High CourtDivision BenchWrit petition and interlocutory application dis...

Annaii Medical College & Hospital and Anr. v. Union of India and Anr.

Case / Petition Number:Writ Petition (Civil) No. 525 of 2017
Neutral Citation:[2017] 10 S.C.R. 1113

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dipak Misra
  • A. M. Khanwilkar
  • D. Y. Chandrachud
Judgment Date
2017-09-14
Court Decision / Holding
Writ petition and interlocutory application disposed of in the same terms: (i) allow the students admitted on the basis of conditional LOP for 2016-17 to continue; (ii) MCI to depute an inspection team within two months to assess overall performance and deficiencies and allow time to remove them; (iii) college to report compliance and MCI to verify position and make a recommendation to the Ministry; (iv) the bank guarantee of Rs. 2 crore shall not be encashed until final decision; (v) the inspection will consider confirmation of LOP for 2016-17; (vi) treat renewal application for 2017-18 as for 2018-19 and process accordingly.
Final Disposition
Writ petition and interlocutory application disposed of in the same terms with directions for continued education of admitted students, continued MCI inspection and remediation process, non-encashment of bank guarantee pending final decision, and treating renewal as 2018-19 pending further orders and compliance.

Parties to the Case

Appellants / Petitioners

  • Annaii Medical College & Hospital and Anr.

Respondents

  • Union of India
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • Mukul Rohatgi, Senior Advocate
  • • Amit Kumar
  • • Avijit Mani Tripathi
  • • Kumar H Abhishek, Advocates

Counsels for Respondents

  • • Maninder Singh, ASG
  • • Ajit Kumar Sinha
  • • Vikas Singh, Sr. Advocate
  • • G. S. Makker
  • • Gaurav Sharma
  • • Dhawal Mohan
  • • Prateek Bhatia
  • • Ms. Amandeep Kaur, Advocates

Case Synopsis & Summary

Annaii Medical College & Hospital (and Anr.) challenged the Central Government’s May 31, 2017 decision to debar the college from admitting students for two academic years (2017-18 and 2018-19) and to encash a bank guarantee, despite a conditional Letter of Permission (LOP) for 2016-17. The petition followed the MCI’s adverse assessment detailing deficiencies in faculty, residents, bed occupancy, blood bank, casualty facilities, and support staff, among others. A Supreme Court Mandated Oversight Committee had earlier directed the Ministry to issue a conditional LOP for 2016-17, which the MCI later found deficient. Although the Oversight Committee later opined that deficiencies were within permissible limits, the Ministry relied on the MCI’s negative stance and Debarred the college. The college argued that the decision was mechanical and ignored explanations accepted by the OC, and relied on precedents such as Dr. Jagat Narain Subharti and others to seek continued admission and to restrain encashment of the bank guarantee. The Court held that the impugned decision was not arbitrary or mechanical and was grounded in relevant materials demonstrating persisting deficiencies. It directed to allow admitted students to continue, ordered MCI to inspect and report, and provided for the bank guarantee to remain alive pending final decision, while treating renewal for 2017-18 as 2018-19. It disposed of the petition and I.A. in terms of these directions.

Provisions of Law Cited

Establishment of Medical College Regulations, 1999, clause 8(3)(1)(d)Article 32 of the Constitution of IndiaIMC Act and Regulations thereunder

Legal Doctrines & Maxims

  • The order must reflect application of mind (Royal Medical Trust)
  • Judicial review requires a reasoned, non-mechanical decision; all relevant materials must be considered

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners argued that the Central Government’s 31 May 2017 decision to debar for two years and encash the bank guarantee was based on a mechanical assessment, ignoring explanations accepted by the Oversight Committee and the mitigating factors (e.g., Diwali-related leave) that could render deficiencies within permissible limits. They urged restoration of LOP for 2016-17, and permission to admit up to 150 students for 2017-18, along with protection against encashment of the bank guarantee. They relied on earlier judgments (e.g., Dr. Jagat Narain Subharti Charitable Trust) to seek relief and to extend admissions.

Contentions of Respondents

The respondents contended that the impugned decision was well-reasoned, grounded in the assessment reports showing significant deficiencies beyond permissible limits, and not merely mechanical. The OC’s guidance and Ministry reliance on MCI’s negative recommendation were properly considered. They argued that the decision aligns with statutory regulations and prior jurisprudence that restrict admissions once deficiencies persist, especially after notice and hearing.

Cited Precedents (6)

Case NameCitationTreatmentExplanation
Glocal Medical College and Super Speciality Hospital & Research Centre v. Union of India and Another2017 (8) SCALE 356Mentioned OnlyCited among authorities with para reference; used to inform discussion but not expressly adopted or distinguished.
Dr. Jagat Narain Subharti Charitable Trust & Anr. v. Union of India and Ors.2017 (10) SCALE 308Mentioned OnlyCited as a relevant decision but not expressly followed or distinguished in the reasoning here.
Shri Venkateshwara University v. Union of India2017 (11) SCALE 77Mentioned OnlyCited for background principles; not a direct ratio applied in the current decision.
Royal Medical Trust & Anr. v. Union of India & Anr.2017 (11) SCALE 307PositiveCited to emphasize that a central government order must reflect application of mind and not be arbitrary or mechanical.
Varunarjun Trust and Anr. v. Union of India and Ors.2017 (11) SCALE 242PositiveUsed to illustrate that relief may be moulded in line with precedent when appropriate, such as continuing admitted students under certain conditions.
World College of Medical Sciences & Research v. Union of India and Anr.—Mentioned OnlyCited in context but not treated as controlling; referenced for comparative guidance.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Annaii Medical College & Hospital and Anr. v. Union of India and Anr. and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

# [2017) 10 S.C.R. 1113 ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. A v. ## UNION OF INDIA AND ANR. (Writ Petition '(Civil)No.525of2017 • • With I.A. No. 84899 of_2017) B ; .·· ... . . SEPTEMBER 14, 2017 [DIPAK MISRA, CJI; A. _M. KHANWILKAR AND. DR. D. Y. CHANDRACHUD, JJ.] . _Education/Educational Institutions_ - _MBBS course_ - _Medical_ C _College debarred from admitting students for two academic sessions_ - _Legality of_ - _Petitioners lzad submitted application for_ . _establishment of a new medical_ ~ollege _from arndemic session 201617_ - _MCI pointed out dejicie1icies_ - _Ministry issued a conditional LOP for academic session 2016-20I7_ - _MCI again pointed out_ D. - _deficiencies· and sen( a negative .recommendation to the Ministry/ Respondent_ - _Ministry/Respondent accepted the_ recommendation of the MCI and debarred the college from admitting students for two academic sessions i.e. 2017-2018 & 20I8-20/9_ - _Writ Petition_ - _Ministry/ Respondent directed to reconsider matter (lf!'esh_ - . _Ministry/Respondent reiterated its earlier decision and debarred_ . E - _the petitioner-college Said order challenged by petitionercollege_ - _Held: Impugned decision is n,either unjus't no_r suffet.1: from the vice of extraneous consideration_ - _It refers to all .relev(lnt materials pointing toward1· the deficiencies in the college which still persisted and is not a mechanical order_ -. _As regwrts the deficiency_ F · _of faculty members and residents, it was contended that absence of a large number of medical staff was mainly due to Diwali festival, but the same was rejected as inspection was conducted beyond two days from the festival, which was permissible in terms of_ cl.8(~)( _l)(df of the regulations_ ~ _Howeve1; respondents· directed to allow the. students already admitted in petitioner-college 011 basis of_ G _conditional LOP for academic .i·ession 2016-2017 to continue their· sllldies_ - _MCI directed to depute inspection team and submit recommendation to the Ministry to consider c.onfirmation of LOP in, favour of petitioner-college for thf!. academic session 2016-2017_ - _Further direction to respondents to treat the renewal application_ .H 1113 1114 SUPREME COURT REPORTS [2017] IO S.C.R. - A _submitted by t/ie petitioner-college for t/ie academic session 201718 as hal'ing been made for the academic session 2018-19_ - _Establishment of Medical College Regulations, 1999_ - _cl.8(3)( I )(d)._ - Disposing of the writ petition and I.A., the Court - HELD: 1. On a bare perusal of the impugned decision, it is - B manifest that the Competent Authority of the Central Government _inter alia_ noticed as follows: (i) Absence of large number of faculty members and residents beyond the permissible limit on the day of inspection; (ii) Explanation offered by the petitioners about the absence of faculty members and residents due to leave granted - c to them and also because the inspection was done just after Diwali festival, was unsatisfactory; (iii) Explanation regarding one faculty was not accepted as he was present during the Government college inspection in September. [Para 8) [1123-C-E] 2. As regards the deficiencies of faculty members and - D residents, it was contended before the Hearing Committee that the absence of such large numher of medic:il staff wus mainly attributable to Diwali festival. The Hearing Committee has dealt with that contention and noted that Diwali was on 29'" October, 2016, whereas the inspection was conducted on 3'" & 4' 11 November, 2016. That was obviously beyond two days from Diwali - E festival and was permissible in terms of Clause 8 (3)(1)(d) of the Establishment of Medical College Regulations, 1999. A similar argument has been considered and rejected by this Court in the case of _Shri Venkateshwara University Vs. Union of India_ and in _Royal Medical Trust_ & _Anr. Vs. Union of India_ & _A11r._ Hence, no - F fault can be found with the view taken by the Competent Authority. The Hearing Committee also considered the explanation given by the petitioners regarding one faculty whose presence was noticed during the inspection of the Government College in September, 2016. The Hearing Committee then observed that the college could not provide compliance in respect of other - G deficiencies. The other deficiencies noticed in the Assessment Report dated 3'" & 4'h November, 2016, which remained unexplained, were very significant and cannot be overlooked. It is seen that the Bed Occupancy on the day of assessment was only Sl.6'X1. It was also noticed that the Hospital, with so many - H indoor patients, had not utilized any blood unit after 30'" July, 1115 ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. v. UNION OF INDIA AND ANR. 2016. Indeed, the petitioners have asserted that the concerned A staff who was maintaining the Blood Bank Register was not available and the "up-to-date register" ~as kept by him in his locker. This explanation did not find favour with the authorities. The other critical deficiency noticed in the Assessment Report was that only 76 paramedical & non-teaching staff were available B as against requirement of 100. The statutory scheme provides for a minimum ratio of staff and Beds to be maintained. The OC, however, brushed aside these deficiencies by observing that there was no minimum standard requirement MSR in that regard. [Para 9] [1123-F-G; 1124-A-D] 3. Considering the above, it is not possible to countenance C the argument of the petitioners that the view taken by the Competent Authority is unjust, manifestly wrong or suffers from the vice of extraneous consideration. The impugned decision refers to all the relevant materials pointing towards the deficiencies in the college which still persisted, notwithstanding D the undertaking given by the college to remove the same. That undertaking was the basis for issuing conditional LOP for the academic session 2016-2017. Be that as it may, it is also not possible to sustain the argument of the petitioners that the impugned decision is a mechanical order passed by the Competent Authority. [Paras 10, 11] [1124-E-F] E 4. Accordingly, writ petition and interlocutory application disposed of in the same terms, as follows: (i) The respondents arc directed to allow the students already admitted in the petitioner college on the basis of conditional LOP for the academic F session 2016-17, to continue their studies; (ii) The MCI shall depute its Inspection Team within a period of two months to submit an assessment report regarding the overall performance and efficiency of the petitioner college and deficiencies, if any, and give time to the petitioner college to remove those deficiencies within the time specified in that regard; (iii) The G petitioner medical college shall then report its compliance and communicate the removal of deficiencies to MCI, whereaftcr it will be open to the MCI to verify the position and then submit its recommendation to the Ministry. The Ministry shall then take a final decision within one month of the receipt of the H 1116 SUPREME COURt REPORTS [2017) IO S.C.R. A recommendation from the MCI; (iv) Until the final decision is taken by the Ministry and communicated to the petitioners, the Bank Guarantee offered by the petitioners in the sum of Rs. Two Crore shall not be encashed by the MCI but the petitioners shall keep the same alive. In the event the final decision of the B Competent Authority of the Central Government is adverse to the petitioners, it will be open to them to take recourse to such remedies as may be permissible in law; (v) The stated inspection to be conducted by the MCI will be to consider confirmation of LOP in favour of petitioner college for the academic session 20162017; (vi) Further, the respondents to treat the renewal application C submitted by the petitioner college for the academic session 2017-18 as having been made for the academic session 2018-19 and process the same in accordance with law with promptitude. [Para 13] [1126-G-H; 1127-A-F] _Glocal Medical College and Super Speciality Hospital_ D _·& Research Centre v. Union of India and Another_ 2017 (8) SCALE 356; _Dr. Jagat Naroin Sublwrti Chari1<ible Trust & Anr. v. Union of India and Ors._ 2017 (10) SCALE 308: _Shri Venkateslnvara Universitv v. Union ·of India_ 2017 (11) SCALE 77; _Royal Medical Trust & Anr. v. Union of India & A11r._ 2017 (11) SCALE 307; E _Varunarjun Trust and Anr. v. Union of India and Ors._ · 2017 (11) SCALE 242 - referred to. D ## Case Law Reference ·.- ·, F G |2017;|2017;(8) SCALE 356|referred to|Para4 ·| |---|---|---|---| |2017 (10) SCALE 308|2017 (10) SCALE 308|referred to|Para5| |2017|(11)SCALE 77|referred to ·|Para9| |2017 (11) SCALE|2017 (11) SCALE3Q7|referred to|Para9| |2017|(11)SCALE 242|referred to|Para12| CIVIL ORIGINAL JURISDICTION: Writ Petition (Civil) No. 525 of2017. Under Article 32 of the Constitution oflndia. Mukul Rohatgi, Sr. Adv. Amit Kumar, Avijit Mani Tripathi, Kumar H Abhishek, Advs. for the Petitioners. ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. v. . UNION OF INDIA AND ANR. 1117 Maninder Singh, ASG. Ajit Kumar Sinha, Vikas Singh, Sr. Ad vs. Vipin Kumar, Sa1ad Kr. Singh:mia, G. S. Makker, Gaurav Sharma, Dhawal Mohan, Prateek Bhatia, Ms. Amandeep Kai.tr, Advs. for the - Respondents. A The Judgment of the Cot1rt was delivered by **A. M. KHANWILKAR, J.** l. The petitioners have assailed B the decision dated 31" May, 2017 of the Under Secretary to the . Government oflndia, Ministry of Health & Family Welfare (Department of Health & Family Welfare), declining to confirm the conditional Letter _of Permission (for short, "LOP")' granted tb the petitioners to establish a new medical college in the name and style of 'Annaii Medical College c & Hospital; Kancheepuram, Chennai', from the academic session 201617 and debarring the college _from_ admitting students for the next two academic sessions i.e. 2017-2018 and 2018-2019 and further authorising the Medical Council of India (for short, "MCI") to encash the.bank guarantee of Rs.2 crorc offered by the petitioner college. D 2. The petitioners had submitt~d an application for establishment. of a ~ew medical college from academic session 2016-17 onwards with · intake capacity of 150 students. That proposal was iJrocessed and, pursuant to the directives issued by the Oversight Committee (for short, "OC~, constituted by this Court), the Ministry issued a conditional LOP for the academ'ic sessio11 2016-17, despite a rn;:gative report submitted by the MCI pointing out several deficiencies. The LOP dated 20[1] hAugust, 2016 incorporated the conditions specified by the OC. The MClthen carried out the verification of compliance subJTli~ted by the college on 3n1 · & 4'h November, 2'016, noting the·following deficiencies:- E F - "i. _Deficiency oj faculty is 27.69_ % _as detailed in the report._ ii. _Shortage of Residents is 26.08% as detailed in the reP,ort._ - _iii. Bed occupancy is 51.6% on day of assessment-at JO a.m .._ . - iv.· _There were only_ 2 _Major Operations_ & _I Minor Operations on day of assessment._ · G - _v. There wasonly 1 Normal Delivery_ & _NIL Caesarean Section 011 day of assessment._ - Fi .. _There was NIL patient in TCCU_ & _NICU on day of ·assessment._ i 1118 [2017] IO S.C.R. ## SUPREME COURT REPORTS - A _vii. In blood Blood Bank no blood unit is issued after 131071 2016._ - Fiii. _Casualty: Separate Casualty for o.a is not available. ix. Paramedical and non-teaching staff: 76 Paramedical_ & _Non-teaching staff are available against requirement of_ - B _JOO._ - _x. Pltan11aco Vigilance Committee is yet to be comtituted. xi. Gender Harassment Committee is yet to be conftituted._ - _xii. Wards: Pantry rooms are available but there are no_ - C _facilities._ _xiii. ETO Sterili::.er is not functional._ _xiv. NIL Cadaver is available._ - _xv. Website: Information uploaded is not complete. Citizens'_ - D _charter is not available."_ In view of the deficiencies, the Executive Committee of the MCI decided to send a negative recommendation to the Ministry. Accordingly, MCI _vide_ Jetter dated 26[1] h December, 2016, informed the Ministry as under:- - " _In view of the above, the college has failed to abide by the_ - E _undertaking it had given to the Central Govt. that there are no deficiencies as per clause 3.2(i) of the directions passed by the Supreme Court mandated Oversight Committee vide communication dated JJ/0812016. The E>:ecutiFe Committee, after due deliberation and discussion, have decided that the_ - F _college has failed to comply with tlte stipulation laid down by the 0Fersight Committee. Accordingly, the Executive Committee recommends that as per the directions passed by Oversight Committee in para 3.2(b) Fide communication dated JJ/0812016 the college should be debarred from admitting students in the above course for a period of two_ - G _academic years i.e. 2017-18_ & _2018-19 as even after giFing an undertaking that they have fulfilled the entire infrastructure for establishment of new medical college at Pennalur, Kancheepuram Dist. Tamilnadu by Sri Karumariamman Educational Trust, Tamilnadu, with an_ - H _annual intake of 150 MBBS students under The Tamilnadu_ • ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. v. 1119 UNION OF INDIA AND ANR. [A. M. KHANWILKAR, J.] _Dr. MGR Medical University, Chennai the college was found_ A _to be grossly deficient. It has also been decided by tlze Executive Committee that the Bank Guarantee furnished by the college in pursuance of the directives passed by tlze Oversight Committee as well as GO! letter dated 2010812016 is liable to be encuhsed."_ B 3. The Ministry granted a personal hearing to the college on 17'h January, 2017 before the Director General of Health Services (for. short, "DGHS''). The Hearing Committee considered the explanation offered by the petitioner college and opined that the same was neither satisfactory nor substantiated, from the material placed before it and that it was necessary to verify the position in the medical college. The opinion of the Hearing Committee was forwarded by the Ministry to the OC for guidance. The OC, in turn, _vide_ letter dated 14[11] ' May, 2017 opined that the deficiencies were duly explained by the college and were within the pem1issible limit. It opined that the LOP deserved to be confirmed. This opinion of the OC was then considered by the Ministry along with the negative recommendation submitted by the MCI and the opinion of the Hearing Committee (DGHS). The Ministry chose to accept the recommendation of the MCI in view of the deficiencies noted in the college during the inspection. As a result, the Ministry _vide_ letter dated 31'' May, 2017, communicated the decision of the Competent Authority of the Central Government to the petitioner college, debarring the college from admitting students for two academic years i.e. 2017-18 & 2018-19 and also authorising MCI 'to encash the bank guarantee. The said communication reads thus:- C D E F ## _"ANNEXURE-P/22_ _Sveed Post_ _No. U.1201211271201.6-ME-l [3084749] Government of India Ministry of Health_ & _Family Welf<ire (Department of Health_ & _Family Welfare)_ G _Nirman Bhawan, New Dellzi Dated the 31" May, 2017_ H 1120 SUPREME COURT REPORTS [2017] 10 S.C.R. A _To_ _The Principal/Dean, Amwii Medical College, Pennaalur Kancheepuram, Chennai_ - _6021/_ 7, _Tamilnadu._ B _Subject: Conditional permission granted for establishment of Medical College in 2016-17-Decision of the Central Government_ - _Annaii Medical College, Pennalur_ - _reg._ _Sir/Madam,_ c _In continuation to this Ministry's letter dated 20.08.2016 granting conditional permission for establishment of a medical college 150 seats for the academic year 2016-17 on tile basis of_ D _approval co1m1w11icated by Supreme Court Mandated Oversight Committee 011 MCI and after granting w1 opportunity of hearing to the College with reference to the recommendation of the_ MCI'.~ _letter No. MCI-34(41)(E-80)12016-Med. 154505 dated 26.12.2016, I am directed to convey the decision of the Central Government to debar Armaii Medical College, Chennai from admitting students in next_ E _two academic yew:1· i.e. 2017-18_ & _2018-19 and also to authorize MCI to encash the Bank Guarantee of Rs. 2.00 crore._ F 2. _You are therefore, directed not to admit students in the MBBS course in the academic years 2017-18_ & _2018-19 at your College. Thereafter, next batch of students shall be admitted in the College only after obtaining permission of the Central Government for renewal._ _3. Admissions made in violation of the above dirt>ctives will be treated as irregular and action will be initiated under IMC Act & Regulations made thereunder._ G _Yours faithfitlly,_ _Sdl(D. V.K. Rao) Under Secretary to the Govt. of India Telefax: 011-23062959"_ H 1121 ## ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. UNION OF INDIA AND AN!l. [A. M. KHANWILKAR, J.] 4. The petitioners. being aggrieved, have filed the present writ A · petition. ·In view of the decision in _Glocal Medical College and Super Speciality Hospitai_ & _.Research Centre Vs. Union of India and Another,_[1 ] the Central Government was directed to reconsider the matter afresh after giving opportunity of hearing to the petitioners including further submission, if any, and to pass a reasoned order. Accordingly, the B Hearing Committee granted opportunity of hearing to the petitioner college on 4'h August, 2017 and after considering the record and oral and written submissions, the Hearing Committee· reiterated its earlier . decision.After receipt of the opinion givert by the Hearing Committee, th-e Competent Authority of the Central Government reiterated its earlier decision dated 31" May, 2617, _vide._ order dated JO•h August, 2017. The C last two paragraphs of the impugned decision dated lQ•h August, 2017 ·are relevimt, which read thus:- · _"I7. Now, in compliance with the above direction of Hon'bte_ ' _Supreme Court dated 1.8.2017, the Ministry grunted hearing to the college 0114.8.2017. The Hearing Committee after_ D _comidering the record anti oral & written submission of the_ -. _college sub1;nitted its report to the Ministry. The findings of the Hearing Committee are as under:-_ _The inspection was conducted on 3:4 November. This was just after Diwali on 29.10.2016 and thus 12 faculty and_ 7 _residents were on leave. One faculty_ l1YIS _not accepted as he appeared in the Government college inspection in September. He had superannuated in October and joined_ the college in November. Biometric machines have been installed a.nd 30-3I August is the date given by MCI for_ - _.faculty mapping._ E F _The college could provide compliance on other deficiencies_ _College has I46 students in the first year and the ·management requested tlzat it is in .the interest of students that the college is not debarl'ed._ G _The Committee agrees with the decision of the Ministry conveyed by letter dated 3I.05.2017 to debar the college for_ 2 _years mui also permit MCI lo encash bank guarantee._ H , I 2017 (8) SCALE 356 1122 (2017] JO S.C.R. ## SUPREME COURT REPORTS - A _18. Accepting the recommendations of the Hearing Committee, the Ministry reiterates its earlier decision dated 31.05.2017 to debar the college from admitting students for a period of two years i.e. 2017-18 and 2018-19 and also to authorize MCI to encash the Bank Guarantee of Rs. 2 crores."_ B Aggrieved, the petitioners have challenged the aforementioned decision by filing an Interlocutory Application (I.A. No.84899 of 2017) in this Court. 5. The principal ground urged by the petitioners is that once again, c the Competent Authority of the Central Government has passed a mechanical order. In that, the explanation offered by the petitioners which commended to the OC, has not been considered. The opinion of OC has been completely disregarded by the Competent Authority. It is submitted that the deficiencies noted in the Assessment Rep01t dated 3n1 & 4'h November, 2016, could not be held against the college as the inspection D was done around the time of Diwali festival. Further, the faculty and residents who were on leave were called back and could not be counted against the deficiencies. It is submitted that the OC had justly noted that on excluding such faculty members and residents, the deficiencies would be within acceptable limits. The petitioners, relying on the recent decision - E of this Court and in the case of _Dr. Jagat Narai11 Subharti Charitable Trust_ & _Anr. Vs. Union of llldia and Ors.[2] ,_ would contend that this is a fit case to confirm the LOP for the academic session 2016-2017 and also to direct the respondents to permit the petitioner college to admit upto 150 students forthe academic session 2017-2018 and further, restrain the respondents from encashing the bank guarantee. - F 6. Per contra, the respondents. would contend that there is no infirmity in the decision of the Competent Authority in its order dated 31" May, 2017. The impugned decision dated I O'h August, 2017, passed by the Competent Authority is a well considered decision. It has taken into account all the relevant records and previous proceedings whilst G considering the explanation offered by the petitioners. The explanation did not find favour with the Competent Authority, whose opinion must be taken as final. Having rejected the explanation. it would follow that the deficiencies noticed in the Assessment Report dated 3'd & 4'h November, 2016, were beyond the permissible limit. It is submitted that in the fact - H 2 Writ Petition (C) No. 513 of 2017, decided on 30.08.2017. 1123 ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. UNION OF INDIA AND ANR. [A. M. KHANWILKAR. J.] situation of the present case, no relief be granted to the petitioners. Further, A the decision of this Court relied upon by the petitioners was on the facts of that case which has no applici:ltion to the case of the petitioners. 7. We have heard Mr. Mukul Rohatgi, learned senior counsel for the petitioners. Mr. Maninder Singh, learned Additional Solicitor General for the Union oflndia and Mr. Vikas Singh, learned senior counsel along B with Mr. Gaurav Sharma, learned counsel for the Medical Council of India. 8. On a bare perusal of the impugned decision dated 10[1] " August, 2017, it is manifest that the Competent Authority _inter alia_ noticed as follows:- C - (i) Absence of large number of faculty members and residents beyond the permissible limit on the day of inspection. - (ii) Explanation offered by the petitioners about the absence of faculty members and residents due to leave granted to them and also because the inspection was done just after Dewali D festival, was unsatisfactory. - (iii) Explanation regarding one faculty was not accepted as he was present during the Government college _inspection in - - September. - (iv) No compliance was provided in respect of other deficiencies. E 9. As regards the deficiencies of faculty members and residents, it was contended before the Hearing Committee that the absence of such large number of medical staff was mainly attributable to Diwali festival. The Hearing Committee has dealt with that contention and noted that Diwali was on 29[1] h October, 2016, whereas the inspection was conducted on 3n[1 ] & 4'h November, 2016. That was obviously beyond two days from Diwali festival and was permissible in terms of Clause 8 (3)(1 )( d) of the Establishment of Medical College Regulations, 1999. A similar argument has been considered and rejected by this Court in the case of _Sllri Ve11katesllwara University Vs. Union of India[3 ]_ and in _Royal Medical Trust_ & _Am: Vs. Union of India_ & _Anr.[4 ]_ Hence, no fault can be found with the view taken by the Competent Authority. The F G 'Writ Petition (C) No. 445 of 2017. decided on 01.09.2017. > 4 Writ Petition (C) No. 747 of2017. decided on 12.09.2017. H 1124 [2017] IO S.C.R . ## SUPREME COURT REPORTS .. A Hearing Committee also considered the explanation given by the petitioners regarding one faculty whose presence was noticed during the inspection of the Government College iii 'September, 2016. The Hearing Committee th'en observed that the college could not provide compliance in respect ofother deficiencies. The other deficiencies noticed in the Assessment Report dated 3'd & 4'h November, 2016, which B remained unexplained, were very significant and cannot be overlooked. It is seen that the Bed Occupancy on the day of assessment was only 51.6%, It was also noticed that the Hospititl, with so many indoor patients, had not utilized any blood unit after 30'h July, 2016. Indeed, the petitioners have asserted that the concerned staff who was maintaining the Blood C Bank Register was not available and the "up-to-date register" was kept by him in his locker. This explanation did not find favour with the authorities. The other critical deficiency noticed in the Assessment Report was that only 76 paramedical & non-teaching staff were available as against requirement of 100. The statutory scheme provides for a minimum D ratio of staff and Beds to be maintained. The OC, however, brushed aside these deficiencies by observing that there was no minimum standard requirement MSR in that regard. 10. Considering the above, it is not possible to countenance the argument of the petitio,ners that the view taken by the Competent Authority is unjust, manifestly wrong or suffers from the vice of extraneous consideration. The impugned decision dated 1 o•h August, 2017 refers to all the relevant materials pointing towards the deficiencies in the college which still persisted, notwithstanding the undertaking given by the college to remove the same. That undertaking was the basis for issuing conditional LOP for the academic session 2016-2017. E F 11. Be that as it may, it is also not possible to sustain the argument of the petitioners that the impugned decision is a mechanical order passed by the Competent Authority. Similar argument has been considered and rejected in the case of _Royal Medical Trust (supra)._ The dictum in paragraph 52 of the said decision will apply on all fours. The same reads G thus:- _"52. What Dr. Dhawan submits basically is that as the order passed by the Central Government after the order passed by the High Court of Kera/a does not really reflect any reason, this Court should axe the same treating it as arbitrary_ H ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. v. 1125 UNION OF INDIA AND ANR. [A. M. KHANWILKAR, J.] _and grant the LOP cmd that would he wi.thin the power of_ A _judicial review. The order passed by the Central Government has to be appreciated in its entirety. We repeat at the cost of repetition that neither the Centrcil Govemment nor the Hearing Committee is expected to pass a judgment_ a.5 _a Judge is expected to "do. The order must i-eflect application of mind_ B _and should indicate reasons. We may reiterate that the order dated 31st May, 2017, was bereft of reason, but the order impugned, that_ is _the order dated 14ih August, 2017, cannot be said to be sans reason. Learned senior counsel would· contend with all the vigour at his -command that it is not a reaS011ed one and for the same 23 (2004)_ 2 _SCC 150 50 our_ C _attentio.n has been drawn to the penultimate paragraph of the orde1:"_ • .. 12. Not~bly, this Court in the aforementioned case of _Royal_ · _Medical Trust_ (supra), has ordained that no relief can be granted to such institutions to admit students for the academic session 2017-2018, since, the cut-off date for the admission to the MBBS course.is over and the academic session has commenced. Resultantly, we may mould the relief as done in the case of _Varu11arjun Trust a11d A11r. Vs. Union of llldia a11d Ors.[5 ]_ wherein it is observed thus:.·.;. ' , D E - _"18. Be that as it hl(ly, the opinion of the Hearing Committee,_ E _which_ is _the basis for passii1g the. impugru;d decision, is founded on the peiformance of the college 011 the day of_ - . _inspection dated 18111_ - _19'" November, 20 I 6 ._ . _The question is: whether absence of facul(v members and residents on the given day, assuming it to be substantial in 11umber, per se,_ F _could be the basis for determining the efficiency and performance of the college for the rest of the academic session while considering the proposi1l for grant of permission? There is nothing in the opinion of the Hearing Committee or the decision of the Competent Authority that requisite number of faculty members and residents was not_ G _employed in the petitioner college or that the claim of the petitioner college in that behalf »'as bogus. The noting is about the absence of such large number of facftlty and residents on the day of impection and during the duty hours:_ ' · _[5 ]_ Writ Petition (C) No. 787 of2017, decided on 12.09.2017. H 1126 SUPREME COURT REPORTS [2017] I 0 S.C.R. A B _Assuming that t/Je college could not secure the presence of those persons at the time of inspection, it does not follow that those faculty members and residents were 1101 on the pay ml! and in the employment of the petitioner college. This aspect certainly requires proper verUi'cation and consideratio11 by the concerned authority._ _19. A priori, we may adopt the course as in the case of World College of Medical Sciences_ & _Research Vs. Union of bulia[6] , by directing the respondents to allow the students already admitted in the petitioner college 011 the basis of conditional LOP for the academic session 2016-17, to continue their_ c _studies. The MCI shall send its Inspection Team within a period of three months to submit an assessment report regarding the overall performance and efficiency of the petitioner college and deficiencies, if an.\; and give time to the petitioner college to remove those deficiencies within the_ D _time specified in that regard. The petitioner medical college shall then report its compliance and communicate the remoml of deficiencies to MCI, whereajier it will be open to the MCI to verify the position and then submit its recommendation to the Central Government. The Ministry shall take a final decision within one month of the receipt of the_ E _recommendation jivm the MCI. Until such decision is taken and communicated to the petitioners, the Bank Guarantee offered by tile petitioners in the sum of Rs. 1\vo Crore shall not be encashed by the MCI but the petitioners shall keep the same alive. In the event the final decision of the Competent_ F _Authority of the Central Government is adverse to the petitioners, it will be open to them to take recourse to such remedies as may be available in law._ " 13. Accordingly, we dispose of this writ petition and interlocutory application in the same terms, as follows:- - G (i) The respondents are directed to allow the students already admitted in the petitioner college on the basis of conditional LOP for the academic session 2016-17, to continue their studies. •Writ Petition (C) No. 514 of 2017, decided on 05.09.2017. H - . ANNAII MEDICAL COLLEGE & HOSPITAL AND ANR. v. 1127 UNION OF INDIA AND ANR. [A. M. KHANWILKAR, J.] - (ii) The MCI shall depute its Inspection Team within a period A of two months to submit an assessment report regarding the overall performance and efficiency of the petitioner college and deficiencies, if any, and give time to the petitioner college to remove those deficiencies within the time specified in that regard. B - (iii) The petitioner medical college shall then report its compliance and co!flmunicatethe removal of deficiencies to MCI, whereafter it will be open to the MCI to verify the position and then submit it~ recommendation to the Ministry. The Ministry shall then take a final decision within one month c - of the receipt of the recommendation from the MCI. - (iv) We direct that until the final decision is taken by the Ministry and communicated to the petitioners, the Bank Guarantee offered by the petitioners in the sum of Rs. Two Crore shall not be encashed by the MCI but the petitioners shall keep the same alive. In the event the final decision of tile Competent Authority of the Central Government is adverse to the petitioners, it will be open to them to take recourse to such ' remedies , as ' may.be permissible in law. . D- - (v) We direct that the stated inspection to be conducted by the MCI will be to consider confirmation of LOP in favour of[E ] petitioner coJlege for the academic session 2016-2017. - (vi) We further direct the respondents to treat the renewal application submitted by the petitioner college for the academic session 2017-18 as having been made for the academic session 2018-19 and process the same in accordance with law with promptitude. F 14. Writ petition and interlocutory application are disposed of in the above terms. No order as to costs. **==> picture [12 x 9] intentionally omitted <==** **----- Start of picture text -----**<br> G<br>**----- End of picture text -----**<br> Ankit Gyan **==> picture [70 x 9] intentionally omitted <==** **----- Start of picture text -----**<br> Matters disposed of.<br>**----- End of picture text -----**<br>