Holding

The debarment order is untenable as the alleged bed‑occupancy deficiency was not verified; the Court therefore directs a fresh MCI inspection and allows the college to cure any deficiencies before any final decision.

Summary

Subharti Medical College sought to increase its MBBS intake from 100 to 150 seats for the 2017‑18 session. The Medical Council of India (MCI) inspection flagged several deficiencies, most notably a low bed‑occupancy rate of 55.27%, while the Hearing Committee found no fault with faculty, residents or clinical material but declined to comment on the bed‑occupancy issue, stating that physical verification was required. The Central Government’s Competent Authority, relying on the MCI’s negative recommendation, debarred the college from admitting students for two years and ordered the encashment of a Rs 2‑crore bank guarantee, without furnishing reasons. The Supreme Court, having earlier directed a fresh, reasoned order, held that the debarment order was unsustainable because the bed‑occupancy deficiency remained unverified and the hearing committee’s findings were inconclusive. Consequently, the Court directed the MCI to re‑inspect the college within three months, allow the college to remedy any deficiencies, report compliance, and then forward a verified report to the Competent Authority for a final decision, while keeping the bank guarantee alive.

Issues considered

Whether the Competent Authority can lawfully debar a medical college and encash its bank guarantee without a reasoned order and without verification of the alleged bed‑occupancy deficiency.
Whether the Hearing Committee’s inconclusive finding on bed‑occupancy necessitates a fresh physical inspection before any adverse decision can be taken.
Whether the Supreme Court may direct the MCI to conduct a re‑inspection and permit the college to rectify deficiencies before a final decision is made.

Subjects

Medical educationMBBS seat increaseMedical Council of IndiaBed occupancyInspectionDebarmentWrit petitionSupreme CourtCompetent AuthorityHospital facilities

Judgment

[2017] 9 S.C.R. 518

A SUBHARTI MEDICAL COLLEGE
v.
UNION OF INDIA AND ORS.
(Writ Petition (Civil) No. 426of2017)
B SEPTEMBER 08, 2017
[DIPAK MISRA CJI, A. M. KHANWILKAR AND
DR. D. Y. CHANDRACHUD, JJ.)
Education/Educational Institutions - Medical education -
MBBS seat - Grant of recognition - Application by appellant-
C Medical College seeking enhancement of the intake capacity from
JOO to 150 MBBS seats for academic session 2017-18 - On
inspection, deficiencies noted by MCI regarding bed occupancy -
Observations of Hearing Committee that there was no deficiency
with regard to the clinical material, faculty or residents as the same
D was within the permissible limits, however, the Committee did not
comment on thefaCtum of bed occupancy noticed in the assessment
report - Held: Direction issued to respondents, in particular the
MCI, to send its Inspecting Team to the petitioner college and inform
the petitioner college about the deficiencies, with option to remove
the same - Petitioner college would report its compliance to MCI -
E Thereafter, on basis of the report by MCI, the Competent Authority
· would take final decision - In case the final decision is adverse to
the petitioner, it would take recourse to further remedies.
Melmaruvathur Adhiparasakthi Institute of Medical
Sciences and Research v. Union of India and Am: W. P.
F (C) No. 680 of 2017 - referred to.
CIVIL ORIGINAL JURISDICTION: Writ Petition (Civil) No.
426of2017.
Under Article 32 of the Constitution oflndia.
G Mukul Roh~gi, A. Sharan, Sr. Advs.,Amitabh Sinha, Vivek Sirigh,
Advs. for the Petitioner.
Maninder Singh, ASG, Vikas Singh, Sr. Adv., Saurabh Mishra,
Amit Lal, Ms.Amandeep Kaur, Prateek Bhatia, Dhawal Mohan, Gaurav
Sharma, Ms: Deepeika Katia, R. K. Rathore, Vibhu ShankarMishra, G.
H S. Makker, Kuldeep Chauhan, Advs. for the Respondents.
518
. \
SUBHARTI MEDICAL COLLEGE v. UNION OF INDIA 519

The Judgment of the_Court was delivered by A
A. M. KHANWILKAR, J. I. The petitioner college made an
application for grnnt of recognition in respect ofMBBS seats (I 00-150)
to the Ministry of Health and Family Welfare, Government of India.
That application was forwarded to the Medical Council of India (for
short "MCr') for assessment of requisite physical and other teaching B
facilities for enhancing the intake capacity from I 00 to 150 MBBS seats.
Pursuant thereto, the MCI deputed its Inspection Team who, in turn,
I submitted an assessment report dated 27th March, 2017. The report has
I
•1, noted deficiencies inter alia regarding the bed occupancy which was
stated to be only 55.27% at 10.00 A.M. on the date of assessment. The C
. '
I·
I said report noted as follows:
'
"!. Medical college & hospital are part of University campus
"
-.I
r alongwith other Institutions of the University. No clear-cut
boundary of the medical college campus is shown in the
compliance.
D
2. Shortage of Residents is 5.81 % as detailed in the report.
3. Bed occupancy is 55.27% at 10 a.m. on day of assessment.
.• 4. There was NIL Normal Delivery & I Caesarean S~ction on
.. \
('I day of assessment.
E
5, Data of clinical material & Casualty attendance provided by

~·
\ Institute appear to be inflated.
6. Casualty: There was NIL patient in Triage area at 10:30 a.m.
on day of assessment.
I
I .•
7. In Tb & Chest ward# 11, Nursing Station is btaqk without any
medicines or papers. Deficiency remains the same.
F

I
8. Wards: All the comers of the ward are not completi:ty visible
from Nursing Stations due to pillars. Sterilized treatment trays are ·
"

j
not available in all the wards."
• v.•·.;.·
2. On that basis a negative recommendation was submitted by G
the MCI to the Central Government. That report was placed before the
Hearing Committee. The petitioner college was afforded personal hearing
before the Hearing Committee on 22•• May, 2017. The Hearing
Committee Qbserved that there was no deficiency with regard to the
clinical material, faculty or residents as the same was within the· H
1
-0
J /
l
520 SUPREME COURT REPORTS [2017) 9 S.C.R.

A pefmissible limits. However, the-Hearing Committee did not comment
on the factum of bed occupancy noticed in the assessment report, as
can be discerned from the extracted chart available in the impugned
decision dated 29'h August, 2016. The said chart reads thus:
.
Sri. Dejide11cies reported by MCI Observatio11s of hearin1:
B No. - committee

I. Medical college & hospital. The Medical College exists in the
are part of University campus University campus and has been
alongwilh other Institutions of recognized as such by MCI.
the University. No clear-cut
bmmdary of the medical
c college campus is shown in
the ''ompliance. The Sizar/age of residents is anly
marginal at 5.81% with the
II. Shortage of Residents is submission rendered by the
5.81% as_ detailed the college it st.>e111s to be brought
report. . . '" under the permis:vible limit .

D Ill Bed Occupancy is 55.27% at
JO a.m. on day of assessment.

I There was
NIL Norina/ Adequency of clinical material
Df!liVC!l)' I Caesarean
& ma.J/ have to be verified.
Section on day of assessment.
/II vi en• of the Committee.
II Data of clinical material & apparently there is 110 dejlciencj'
E Casualty attendance provided of faculty and residents, ho wev,'r
by Inst ilute appear to be the same cannot be said of
inflated. clinical material. In the given
facts, debarring the college for 2
Ill Casualty: There was NIL year seem too strict.
patient in ~_Tri age area at
JO: 30 a.m. 011 day of
F assessment.

IV In Tb & Chest ward # II.
Nursing Station is blank
without any medicines or
papers. Deficiency remains
)
the same.
G
-v Wards: All the comers of the
ward are not completely
visible from Nursing Stations
due to pillars. Sterilized
treatment trays are not
available in al/ the wards.
H
SUBHARTI MEDICAL COLLEGE v. UNION OF INDIA 521
[A. M. KHANWILKAR, J.]

3. Presumably, because of the deficiencies amongst other A
regarding bed occupancy; the Competent.Authority of the Central
Government passed an order on 31st May, 2017, debarringtbe petitioner
college from admitting students for two academic years 2017-18 &
2018-19 and authorising the MCI to encash the bank guarantee ofRs.2
crore offered by the petitioner. Since the order passed by the Competent .
8
Authority on 31st May, 2017 was bereft of reasons, this C.ourt vide order
dated Ist August, 2017 directed the. Competent Authority of the Centr.al ·
Government to give fresh opportunity to the petitioner college and then
pass a reasoned order. Pursuant thereto, the Competent Authority of the
Central Government has passed a fresh order on z9•h August, 2017,
which, however, is founded on the recommendation made by the Hearing C
Committee. It appears that the Central Government had placed the matter
before the Hearing Committee in which a member ofthe newly constituted
Oversight Committee (for short, "OC"), constituted by this Court was
present. The Hearing Committee could not arrive at any conclusive:.
opinion concerning the bed occupancy deficiency, for it was of the view· D
that physical verification was essential in that regard. Despite such
inconclusive findings .submitted by the Hearing Committee, the Competent
Authority mechanically proceeded to pass the impugned order dated
29th August, 2017. It may be apposite to reproduce the s11id order:
. "13. Whereas in compliance with the above direction of
Hon 'ble Supreme Court dated 1.8.2017, the Ministry granted E
hearing to the college on 22. 8.2017. A Member of the newly
constituted Oversight Committee also attended the Hearing
Committee Meeting. The Hearing Committee submitted its
second and final report after reviewing all facets of the case ·
on 29. 08.2017 to the Ministry with the following conclusion:- F
.. ··.'
'Tlte Hearing Committee is of tfle view tlrat t/le. bed .
occupancy as claimed by tlie college cannot be validated by
tlris Committee and requires pltysical. verification.' ,
A copy of the Hearing Committee report containing their
observations· is enclosed. a '\,."

14. Now, co11sidering the jindi11gs of the Hearing Committee,
the Ministry reiterates its earlier decfaion dated 31.5.2017 to
debar the Sublrarti Medical College, Meerut from admitting.
students against increased i11take i.e. from 100-150 for two
H
522 SUPREME COURT REPORTS [2017] 9 S.C.R.

A academic years i.e. 2017-18 ·& 2018-19 and authorize the
MC'I to encash the Bank Guarantee of Rs. 2. 00 Crore. "
4. We have heard Mr. Mukul Rohatgi, learned senior counsel
appearing for the petitioner college, Mr. Vikas Singh, learned senior
counsel appearing for MCI and Mr. Maninder Singh, learned Additional
B Solicitor General appearing for Union oflndia. The learned senior counsel
for the petitioner has made diverse submissions, including that there is
serious doubt about the manner in which the matter proceeded before
the Hearing Committee. In that, the Hearing Committee had already
concluded the hearing on 22nd August, 2017 but submitted its second and
final report after reviewing all facts of the case on 291h August, 2017.
C · This contention has been justly refuted by the learned counsel for the
respondents by pointing out that the hearing was concluded on 22nd August,
2017. On that date there was no OC in place. Soon thereafter, the OC
was re-constituted by this Court and for that reason, the Competent
Authority thought it appropriate to submit the second and final report
D after reviewing all facets of the case on 291h August, 2017, to which a
member of the newly constituted OC was party.
5. The learned counsel for the petitioner college also invited our
attention to the relevant record, in particular, the averments in paragraph
18 of the I.A., to buttress his contention that bed occupancy in the
E petitioner college has never been in doubt. The occupancy position noted
in assessment report of March, 2017 was, therefore, unreliable. This
argument though attractive at the first blush does not take the matter
any further, inasmuch as on the earlier occasion also, the Hearing
Committee did not note any finding or observation regarding the bed
occupancy deficiency one way or the other. That deficiency being beyond
F permissible limit, it will not be safe to accede to the request of the petitioner
to grant any relief or justify issue of directions to the respondents to
allow the petitioner to increase the intake capacity of the college for
academic session 2017-18 without proper verification.
6. In another case decided today i.e. Melmari1vat/111r
G Atll1iparasaktl1i Institute of Medical Scie11ces and Researclt Vs.
U11io11 of India a11d A11r. 1, we have come across a similar situation
where the Hearing Committee did not give a conclusive opinion/finding
regarding the deficiency pertaining to bed occupancy noticed in the

H 1
W.P.(C) No.680 of2017
SUB HARTi MEDICAL COLLEGE v. UNION OF INDIA .523
[A. M. KHANWILKAR, J.]

assessment report dated 2 i" March, 2017. For the same reasons, we A
may observe that even though the impugned order cannot stand the test
of judicial scrutiny, however, the appropriate course would be to direct
the respondents, in particular the MCI, to send its Inspecting Team to
the petitioner college within a period of three months and inform the_
petitioner college about the deficiencies if any, with option to remove the
B
same within the time limit as may be specified in that regard. The
petitioner college shall then report its compliance and communicate the
removal of deficiencies to MCI, whereafter it will be open to the MCI to
verify the position and then prepare its report to be placed before the
Competent Authority for being processed further in accordance with
law. Final decision be taken by the Competent Authority within one month C
from receipt of the report from MCI. In the event the final decision is
adverse to the petitioner, it will be open to them to take recourse to
further remedies as may be available in law. '
7. We make it clear that the inspection to be done will be for
considering the proposal for enhancement of intake capacity from I 00 D
MBBS seats to I SO seats and if approved, the same be given effect to in
academic session 2018-19. In other words, the proposal/application
submitted by the petitioner for the academic session 2017-18 be treated
as if having been made for academic session 2018-19. The bank
guarantee furnished by the petitioner shall not be encashed but the same
shall be kept alive until further orders to be passed by the Competent E
Authority of the Central Government in that behalf.
8. Writ petition is disposed of in the aforementio,ned terms. No
order as to costs.
F
Nidhi Jain Writ Petition disposed of.