering the records and oral F
and written subm(l;sions of the petitioner college, submitted its report to
the Ministry for consideration. The Competent Authority of the
Government of India accepted the recommendations of the Hearing
Committee, not to permit admission of students in the MBBS course for
the academic session 2017-18 and that the petitioner college should apply
afresh for renewal of permission for academic session 2018-19 as per G
MCI Regulations. The reason which weighed with the Competent
Authority of the Government oflndia can be discerned from paragraphs
 17 and 18 of the impu~ed Communication-cum-Order dated l o•h August,
2017, issued under the signature of the Under Secretary to the
Government of India. The same read thus:
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398      SUPREME COURT REPORTS                       [2017] 9 S.C.R.


A     ''xxx                         xxx                         xxx
      17. Now, in compliance with the above direction the Hon 'hie
      Supreme Court dated 1.8.2017, the Ministry granted hearing
      to the college on 03.08.2017. The Hearing Committee after
      consideri11g·the records and oral and written submission of
8     the college submitted its reports to the Ministry. The
      observation of hearing committee is as under:
       The college submitted that MCI conducted compliance
       verification as per OC orders on 18-19 November 2016.
      Howeve1; without assigning any reason, MCI visited the
c     college again on 21 December, 2016 to re-inspect. Jn the
      submission of the college, since MCI was required to conduct
      compliance verification only once for confirmation of LOP
      for 2016-17, it did not allow the 2"d inspection to happen.
       The college representatives also informed that on the day i.e.
      21.12.2016 they contacted OC over telephone. it was informed
D     by OC that MCI was authorized for only one inspection. The
      college was asked if they obtained the same confirmation from
       OC in writing to which they replied in the negative.
      After the November inspection the college vide letter dated
      20.11.2016 i·aised its objection with the OC that they were
E     not allowed to put the dissent note by the assessor and this
      was prejudicial to the college. They also informed the OC
      about the date for major and minor surgeries with photo and
      video proofs. They also submitted other information pertaining
      to OPD, investigations to the OC.
F     It is also seen trom November SAF report that there was facultv
      deficiency of 1.5% only and residents deficiency of 6.52%.
      The college did not submit any compliance since as per its
      version neither MCI nor OC conveyed anv deticiencv to it.
      In the opinion of the Committee, MCI was not precluded from
G
       conducting inspection subject to sufficient reason and
      justification. But no adverse comments such as the college/
       hospital was closed has been made by the assessor during
       the 2"4 visit to the college. The November inspection had no
       major deficiencies.
H
    SARASWATI EDUCATIONAL CHARITABLE TRUST v.                            399
       UNION OF INDIA [A. M. KHANWILKAR. J.]

      In the peculiar facts of the case. the Committee recommends        A
      that LOP for 2016-17 mav be confirmed. No fresh batchfor
      2017-18 mav be allowed. For the session 2018-19. the college
      may apply for renewal permission to MCI
      18. Accepting the recommendations of the Hearing Committee.
      the Ministrv cmlfirms the conditional permission granted to        B
      the College in 2016-17. Further, it has been decided not to
      permit admi:vsion of students in MBBS courses for the
      academic session 2017-18 at the College. The College mav
      apply afresh for renewal o(permission for the academic
      session 2018-19 as per MCI Regulation.
                                                                         c
      19. Admission made in violation of above conditions will be
      treated as irregular and action will be taken as per provision
      of IMC Act, 1956 and the Regulations made there under."
                                                  (emphasis supplied)
       6. Being aggrieved by this deCision the petitioners have filed J.A. D
No.76155of2017 in the pending writ petition before this court praying
for quashing the aforementioned order dated I 01h August, 2017, to direct
the respondents to grant renewal of permission for znct year and to permit
the petitioner college to admit 150 students in MBBS course for the
academic session 2017-18 and further, allow the petitioner college to
                                                                           E
participate in the ongoing central counselling process ..
        7. According· to the learned counsel for the petitioners, the
petitioners were advised that second inspection was not permissible after
 15th December, 2016. The petitioners, therefore, questioned the necessity
for the second inspection by the Assessing Team on 21" and 22•ct
December, 2016. Inspection was already completed in November, 2016, F
during which no major or serious deficiency was found. From the available
record, as has been rightly noted by the OC, the defidencies reported in
the Assessment Report in respect of faculty were 1.5% and residents
6.52% which were within acceptable' limits and the other deficiencies
were subjective sans any express stipulation therefor. It was submitted G
that the petitioners are willing to comply with all the formalities tliatmay
be necessary and further conditions, if any. The petitioners are willing to
provide inspection of the college to MCI if the Court so· directs . .It is
submitted that considering the fact that the petitioner college has already
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400            SUPREME COURT REPORTS                          (2017] 9 S.C.R.


A started functioning from academic session 2016-17 and fulfills all the
  infrastructure and academic facilities, it ought to continue by confirming
  the LOP 2016-17, and admitting students even for the academic session
  2017-18. The petitioners have placed emphasis on the observation made
  by the Competent Authority that in the Inspection carried out in November,
  2016. no major deficiency has been noticed. which itselfis a valid reason
8
  to permit the petitioner college to admit students in MBBS course even
  for academic ses.sion 20.17-18.                                  '
         8. According to .the respondents, the inspection conducted in
  November, 2016 will be ofno avail to the petitioner college. For granting
  permission to the petitioner college to admit students for academic session
C 2017-18, a fresh inspection was inevitable. There has been no inspection
  in that regard as of now. Hence, the relief as claimed by the petitioner
  college cannot be acceded to. It is submitted that since the petitioners
  were responsible for not providing second inspection, it is not open to
  them to find fault with the decision of the Competent Authority of the
D Government oflndia. It is submitted that no permission can be granted
  to any professional college, much less medical college imparting MBBS
  course, without proper scrutiny and inspection. According to the
  respondents, this writ petition as well as the application are devoid of
  merits and deserve to be dismissed.
 E        9. Having considered the rival submissions, it is noticed that the
   OC in its communication dated 14.5.2017 has clearly noted that there
   was no major deficiency. The deficiencies reported in the assessment
   report in respect of faculty were only 1.5 % and residents 6.52 %. These
   were within the acceptable limits. The petitioner college has been
   functioning from academic session 2016-17. Even the Competent
 F Authority in the impugned decision has not opined that the deficiencies
   noticed earlier were significant 0r critical. On the other hand. in paragraph
   17, the Competent Authority has plainly noted that the November SAF
   Report mentions that there was faculty deficiency of 1.5% and residents
   deficiency of6.52% only. Such deficiencies by no standard can be said
 G to be critical. The same, as rightly observed by the OC, were within
   permissible limits.
             10. On a perusal of the record it is noticed that the Assessors of
      the MCI had inspected the college on 18th and 19<> November, 2016, as
      is evident from the Assessment Form for 150 MBBS Admissions Report
 H
    SARASWATI EDUCATIONAL CHARITABLE TRUST v.                                 401
       UNION OF INDIA [A. M. KHANWILKAR, J.]

submitted to the MCI, running into 36 P,.ages (Annexure-P/12) to ~his A
writ petition. The Summary of Assessment recorded in the prescribed
format reads thus:
                      "Summary of Assessment
      1. Saraswati Medical College, Unnao is run by Trust
      'Saraswati Educational Charitable Trust'                                8

      2. The college has got LOP from GOJ with intake of 150 seats
      for last academic year 2016-17 with reference to the
      conditional approval accorded by Oversight Committee
      3. Type of assessment: Regular - LOP No. of seats: 150                  c
      4. PG courses : No
      5. Deficiency of the infrastructure of college and hospital if
      any: Pl. Mention category wise:
      6. Deficiency of clinical material if any: Pl mention category D
      wise:
      Only one major operation (C-section) was done ti/112.30 pm.
      No minor surgeries done till I. 00 pm Investigations both
      Radiological and Laboratory inadequate. Cross verified by
      assessors. On an average only I unit of blood being dispensed
      per day. Total of 7 units were stored on the day of assessment.         E
      Most of the OPDs had few patients.
      7. Deficiency of teaching staff if any:
        Shortage of teaching faculty is 1. 5 % .
      8. Deficiency of resident doctors if any:                                F
        Shortage of resident doctors is 6.52 %
      .9. Any other Remarks: As mentioned in the report"
After this assessment report was submitted, another surprise inspection
was proposed on 21'1 December, 2016. Since the said inspection was            G
scheduled after ISlh December, 2016, the Principal ofthe petitioner college
questioned the said action and placed the objection on record in writing
vide letter dated 21.12.2016 which reads:

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402         SUPREME COURT REPORTS                   [2017) 9 S.C.R.


A                  "SARASWATI MEDICAL COLLEGE
      LIDA, Mad/rµ Vihar, P.O. Asha Khera, NH-25, Lucknow
      Kanpur Highway, Unnao (UP), Pi11·209859
      Tel: (+91) 515-307000,
8     Email: smc@saraswatlcolfeges.com


      Ref. No. SMCIMCl/2016-171014 Dated: 2111212016
      To,
c     The Secreta1y,                        •
      Medical Council of J11dia,
      New Delhi.
      Sub: Surprise As.se.ssment of Sara.rnmti Medical CtJllege 011
D     21u December, 20I6.
      Sir/Madam,
      Jn refere11ce to MCI Letter no.MCl-34(41) (UG)/2017-18
      Med.ldt.2111212016 regarding Surprise Assessment of
      Saraswati Medical College, Unnao on 21''' December, 2016.
E     I have to submit the following,
      1. Compliance Assessmelll & Verification of Physical and other
         facilities of Saraswati Medical College, Unnao, as per the
         direction of the OC, has already been conducted by MCI
         on 18'h..& 19'~ November, 2016 vide letter no.MCI-34(41)/
F         2016 - Med.I dt.18/ll/2016.
      2. MCI vide letter no. MCJ-34(4l)(R-107)/2016- Med/142566
         dt. 0811112016 has informed the college that assessmel1t
         Inspection will be held upto 15'" December 2016 only.
      3. LOP has already been granted to the College by the Ministry
G         of Health and Family Welfare and per direction of the OC
          an inspection verifying our compliance has already been
          undertaken by the MCI on 18'" & 19'" Nov., 2016.
      Since the OC has given 110 further direction for re-inspection .
      of the Compliance Inspection held by MCI on 18'" & 19'"
H
                    '   .
    SARASWATI EDUCATIONAL CHARITABLE TRUST v.                                   403
        UNION OF !NOIA [A. M. KHANW!LKAR, J.]

      Noi~. 2016 and since the MCI has categorically communicated               A.
      to the college that inspection will be carried out only upto
      15'" December, 2016, the college does not see any merit to
      undergo any further Compliance inspection for the session
      2016-17, hence denied the inspection on 21"' December, 2016
      BY THE MCI team.                                           .
                                                                                B
      Regards,

        SD/-
        Prof. B.P. MATHUR
        Principal''                                                             c
lt is noticed thatthe inspecting team did not insist on the second inspection
and chose to leave the coilege on account of the stand taken by the
Principal of the petitioner college. That fact was reported to the MCI
and the Executive Committee of the MCI considered the proposal in its
meeting held on I Jlh January, 2017 and noted as follows:                  c•
                                                                                D
       ." ... The Executive Committee of the Council also perused the
       letter dated 2111212016 from the appointed team of Council
       Assessors stating therein as under:-               ·
       With reference to email letter no. MCI-34(41)12016-Med.I
       dated 21.12.2016for the above cited subject, we went to the E
       college and reached there at JO am and met the Principal, Dr.
       B.P. Mathur who informed us that they did not want the
       assessment to be ·done and gave a letter stating the same. The
       letter from the Principal is attached along with the fl/led SAii
       form."
                                                                                 F
The Committee further perused the letter dated 21I12/2016 from the
Principal, SaraswatiMedical College, Unnao. The Committee submitted
its recommendation to MCI vide letter dated I5.01.2017 as under:-·
       "In view of the above, the college has failed to abide by the
       undertaking it had given to the Central Govt. that there are G
       no deficiencies as per clause 3.2(i) of the directions passed
       by the Supreme Court mandated Oversight Committee vide
       communication dated 1110812016. The Executive Committee,
       after due deliberation and discussion, have decided that the
       college has failed to comply with the stipulation laid down by
                                                                                 H
404             SUPREME COURT REPORTS                       [2017] 9 S.C.R.


A           the Oversight Committee. According/;~ the Executive Committee
            recommends that as per the directions passed by Oversight
            Committee in para 3.2(b) vide communication dated 111081
           2016 the college should be debarred ji·om admitting students
           in the above course for a period of two academic years i.e.
           2017-18 & 2018-19 as even after giving an undertaking that
B
           they have fulfilled the entire infrastructure for establishment
           of new medical college at Unnao. Uttar Pradesh by Saraswati
           Educational Charitable Trust. Lucknov.~ Uttar Pradesh under
           Chhatrapati Shah11ji Maharaj University, Kanpur, the college
           was fou'!d to be grossly deficient. It has also been decided by
c          the Executive Committee that the Bank Guarantee furnished
           by the college in pursuance of the directives passed by the
           Oversight Committee as well as GO/ letter dated 2010812016
           is liable to be encashed. "
         11. On the basis of the recommendation of the MCI, the Ministry
D decided to grant a personal hearing to the college on 8'h February, 2017
  by the DGHS. The Hearing Committee after examining the oral and
  written submissions of the college, submitted its report to the Ministry.
  The report of the Hearing Committee was forwarded to the OC for
  guidance. The OC after examining the matter, vide letter dated I4'h
  May, 2017 noted that the Executive Committee of MCI did not point out
E any deficiency from the assessment reports. On the other hand, the
  deficiency reported in the assessment report in respect of facufty was
  only l .5% and residents of 6.52% which was within the acceptable
  norms. The OC further noted that the rest of the deficiencies were
  subjective sans any express stipulation in that behalf and therefore
F commended confirmation of Letter of Permission.
          12. Considering the above, we find that the inspection for issuance
  of Letter of Permission for academic session 2017-18 was duly carried
  out on 18 and l 9'h November, 2016. We reject the contention raised by
  the respondents that no inspection in relation to academic session 2017-
G 18 has been carried out as of now. Indeed, the petitioners objected to the
  second surprise inspection intended on 21" and 22nct December, 2016 as
  the same was after the cut off date lS'h December, 2016. The purpose
  for which the second surprise inspection became necessary, when the
  earlier report was pending consideration and that too after the cut off
  date l 5° December, 2016, has not been explained or noted either by the
            1


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                                                                                    .. /




     SARASWATI EDUCATIONAL CHARITABLE TRUST v.                                405
        UNION OF INDIA [A. M. KHANWILKAR, J.]

Executive Committee in its meeting held on l J'h January, 2017 or for A '
that matter by the Hearing Committee and more so by the Competent
Authority of the Central Government. Significantly, it is not a case where
the college officials prevented the inspecting team from entering the
college. The petitioner college only placed their objection on record as
per the advice given to them that such inspection by the MCI after the
                                                                           8
cut off date was not permissible. The inspecting team chose to leave the
college without doing any inspection. The Competent Authority, however,
mechanically acted upon the recommendation of the MCI to debar the
petitioner college for two years and authorised the MCI to encash the
Bank Guarantee of Rs.2 crores vi de order dated 31" May, 2017.
       13. The said order dated 31" May, 2017, passed by the Ministry C
has been assailed in the present writ petition. As noted earlier, the writ
petition was heard along with the connected cases on I" August, 2017
on which date this Court directed the Central Government to reconsider
the matter afresh and record reasons.· Pursuant to the said directions,
the petitioners submitted representation before the Central Government D
and also participated in the hearing before the Hearing Committee on 3rd
August, 2017. The Hearing Committee without reference to the relevant
matters, once again reiterated the position taken earlier, that the petitioner
college did not permit second inspection to happen. Neither the purpose
of second inspection has been elaborated nor any justification has been
given by the Hearing Committee as to why the second inspection was E
required and moreso when the first inspection was done about a month
earlier. The Central Government has mechanically accepted the
recommendation of the Hearing Committee and has passed the impugned
decision on 1Olh August, 2017, as can be discerned from the observations
in paragraphs 17 and 18 of the impugned decision.                              F
        14. We have no hesitation in taking the view that the Hearing
Committee as well as the Central Government have failed to consider
all the relevant aspects of the matter and the conclusion reached by the
said authorities is, on the face of it, without application of mind, if not
perverse. We are ccmscious of the fact that there is nothing in the           G
Regulations which expressly or for that matter by implication prohibits
the MCI from undertaking rnul.tiple inspections. However, when that
action is questioned, it is expected that the MCI must offer some
justification for the second surprise inspection when its Assessors had
already carried out that exercise recently on l 81h and l 91h November,
                                                                              H
406             SUPREME COURT REPORTS                             [2017] 9 S.C.R.


A 2016 and submitte? an.elaborate report running into 36 pages in the
  prescribed format in that regard (Annexure-P/12). The Hearing
  Committee as well as the Competent Authority of the Central
  Government were expected to examine this aspect ofthe matter before
  taking any final decision. especially when the inspection report on record
  did not point out any deficiency except the marginal deficiency offaculty
8
  of 1.So/o and residents of 6.52% which were obviously within the
  permissible norms.
              15. The question is: whether this approach of the Competent
      Authority can be an impediment for consideration of prayer to allow the
      petitioner college to admit students in MBBS course for academic session
C     2017-18? Notably, the Competent Authority has already confirmed the
      conditional permission granted to the college for the academic session
      2016-17 but has not permitted the petitioner college to admit students in
      MBBS course for the academic session 2017-18. Further, the impugned
      decision even if read as a whole nowhere mentions the cause for the
D     second inspection when only one month back on I81hand 191hNovember,
      2016 a proper inspection was done and a comprehensive repo11 was
      submitted in that regard in the prescribed format and which was pending
      consideration before the MCI. The argument now raised by the
      respondents that the petitioners having objected to second inspection
      are not entitled for the relief, therefore, does not commend us. Considering
E     the fact that the petitioner college fol fills the infrastructure and academic
      requirements and has already become functional from academic session
      2016-17, by admitting the first batch of students in MBBS course and as
      even the Competent Authority has noticed that there are no major
      deficiencies, in the larger public interest, we allow this petition and the
F     application filed by the petitioners. We are also inclined to issue further
      directions to the respondents as have been issued in the judgment of Dr.
      Jagat Narain Suhharti Charitable Trust and Anr. vs. Union c>f India
      and Ors., delivered on 3Q•h August, 2017.
         16. We, accordingly, quash and set aside the impugned decision to
G the extent it bars the petitioners to admit upto 150 students in the academic
  session 2017-18. instead, we direct the respondents to permit the
  petitioner college to take part in the current year counselling process.
  The cut-off date for completing the admissions in respect of the petitioner
  college, however, is extended till 5th September, 2017. The respondents
  shall forthwith make available students willing to take admission in the
H
     SARASWATI EDUCATIONAL CHARITABLE TRUST. v.                                  4Q7
        UNION OF INDIA [A. M. KHANWILKAR, J.]

petitioner college through central counselling in order of their merit. This A
direction is being issued in exercise of plenary powers of this Court
under Article 142 of th~ Coiistitution of India, in the peculiar facts of the
present case to do complete justice and in larger public interest, so that
the aspiring students' who have not been admitted to the 111 year MBBS
course for the academic session 2017-18, in order of their merit in NEET
                                                                              8
examination, will get opportunity to be admitted in the petitioner college.
At the same time, we make it clear that the MCI or the Competent
Authority of the Central Government is free to inspect the petitioner
college as and when deemed fit and, if any deficiency is found after
giving opportunity to the petitioner college, may suitably proceed against
the college in accordance with law. This arrangement will subserve the C
ends ofjustice.
       17. No order as to costs.

Kalpnnn K. Tripathy ·                                       Pi:tition allowed.