SOUMYA RANJAN PANDA & ORS.versusSUBHALAXMI DASH & ORS.

                  [2026] 6 S.C.R. 241 : 2026 INSC 488

                      Soumya Ranjan Panda & Ors.
                                  v.
                        Subhalaxmi Dash & Ors.
                   (Civil Appeal No(s). 7861-7862 of 2026)
                                   14 May 2026
               [Vikram Nath and Sandeep Mehta,* JJ.]


                             Issue for Consideration
       Issue arose whether the students transferred to private medical
       colleges liable to pay fees at Government rates or at the rates
       applicable to private medical colleges; how the differential liability, if
       any, is to be apportioned between the students and the Educational
       Trust; whether the State of Odisha and/or the MCI/NMC should
       be directed to make good the deficiency; and whether the entire
       liability should be fixed on the Education Trust.

                                     Headnotes†
       Education/Educational Institutions – Medical colleges – Denial
       of renewal of recognition to medical institution-SRMCH due
       to certain deficiencies – Directions by the High Court to
       relocate/transfer students from SRMCH to other recognized
       medical colleges within the State, and that the Students
       admitted under Government quota could be accommodated
       in Government medical colleges, whereas students under
       the management/private quota could be accommodated
       in private medical institutions – Appeal before this Court
       that such relocation to Government medical colleges,
       disturbed the existing admission framework – Issuance of
       interim orders from time to time to regulate the relocation
       and continuation of the students in other private medical
       institutions – State Government relocated/transferred
       students to transferee private medical colleges – Interlocutory
       applications seeking directions as regards the payment of the
       fees:
       Held: It would amount to unjust enrichment of these transferee
       students while being conscious of the fact that they had to face a


* Author
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       chaotic situation of being transferred to different medical colleges
       mid-session – However, all interests of these students duly
       protected by this Court ensuring that they cleared the medical
       course without losing a single academic year – Thus, neither the
       students can be given undue advantage or bonanza nor can the
       defaulting institution-SRMCH/Trust, be permitted to take benefit
       of its own follies – Maxim commodum ex injuria sua nemo habere
       debet states that no one should derive a benefit from their own
       wrong – While the admitted students had undertaken to pay the
       prescribed fees to SRMCH, it is equally true that, upon payment of
       such fees, they were entitled to complete their course without any
       hitch or difficulty – However, owing to the deficiencies in SRMCH,
       its recognition was not renewed, resulting in the students being
       subjected to a very tumultuous and volatile situation, putting their
       future in grave risk – As regard the manner in which the resultant
       financial liability is to be apportioned between the parties while
       balancing the equities, since the students were transferred and
       admitted to these colleges pursuant to the directions of this
       Court in exceptional circumstances, the primary brunt of liability
       must be fastened upon SRMCH, subject to such adjustments
       as may be permissible in law – As regards the disbursal of
       amounts deposited by the SRMCH, the amount of Rs.10 crores
       furnished by the Trust by way of bank guarantees with the MCI/
       NMC, along with the amount of Rs.2 crores deposited before
       this Court, with accrued interest thereupon, to be payable to
       the transferee colleges – As regards the liability of students, the
       passed-out students cannot be allowed the benefit of a windfall
       or a bonanza merely by dint of the interim orders passed by this
       Court, which was in form of an emergent measure in order to tide
       over the situation where the students faced risk of losing their
       entire careers – By virtue of the orders passed by this Court,
       the students have completed the medical courses, as such they
       should be asked to make good their outstanding fee obligations –
       Transferee colleges to make representations to the MCI/NMC
       as regards the exact shortfall of the fee due from each student
       applying SRMCH rates, for recovery of their remaining dues –
       NMC to provide due redressal to the colleges for recovery of the
       deficit amount, and upon compliance such students would be
       entitled to receive academic and course completion documents,
       certificates. [Paras 36-46, 52-54]
[2026] 6 S.C.R.                                                             243

       Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


                               Case Law Cited
     Priya Gupta v. State of Chhattisgarh [2012] 5 SCR 768 : (2012) 7
     SCC 433; Hind Charitable Trust & Ors. v. Union of India & Ors. [2024]
     14 SCR 1361 : W.P. (Civil) No. 469 of 2014; Sardar Rajas Medical
     College v. UoI, Writ Petition (C) No. 681 of 2014 – referred to.

                                  List of Acts
     Constitution of India.

                              List of Keywords
     Students transferred to private medical colleges; Liability to pay
     fees; Government rates or rates applicable to private medical
     colleges; Differential liability; Apportionment between the students
     and the Educational Trust; Denial of renewal of recognition to
     medical institution-SRMCH due to certain deficiencies; Relocate/
     transfer students to other recognized medical colleges.

                              Case Arising From
     CIVIL APPELLATE JURISDICTION: Civil Appeal No(s).
     7861-7862 of 2026
     From the Judgment and Order dated 18.11.2015 and 09.12.2015
     of the High Court of Orissa at Cuttack in WPC No. 12224 of 2015

                         Appearances for Parties
     Adv. for the Appellant(s):
     Kedar Nath Tripathy.
     Advs. for the Respondent(s):
     Pratap Venugopal, V. Giri, Gauravh Sharma, Ashok Kr Parija,
     Sr. Advs., Amarjit Singh Bedi, Ms. Surekha Raman, Shreyash
     Kumar, M/S. K J John And Co, Merusagar Samantaray, Kanishk,
     Anurag Yadav, M. Gireesh Kumar, Ankur S. Kulkarni, Sanjay
     Singh, Ashok Kumar, Milind Kumar, Kedar Nath Tripathy,
     Ms. Aswathi M.k., Anand Chandra Swain, Ms. Sunshine Anand
     Swain,Ms.Vaishnavi Sahoo, Janmejay Verma, Manish Chaurasia,
     Ms. Khushi Chhetri, Piyush Garg, S. K. Verma, Siddhartha
     Chowdhury, Anand Chandra Swain,Ms. Sunshine Anand Swain,
     Ms. Vaishnavi Sahoo,Ms. Akanksha Verma Chandok, Dhawal
     Mohan, Praeek Bhatia, Gaurav Khanna, Avnish Kumar Sharma,
     Abhisek Dash, Ramendra Mohan Patnaik.
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                       Judgment / Order of the Supreme Court

                                               Judgment
       Mehta, J.
1.     Heard.
2.     Leave Granted.
3.     Application(s) for impleadment/intervention are allowed.

       Scope of the Present Controversy: -
4.     These appeals, though arising out of special leave petitions
       challenging the judgment and order dated 18th November, 2015, and
       9th December, 2015 passed by the High Court of Orissa1, have, over
       the course of time, assumed a distinct and focused contour. What
       commenced as a challenge to the directions issued by the High Court
       concerning the relocation of students from Sardar Rajas Medical
       College, Hospital and Research Centre, Jaring, Kalahandi, Odisha2
       was subsequently shaped by a series of interim orders passed by
       this Court regulating the process of relocation and safeguarding
       the academic interests of the students. By order dated 8th January,
       2016, this Court expressed reservations with the approach adopted
       by the High Court in directing relocation based strictly on quota
       distinctions. Thereafter, another order dated 12th January, 2016 was
       passed permitting the continuation of students in recognised private
       institutions and enabled the State authorities to carry out relocation in
       a manner consistent with maintaining academic continuity. Pursuant
       to these directions, the relocation process was undertaken through
       a State-supervised counselling mechanism, ensuring that the
       students were accommodated in recognised private medical colleges
       (transferee colleges) thereby preventing loss of an academic year.
5.     During the course of these proceedings, the transferee private
       medical colleges, namely, Kalinga Institute of Medical Sciences
       (KIMS), Bhubaneswar, Institute of Medical Sciences & SUM Hospital,
       Bhubaneswar, and Hi-Tech Medical College & Hospital, Bhubaneswar3,


1    Hereinafter, referred to as the “High Court”.
2    For short, “SRMCH”.
3    Hereinafter, referred to as the “transferee colleges”.
[2026] 6 S.C.R.                                                              245

          Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


       have filed interlocutory applications being I.A. Nos. 73763 of 2019,
       69514 of 2019 and 151684 of 2022, seeking issuance of appropriate
       directions/clarifications, inter alia, for payment/reimbursement of
       fees for the education imparted by them to the transferred students
       pursuant to the orders of this Court.
6.     The present controversy is no longer centred around the validity of
       the impugned orders passed by the High Court but is focused on a
       fair resolution of the financial liabilities arising out of an extraordinary
       situation, where the academic trajectory of the students was preserved
       through judicial intervention, but the resultant financial burden
       remains to be equitably apportioned. In view of the subsequent
       developments and the directions issued by this Court, the lis now
       stands crystallised around the adjudication of the claims raised in
       the said interlocutory applications.

       Background: -
7.     The brief background facts are that two batches of students for the
       MBBS course were admitted in a college named SRMCH, which is
       under the control and management of the Selvam Educational and
       Charitable Trust4 (respondent No.76). The admissions pertain to the
       academic sessions 2013-2014 and 2014-2015. After the students
       had undergone a few academic sessions, numerous deficiencies in
       infrastructure, facilities, and regulatory compliances were noticed in
       the college by the Medical Council of India5 during its inspections,
       resulting in denial of renewal of recognition to the institution. These
       developments, during the academic sessions 2013-2014 and 2014-
       2015, led to a situation wherein the academic future of the students
       admitted in these batches was placed in grave jeopardy.
8.     Initially, the controversy was taken up by the High Court, which passed
       various directions in order to safeguard the interests of the students
       and accordingly ensured that the students be relocated/transferred
       from SRMCH to other recognized medical colleges within the State.
       The High Court, while directing relocation, had also observed that
       students admitted under Government quota could be accommodated
       in Government medical colleges, whereas students admitted under
       the management/private quota could be accommodated in private


4    Hereinafter, referred to as the “Selvam Trust”.
5    Hereinafter, referred to as the “MCI/NMC”.
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       medical institutions, which led to further controversy regarding
       disruption of the admission framework in the Government colleges.
9.     The said orders came to be challenged before this Court by way of
       the present appeals, inter alia, on the ground that such relocation,
       particularly to Government medical colleges, disturbed the existing
       admission framework and adversely affected other aspirants who,
       despite being higher in merit, would be deprived of opportunity to
       secure admission in the Government institutions.
10. While taking up the appeals, interim orders were issued by this Court
    from time to time to regulate the relocation and continuation of the
    students in other private medical institutions, keeping open the issue
    of fee liability and financial adjustment between the parties.
11. Consequent to these directions, the State Government relocated/
    transferred the students to three transferee private medical colleges
    (referred to supra), which have preferred the present interlocutory
    application(s) for intervention and seeking further directions for
    payment of the fees due to them on account of education imparted to
    the transferred students. A total of 124 students were affected by the
    relocation process, comprising admissions under both Government
    quota and Management/Private quota. As one student withdrew, 123
    out of the total of 124 candidates were subjected to online counselling
    by the Director of Medical Education and Training, Odisha and
    41 students each were allocated to the three applicant/transferee
    colleges; however, at this stage, one more candidate did not take
    admission, resulting in 122 provisional admissions. Ultimately, 41
    students each were relocated to KIMS and IMS, and 40 to Hi-Tech
    Medical College, as is evident from the record.
12. The transferee colleges have stated that the students admitted in their
    institutions have paid only the Government-rate fee (approximately
    Rs.30,000/-per annum) pursuant to interim directions of this Court,
    and that too for a limited period, and that a substantial portion of the
    academic fees payable for the courses imparted to these students
    remains outstanding and payable to these colleges as per their
    entitlement.
13. It is further submitted that the transferee colleges at the initial stage could
    not raise any protest regarding shortfall of fees, as the students were
    transferred to their institutions pursuant to the directions of this Court.
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          Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


14. The transferee colleges have also placed on record charts indicating
    the fees due from each student, along with a comparative analysis
    of the fee structure prevailing in their respective institutions vis-à-vis
    the fee chargeable at SRMCH. A comparative chart in respect of
    one such transferee college, namely, KIMS, is set out hereinbelow
    by way of illustration: -

     KIMS

     a.     Batch of 2013-14. [Total 33 Students]

      SEMESTER                FEE in KIMS             FEE in SRMCH
      4th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      5th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      6th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      7th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      8th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      9th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      Total                   Rs.18,00,000/-          Rs.12,75,000/-

      Fee for 33 Students (2013-14 Batch) as 3 3 x 1 2 , 7 5 , 0 0 0 / - =
      per SRMCH                              Rs.4,20,75,000/-

     b.     Batch of 2014-15. [Total 8 Students]

      SEMESTER                FEE in KIMS             FEE in SRMCH
      3rd Semester            Rs.3,00,000/-           Rs.2,12,500/-
      4th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      5th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      6th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      7th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      8th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      9th Semester            Rs.3,00,000/-           Rs.2,12,500/-
      Total                   Rs.21,00,000/-          Rs.14,87,500/-

      Fee for 8 Students (2014-15 Batch) as per SRMCH 8 x 12,75,000/- =
                                                      Rs.1,19,00,000/-
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       c.   33+8 transferred students would have paid Rs.4,20,75,000/- +
            Rs.1,19,00,000/- = Rs.5,39,75,000/- as Fee in SRMCH.
15. The above figures clearly demonstrate that the fee structure of KIMS
    was substantially higher than that of SRMCH. Similarly, the fee
    structures of the other transferee colleges are also higher than that
    of SRMCH, though their detailed charts are not being reproduced
    herein for avoiding repetition.
16. We may also note here that pursuant to the order of this Court dated
    19th April, 2016, the Selvam Trust, under whose aegis SRMCH was
    being run, had deposited a sum of Rs.2 crores with the Registry
    of this Court, which, along with accrued interest, now stands at
    Rs.3,58,69,331/-.
17. Furthermore, the Selvam Trust had furnished a sum of approximately
    Rs.10 crores, as recorded in the order of this Court dated 8th January
    2016, with the MCI/NMC by way of bank guarantees as security in
    connection with regulatory requirements relating to the establishment
    and functioning of the institution.

       Submissions advanced on behalf of the Parties: -
18. The students (respondents before us), who were transferred to the
    aforesaid three colleges, have, inter alia, contended through Shri
    Pratap Venugopal, learned senior counsel, that they were admitted
    to SRMCH through a valid admission process and were subsequently
    compelled to shift to private medical institutions for no fault of theirs.
    It is submitted that they have already paid fees at Government rates
    in compliance with the interim directions of this Court and have since
    completed their medical courses after facing great hardship and
    uncertainty. It is, therefore, urged that these passed-out students
    should not be burdened with any additional financial liability at this
    belated stage.
19. The Selvam Trust, represented by Shri V. Giri, learned senior
    counsel, has contended that the findings regarding deficiencies in
    SRMCH are still under challenge before the competent forums. He
    submitted that the Trust is contesting the said findings by raising
    issues with the MCI/NMC and that the question of its liability cannot
    be conclusively determined in the present proceedings without due
    adjudication of such disputes. It is further urged that the students
[2026] 6 S.C.R.                                                           249

       Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


     have already derived the benefits of continued education in other
     recognised medical institutions, which would be either equivalent
     to or even better than the institution in which they were originally
     admitted i.e. SRMCH, and therefore, the entire financial burden
     ought not to be saddled upon the Trust. It is emphatically contended
     that no additional liability should be fastened on the Trust without
     determining its defaults, vis-à-vis, the regulatory mechanism.
20. The transferee colleges, being the intervenors, have contended that
    they undertook the burden of accommodating the transferred students
    pursuant to the directions of this Court, without a demur, and provided
    them the requisite infrastructural and logistic facilities and high-quality
    education by facing significant challenges. It is also submitted that only
    a meagre proportion of actual fees calculated at Government rates
    was paid by the students, and that too for a limited duration, and that
    a substantial amount towards the fees chargeable by the colleges
    remains outstanding. Not only this, but these students were also
    paid stipends as per the course module. It is further urged that these
    institutions, having been burdened with additional students, suffered
    unprecedented financial loss, and are entitled to receive the difference
    of fees and stipend amounts applicable to their respective institutions
    and cannot be compelled to impart education at Government-rate
    fees which are highly subsidised. It is urged that the colleges ought
    to be fully compensated for the cost of the education imparted, along
    with appropriate interest for the delayed payment.
21. The Medical Council of India (now the National Medical Commission),
    represented by Shri Gaurav Sharma, learned senior counsel, has
    taken a stand that the fee structure is required to be determined in
    accordance with the applicable statutory and regulatory framework.
    It is submitted that the admission categories ought to be classified
    on a quota-based system, whereby students admitted under the
    Government quota would be liable to pay fees at Government rates,
    whereas those admitted under the management quota would be
    liable to pay higher fees as applicable to such category.
22. Shri Gaurav Sharma has further submitted that the bank guarantee
    of Rs.10 crores furnished by the Selvam Trust with the MCI/NMC
    ought not to be adjusted towards the dues of the private medical
    colleges, as the said amount may be subject to regulatory disposition,
    including possible transfer to the State Government.
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23. The State of Odisha has contended that the admissions to SRMCH
    were conducted through a valid admission process undertaken by the
    State authorities. It is submitted that, before determining the issue of
    payment of fees to the transferee colleges (applicants), it would be
    apposite to examine the question of quota classification and then decide
    the applicable rate of fees reimbursable to the transferee colleges.

       Discussion and Findings: -
24. We have considered the submissions advanced at Bar and have
    gone through the material placed on record.
25. In our opinion, the only controversy surviving in the present lis is as
    to how the issue of fee liability is to be resolved, keeping in mind
    the following probable scenarios: -
       (a)   Whether the students transferred to private medical colleges are
             liable to pay fees at Government rates or at the rates applicable
             to private medical colleges;
       (b)   How the differential liability, if any, is to be apportioned between
             the students and the Selvam Educational and Charitable Trust;
       (c)   Whether the State of Odisha and/or the MCI/NMC should be
             directed to make good the deficiency.
       (d)   Whether the entire liability should be fixed on the Selvam
             Education and Charitable Trust.
26. We are of the view that the issue regarding classification of the
    transferred students against Government/private/management quota
    does not arise for consideration because there is no material on
    record to show that any of the three transferee colleges had any
    vacant seats against the Government quota. Needless to state that
    the question of admitting students against Government quota seats
    would only arise if there were any vacancies of such quota in the
    transferee colleges. In the absence of material to indicate such
    vacancies, we need not delve into the question as to whether any
    of the transferee students could have been adjusted against the
    Government quota. Hence, it is to be presumed that all the students
    were accommodated against private/management quota seats and
    the fee structure applicable to such seats would have to be applied
    for deciding the issues of liability and entitlement.
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        Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


27. As per the material available on record, during the academic year
    2014-15, when inspections were carried out, they revealed the
    existence of serious fundamental deficiencies in the defaulting
    institution (SRMCH), particularly in relation to infrastructure, availability
    of teaching faculty, and other essential requirements mandated by
    law and procedure for imparting medical education.
28. In view of these crucial deficiencies, the Executive Committee of
    MCI/NMC, upon due consideration, recommended to the Central
    Government that renewal of permission for admission of the second
    batch of 100 MBBS students for the academic year 2014-15 ought
    not to be granted. The said recommendation was duly communicated
    and accepted by the Competent Authority, resulting in denial of
    renewal to SRMCH. The said decision was assailed by the medical
    college before this Court by way of Writ Petition (C) No. 681 of 20146.
    However, by order dated 8th August, 2014, the said writ petition was
    dismissed in limine. The dismissal of the said writ petition lends
    credence to the findings and allegations of MCI/NMC regarding
    inadequate infrastructure, faculty, and other essential facilities at
    SRMCH during the relevant years, thereby affirming that the institution
    was not compliant with the prescribed standards. Manifestly, the
    decision not to continue the recognition had a cascading effect on
    the 2013-2014 batch of students as well. However, we make it clear
    that these observations may not be construed to be prejudicing
    the rights of the defaulting institution, i.e., SRMCH, in appropriate
    proceedings, if any.
29. It is equally pertinent to note that, in a separate proceeding being
    W.P.(Civil) No. 469 of 2014 titled Hind Charitable Trust & Ors. v.
    Union of India & Ors., this Court, by an interim order dated 18th
    September, 2014, permitted admissions to MBBS courses in certain
    private medical colleges, including those whose renewal of recognition
    was either pending or denied, subject to compliance with specified
    conditions. Subsequently, by order dated 25th September, 2014, this
    Court directed that the fees chargeable from such students shall be
    at par with the fees applicable in Government medical colleges and
    that admissions shall be made through a common State list, without
    any distinction between Government and management quota. These


6   Sardar Rajas Medical College v. UoI.
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       directions had a direct bearing on the admissions made in SRMCH
       for the academic sessions 2013-2014 and 2014–2015.
30. The Court further directed that the Government-rate fee shall continue
    to be applicable till the students so admitted complete their course.
    Thus, under the interim arrangement made by this Court, the entire
    course duration of the students admitted in the academic session
    2014-2015 was governed by this subsidised fee structure. Both
    the orders stated above are reproduced hereinbelow for ease of
    reference:

       Order dated 18th September, 2014
           “Heard the learned senior counsel appearing for both the
           sides. Looking at the peculiar facts and circumstances of
           the case and, especially, when several seats for medical
           admission are likely to remain vacant for the academic
           year 2014-15, we are of the view that these matters
           require urgent consideration and we are giving these
           interim directions under the provisions of Article 142 of
           the Constitution of India.
           There is one more reason for passing this interim order.
           We are conscious of the fact that number of physicians
           in our country is much less than what is required
           and because of non-renewal of recognition of several
           medical colleges, our citizens would be deprived of
           a good number of physicians and therefore, we are
           constrained to pass this order, whereby at least there
           would be some increase in the number of physicians
           after five years. We are running against time because
           the last date for giving admissions to MBBS Course
           for the academic year 2014-15 is 30th September, 2014.
           We also desire to reconsider the directions given by
           this Court in the judgment of Priya Gupta v. State of
           Chhattisgarh [(2012) 7 SCC 433], but at this juncture, as
           we do not have sufficient time to decide all these petitions
           finally, we are passing this interim order and the matter
           with regard to reconsideration of the aforestated judgment
           would be considered while finally disposing of this group
           of petitions.
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       Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


           It has been submitted on behalf of the learned senior
           counsel appearing for all the petitioners/ respondents, who
           are managing medical colleges, that the defects which had
           been recorded at the time of the last inspection by the
           representatives of the Medical Council of India have been
           duly rectified and at present, the defects pointed out in
           the reports do not exist. The said fact can be ascertained
           only by having a fresh Compliance Verification/Inspection.
           However, the stand taken by the Central Government and
           the Medical Council of India is to the effect that no such
           inspection can be undertaken in the present academic
           session because of paucity of time and it would violate
           the time schedule laid down by this Court in the case of
           Priya Gupta (supra).
           The learned senior counsel appearing for the Medical
           Council of India has also submitted that the petitioners
           do not have any legal right for getting renewal of the
           recognition, especially in view of the fact that the
           Verification/Inspection Reports are not available for the
           period in question. The learned senior counsel has relied
           upon some of the Judgments to substantiate his case and
           according to him, it would not be just and proper to permit
           the said medical colleges to take fresh batch of students.
           Looking at the peculiar facts of the case and the
           circumstances stated hereinabove, we direct the
           petitioners to file undertakings by President/Chairman
           and Secretary of the petitioners’ institutions running
           medical colleges within 10 days from today, to the
           effect that there is no defect in the medical colleges
           run by them and they would also state that their
           deposit with the MCI, which is around Rs.10 crores,
           be forfeited by way of penalty if the statement made
           in the undertaking is found to be incorrect at the time
           of the next inspection. A draft undertaking has been
           given to this Court. A copy of the undertaking, which
           might be filed by the institutions, shall be served upon
           the office of the Medical Council of India as well as
           to the Ministry of Health and Family Welfare, Govt. of
           India, New Delhi.
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       We also record the fact that in the recent past, the
       Medical Council of India has renewed recognition
       of Government Medical Colleges on the basis of
       undertakings and therefore, we see no reason not to
       permit the private colleges to admit students on the
       basis of undertakings given by their office bearer as
       a special case.
       Notwithstanding any direction given in the case of Priya
       Gupta (supra), if undertakings as stated hereinabove are
       filed by the institutions managing medical colleges for the
       academic year 2014-15, admissions shall be given to the
       students from the merit list prepared by the States and
       they shall be charged fees prescribed by the Government
       Medical Colleges of their respective States. The State
       Authorities, i.e., the Directorate of Medical Education &
       Research, of the respective States shall send students,
       in order of their merit, to the medical colleges run by the
       petitioners, which are situated within their States, within
       one week from the date of receipt of a copy of this order
       and the said students shall be admitted to the MBBS
       Course in accordance with the rules and regulations of
       the MCI and also regulations dated 16.04.2010 framed
       by the Medical Council of India, provided undertakings
       as mentioned above are filed on behalf of the concerned
       institutions.
       It is also clarified that there would be no further counselling
       in respect of the students who are to be given admission,
       even if it might result into some heart burning among
       other students, but in the peculiar facts of the case, we
       give this direction.
       In no case, the admission shall be given after 30th
       September, 2014. This order shall also apply to all the
       institutions which had filed their petitions earlier for renewal
       of their recognition for the academic year 2014- 15, but
       their petitions were rejected or withdrawn for whatever
       reason, provided undertakings as stated hereinabove are
       filed by President/Chairman and the Secretary of those
       institutions. All those petitions shall be deemed to have
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       Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


           been revived and this order shall be deemed to have been
           passed in those cases also. This order shall only be in
           respect of renewal of recognition and not for creation of
           additional seats or for new colleges. We also record that
           the Union of India has supported the petitioners in the
           interest of students.
           We also direct the Union of India to give wide publicity
           to this order in print as well as electronic media in the
           interest of the concerned students.
           It is directed that the list of students getting admission in
           pursuance of this order shall be placed on record of this
           Court by 1st October, 2014 by the concerned institutions
           and a copy thereof shall also be sent to the MCI.
           These matters shall be treated as part-heard and shall be
           notified for further hearing in the month of December, 2014.”

     Order dated 24th September, 2014
           “After hearing the learned counsel for the parties we deem
           it appropriate to issue following clarifications with regard
           to our earlier order dated 18th September, 2014. These
           clarifications shall be read into the said order as if they
           were always part thereof : -
           1.   The order dated 18th September, 2014 shall also
                apply to cases where colleges or institutions
                were seeking increase in intake capacity and in
                the current year have been denied permission
                to admit students after first or second or third
                or forth renewal/inspection. In our view such
                institutions where Renewal/Inspection with
                respect to increase in capacity were conducted
                in the present academic year are also entitled to
                the benefit under the order dated 18th September,
                2014.
           2.   We also clarify that fees chargeable from the
                students admitted pursuant to our order dated
                18th September, 2014 shall be at the same rates
                as applicable to the students in Government
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            medical colleges in respective States and such
            fees shall be at the same levels as that of the
            Government medical colleges till the students
            so admitted pass out from the private medical
            colleges or institutions.
       3.   Our order shall also apply to all similarly situated
            institutions irrespective of the fact whether any
            petitions were or are pending in this Court or in
            any of the High Courts or even if they had not
            approached any court at all. This order shall also
            apply even in cases where there were orders of
            stay in favour of the Medical Council of India
            restraining the colleges from admitting students
            for the current academic session.
       4.   The order shall not apply to colleges or institutions
            which have been disqualified by the Medical Council
            of India and/or the Central Government and have
            been prohibited from making any admissions for the
            current academic year 2014-15.
       5.   In cases where two separate lists are prepared
            and sent by the State agencies one relating to
            State quota and the other relating to management
            quota in private institutions, we clarify that for
            the current academic year there shall be only
            one list and that shall be the “State quota” alone.
            There shall not be any management quota list
            to be sent to the private colleges or institutions
            taking the benefit under our order dated 18th
            September, 2014. The Management quota shall
            also be be filled through the State list and the
            fees chargeable for the management quota shall
            also be charged at the same levels and rates as
            applicable to State quota list.
       6.   We further clarify that private institutions taking benefit
            under our order dated 18th September, 2014 shall
            have to take students only from the State agencies
            and at fees chargeable for students in Government
[2026] 6 S.C.R.                                                        257

       Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


                medical colleges as stated above, regardless of their
                status or claim as Minority Institutions or Deemed
                Universities.”
                                                 [Emphasis supplied]

31. It is further borne out from the letter dated 20th January, 2015 written
    by Directorate of Medical Education & Training, Odisha that Sardar
    Rajas Medical College (SRMCH) had already collected fees @ of
    Rs.4,25,000/- per student. However, since only Rs.30,000/- per
    student, being the fee applicable to Government medical colleges,
    was permissible in terms of the aforesaid directions, the competent
    authorities directed the college to refund the excess amount of
    Rs.3,95,000/- per student.
32. It may be further noted that the payment of fees at Government
    rates by the students of 2014-2015 batch was in pursuance of the
    interim directions issued by this Court in the present proceedings. In
    addition, insofar as the students admitted in the academic session
    2014–2015 are concerned, the said position also stood reinforced by
    the directions issued by this Court in Hind Charitable Trust (supra),
    whereby it was mandated that such students would be liable to pay
    fees at rates applicable to Government medical colleges. However,
    clearly this direction was in the nature of an interim arrangement
    devised in order to tide over the prevailing exigencies arising from
    the non-renewal of recognition of the concerned institution(s) by
    the MCI/NMC and the attendant issues relating to Government and
    management quota admissions.
33. It cannot be denied that admissions to private medical colleges,
    particularly under the management/private quota would carry a
    substantially higher fee structure than that applicable to Government
    Medical Colleges. The students had initially taken admission in
    SRMCH, which indisputably was a private medical institution
    operating under a public-private partnership framework within the
    State of Odisha, wherein admissions were conducted through the
    State counselling process, comprising both Government quota and
    management quota seats. Thus, these students had consciously
    contracted to pay at the higher fee standards charged by the private
    medical college. Possibly, on their own merit, these students may
    not have got admission into the Government medical colleges.
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34. Be that as it may, on account of subsequent developments and
    the intervention of this Court, they continued their education and
    completed the same in the three transferee colleges.
35. In this scenario, what arises for consideration is whether the students,
    who had initially taken admission in a private medical college having a
    higher fee structure, can be permitted to continue to avail the benefit
    of Government-rate fees on account of the interim directions issued
    by this Court even though in the first place, they had not qualified
    for the Government colleges in the admission process conducted
    for this purpose.
36. This, in our opinion, would amount to unjust enrichment of these
    transferee students while being conscious of the fact that they had
    to face a chaotic situation of being transferred to different medical
    colleges mid-session. However, all interests of these students were
    duly protected by this Court ensuring that they cleared the medical
    course without losing a single academic year. Thus, neither the
    students can be given undue advantage or bonanza nor can the
    defaulting institution, i.e., the SRMCH/Selvam Trust, be permitted
    to take benefit of its own follies.
37. Undeniably, the finding of deficiencies taken note of by the MCI/
    NMC during inspection of the infrastructure/faculty of the SRMCH
    is no longer under debate, as the SRMCH/Selvam Trust failed to
    maintain the requisite standards for imparting MBBS course to the
    students admitted by it by charging much heavier fees than what is
    applicable in Government colleges. The Writ Petition (C) No.681 of
    2014, filed by the college having been dismissed, these findings of
    deficiencies stood firmly affirmed.
38. The situation at hand is well defined by the latin maxim Commodum
    ex injuria sua nemo habere debet i.e., no one should derive a benefit
    from their own wrong. While the admitted students had undertaken
    to pay the prescribed fees to SRMCH, it is equally true that, upon
    payment of such fees, they were entitled to complete their course
    without any hitch or difficulty. However, what transpired subsequently,
    as noted in the preceding paragraphs, presents an entirely different
    picture. Owing to the deficiencies in SRMCH, its recognition was
    not renewed, resulting in the students being subjected to a very
    tumultuous and volatile situation, putting their future in grave risk.
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       Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


39. Hence, the core question which arises for consideration pertains to
    the manner in which the resultant financial liability is to be apportioned
    between the parties while balancing the equities.
40. It is indicated from the record that, despite directions issued to SRMCH
    to refund the excess fee collected from the students admitted in the
    academic session 2014-2015, the said amount has not been paid
    till date and SRMCH/Selvam Trust continues to retain the same.
41. A bank guarantee to the tune of approximately Rs.10 crores was
    furnished by the Selvam Trust with the MCI/NMC. A further sum
    of Rs.2 crores was deposited by the Trust with the Registry of this
    Court pursuant to the order dated 19th April, 2016. The charts placed
    on record by the transferee colleges indicate that the fee structure
    prevailing in these institutions was substantially higher than that
    being charged by SRMCH.
42. However, since the students were transferred and admitted to these
    colleges pursuant to the directions of this Court in exceptional
    circumstances, the primary brunt of liability must be fastened upon
    SRMCH/Selvam Trust, subject to such adjustments as may be
    permissible in law.
43. It has not been demonstrated before this Court that the MCI/NMC
    has an overriding charge or exclusive lien over the amount of Rs.10
    crores secured by way of bank guarantee furnished by the Selvam
    Trust. Even otherwise, assuming that any such claim exists, the
    MCI/NMC, being a statutory regulatory authority vested with powers
    relating to recognition and de-recognition of medical institutions,
    would be at liberty to take appropriate steps in accordance with law
    to recover applicable levies, if any, from the defaulting institution.

     Disbursal of amounts deposited by the SRMCH/Trust: -
44. We, therefore, direct that the amount of approximately Rs.10 crores
    furnished by the Selvam Trust by way of bank guarantees with the
    MCI/NMC, along with the amount of Rs.2 crores deposited before
    this Court, together with accrued interest thereupon, shall be payable
    to the three transferee colleges.
45. It is accordingly ordered that the amount of approximately Rs.10
    crores covered by the bank guarantee furnished by the Trust with
    the MCI/NMC, shall be made available for distribution amongst
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       the three transferee colleges in equal proportions. The MCI/NMC
       shall ensure that the said amount is released and paid to the three
       colleges in their respective bank accounts within a period of three
       months from today.
46. The amount of Rs.2 crores deposited by the Trust with the Registry
    of this Court, along with accrued interest thereupon, shall also be
    divided into three equal portions and disbursed to the transferee
    colleges.
47. The bank details of the respective colleges shall be furnished before
    the Registry by their respective AOR within a period of two weeks
    from today, upon which the Registry shall take necessary steps for
    disbursement.

       Liability of Students: -
48. An interim arrangement was made by this Court whereby the students
    were permitted to deposit fees in the private medical colleges at
    Government rates. The said fee was approximately one-eighth of the
    fee being charged by SRMCH per semester. However, owing to the
    prevailing circumstances and pursuant to the directions issued by
    this Court, the students were transferred to the applicant colleges,
    where they continued their studies and completed the courses, albeit
    without loss of an academic year save for exceptions. Additionally,
    these students were paid stipends by transferee colleges as and
    where applicable. An argument has been advanced that the students
    did not pay all tranches of the Government fees also. However, it
    would be difficult for this Court to verify the said assertion at this
    belated stage.
49. Going by the chart of calculations prepared by the three applicant
    colleges and placed for perusal of this Court, the students transferred
    to these colleges would have paid approximately Rs.5,39,75,000/- to
    each college, if the fee structure prevailing at SRMCH were to be
    applied. The fee structure of the transferee colleges is slightly higher
    but the learned counsel representing the colleges fairly conceded
    on instructions that they would be satisfied by reimbursement of due
    fees at the rates being charged by SRMCH. Thus, in aggregate,
    the total amount payable to the three colleges would work out to
    approximately Rs.16.2 crores. This amount is significantly lower than
    the fee ordinarily chargeable by the transferee colleges from their
[2026] 6 S.C.R.                                                       261

       Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.


     own students at private rates and does not account for the interest
     which would have accrued in the intervening period. The total amount
     secured by way of bank guarantees furnished by the Trust, together
     with the amount deposited before this Court along with accrued
     interest, would aggregate to approximately Rs.14 crores. Even upon
     applying the fee standards of SRMCH, the transferee colleges would
     still face a shortfall in the recovery of their lawful dues.
50. We may note that the students who have passed out from the
    transferee colleges have virtually undertaken the full MBBS course
    by paying the fees at the Government rates, which would be only a
    pittance of what they would have paid to the SRMCH under normal
    circumstances.
51. The factual situation available on record is not clear on the aspect
    as to the number of students originally admitted in SRMCH under
    the Government quota and those admitted under the private quota/
    management quota.
52. It is also borne out from the record that the transferee colleges had
    obtained undertakings from the transferred students at the time of
    issuance of course-completion documents/certificates, wherein the
    students acknowledged that the issue relating to fee liability was
    pending consideration before this Court and undertook to abide by
    the final directions passed herein. Thus, the passed-out students
    cannot be allowed the benefit of a windfall or a bonanza merely by
    dint of the interim orders passed by this Court, which was in form
    of an emergent measure in order to tide over the situation where
    the students faced imminent risk of losing their entire careers. Now
    that, by virtue of the orders passed by this Court, the students have
    completed the medical courses, it is the right time when they should
    be asked to make good their outstanding fee obligations.
53. The present status of these passed out students is not available
    to the Court. Thus, looking to the piquant situation, we permit
    the transferee colleges to make representations to the MCI/NMC
    with details of the exact shortfall of the fee due from each student
    (applying SRMCH rates) for recovery of their remaining dues, if any.
    It is expected that, upon such representations being made, the NMC
    shall provide due redressal to the colleges for recovery of the deficit
    amount, if any, from these passed out students. Excess amount,
    if any, received from the students may be utilized to recoup the
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       amount of bank guarantee (Rs. 10 Crores) which we have directed
       MCI/NMC to pay to the applicant colleges. Furthermore, at the time
       of evaluation, the MCI/NMC shall take into account and adjust the
       amount initially paid by these students at the time of admission to
       SRMCH. We further provide that observations made in this order
       shall not prejudice the claims/defences, if any, of the Selvam Trust
       or SRCMH in appropriate proceedings, if any.
54. For the sake of clarification and in view of the directions issued
    hereinabove, it is provided that the students who comply with the
    fee liability determined in terms of the present judgment shall be
    entitled to forthwith receive such academic and course-completion
    documents, certificates and other consequential records, which are
    ordinarily issued upon completion of the course and are required
    by the students, in accordance with the applicable rules/regulations.
55. I.A. Nos.73763 of 2019, 69514 of 2019, and 151684 of 2022
    (applications for direction/clarification) are disposed of as above.
    Other pending application(s), if any, shall also stand disposed of.
56. The appeals are closed and consigned to the record.

       Result of the case: Appeals closed.
                            Interlocutory applications disposed of.




       †
           Headnotes prepared by: Nidhi Jain