Holding

The Court held that, despite procedural lapses, the deficiencies noted by the MCI were significant and beyond permissible limits, so renewal of the Letter of Permission for 2017‑18 could not be granted, though students admitted for 2016‑17 may continue.

Summary

The World College of Medical Sciences & Research and Hospital sought a writ of mandamus to quash the order that barred it from admitting MBBS students for the 2017‑18 and 2018‑19 sessions and to obtain renewal of its Letter of Permission (LOP). The Medical Council of India (MCI) inspection in October 2016 identified significant deficiencies in faculty, residents, bed occupancy and other facilities, leading the Competent Authority to debar the college despite the Oversight Committee’s view that some deficiencies were within acceptable limits. The Supreme Court held that the Competent Authority had mechanically relied on the Hearing Committee’s report without giving due weight to the Oversight Committee’s explanations, yet the deficiencies were substantial enough to deny renewal of the LOP for 2017‑18. The Court allowed the students already admitted for 2016‑17 to continue their studies, directed MCI to conduct a fresh inspection within two months for the 2018‑19 session, and ordered that the bank guarantee not be encashed. The petition for renewal of the LOP was therefore dismissed, with the matter placed for further consideration.

Issues considered

Whether the Competent Authority erred by mechanically relying on the Hearing Committee and ignoring the Oversight Committee’s opinion.
Whether the inspection conducted on 26‑27 October 2016 violated Clause 8(3)(l)(d) of the Establishment of Medical College Regulations, 1999 concerning proximity to a major festival.
Whether the deficiencies identified by the MCI justify denial of renewal of the Letter of Permission for the 2017‑18 academic session.
Whether the bank guarantee furnished by the petitioners can be lawfully encashed.
Whether the petitioners are entitled to admit students for the 2017‑18 session.

Legislation cited

Establishment of Medical College Regulations, 1999s. Clause 8(3)(l)(d)
Indian Medical Council Act, 1956s. 10(4)

Subjects

Medical educationLetter of PermissionMedical Council of IndiaInspectionOversight CommitteeFaculty deficiencyBed occupancyWrit petitionArticle 32Renewal of permission

Judgment

[2017] 9 S.C.R. 715 ·

WORLD COLLEGE OF MEDICAL SCIENCES A
& RESEARCH AND HOSPITAL & ANR.
v.
UNION OF INDIA AND ANR.
(Writ Petition (Civil) No. 514of2017)
B
SEPTEMBER 5, 2017
(DIPAK MISRA, CJI, A.M. KHANWILKAR AND .
DR. D.Y. CHANDRACHUD, JJ.J
Education/Educational Institutions - Medical college - MBBS
course - Inspection of Petitioner-College conducted by Medical C
Council of India (MCI), various deficiencies found therein -
Personal hearing given to the Petitioners by Director General of
Health Services (DGHS) which submitted the report to Competent
Authority - Competent AtJthority forwarded .the report to Oversight
Committee (OC) appointed by Supreme Court - OC observed that D
there was no deficiency - However, despite such opinion of OC,
respondent no. J passed order dtd. 31"' May 2017 debarring the
Petitioner from admitting students for the academic sessions 2017-
18 & 2018-19 - Writ petition by Petitioner for quashing the said
order and further, to direct the respondents to grant renewal of
permission to the Petitioner.for the academic session 2017-18 - E
Supreme Court issued directions to the Competent Authority to re-
·consider the matter afresh - Personal hearing granted to the
Petitioner by Hearing Committee - Respondent no.I passed order
confirming its earlier order dated 31" May 2017 - Held: Competent
· Authority mechanically adverted to the recommendations of F
Hearing Committee - It did not examine the matter with respect to
the plea taken by the petitioners which had found favour with the
OC - However, since deficiencies found by MCI during inspection
were significant and beyond permissible limits, no direction is.
being 'issued to the respondents to allow Petitioner to admit students
for the academic session 2017-18 - Petitioners plea for grant of G
renewal of Letter Of Permission (LOP) for the academic session
2017-18 is declined - However, the students already admitted in
the ~etitioner-Col/ege for the flCademic session 2016-2017
are permitted to continue their studies - Further. MCI is directed to
H
715
716 SUPREME COURT REPORTS [2017] 9 S.C.R.

A send its Inspecting Team to the Petitioner-College to consider the
grant of renewal of LOP for the academic session 2018-2019 -
Matter be placed for fiirther consideration - Indian Medical Council
Act, 1956 - Section JOA (4) - Establishment of Medical College
Regulations, 1999 - Clause 8(3)(l)(d).
B Establishment of Medical College Regulations, 1999 -
Cl.8(3){1}(d) - Interpretation of - Plea of Petitioner that inspection
could not have been conducted by MCI on 26th-27th Oct., 2016,
as the said dates were too close to a major national festival (Diwali)
- Held: The said Clause postulates that inspections are not to be
c conducted at least 2 days before and 2 days after important religious
and.festival holidays declared by Central/State Govt - Jn the present
case, the head count was carried out on the first day of inspection,
on 26'" Oct., 2016 - Diwali was on 29'h Oct., 2016, and thus, the
said inspection in no way offended Cl.8.

D · Directing the matter to be placed for further consideration,
the Court ·

HELD: 1.1 The Competent Authority once again failed to
consider the relevant matters in the spirit of the direction given
E by Supreme Court. It mechanically adverted to the
recommendation of the Hearing Committee, which had
reproduced the factual position narrated in the assessment report
in respect of the inspection conducted by Medical Council of
India (MCI) on 26'h·27'h October, 2016. The Competent Authority
did not examine the matter with respect to the specific plea taken
F by the petitioners which had found favour with the OC. The OC
in its recommendation noted that the faculty deficiency was only
06.18% which was within the acceptable norms. The O<;: noted
that the assessing team completely glossed over the fact that
some staff was on leave due to the ensuing Diwali festival and
G that 4· ~faff members had come late after the scheduled time. The
explanation offered by the petitioners in that behalf found favour
with the OC. However, neither the Hearing Committee nor the
Competent Authority dealt with the factual matrix and in particular,
the explanation offered by the petitioners, including the fresh
representation. [Para 101 (725-D-G)
H
WORLD COLLEGE OF MEDICAL SCIENCES 717
& RESEARCH AND HOSPITAL v. U.0.1.

1.2 However, in the present case no directions are being A
issued to the respondents to allow the petitioner medical college
to admit students in the MBBS course for the academic session
2017-2018 as it is found that the MCI, which is an expert body,
. on the day of assessment noticed deficiencies which were
significant and beyond the permissible .limits. No directions are B
being issued for grant of renewal of Letter Of Permission (LOP)
for the academic session 2017-2018. However, it is directed that
the students already admitted in the petitioner medical college
for the academic session 2016-2017 be permitted to continue
their studies. MCI is directed to send its Inspecting Team to the
petitioner college within a period of two months and inform the · C
petitioner college about the deficiencies if any, with option to
remqve the same within the time limit specified in that behalf.
The petitioner medical college shall report its compliance and
.communicate the removal of deficiency to MCI, whereafter it
will be open to the MCI to verify the position and then prepare D
its report to be submitted before this Court. The purpose of said
.inspection would be to consider the renewal of LOP in favour of
petitioner college for tlie academic session 2018-2019. The
respondents are directed to treat the renewal application
submitted by the petitioner college for the academic session 2017-
18 for the academic session 2018-19. The bank guarantee E
furnished by the petitioners shall not be encashed bu( the same
be kept alive until further orders. (Paras 11, 141 1725-H; 726-A;
729-G-H; 730-A-B) .
2. The argument of the petitioners that inspection 'could
not have been conducted 011 2611'-27th October, 2016, as the said F
dates were too close to a major national festival is rejected, in.
view of the interpretation of Clause 8(3)(l)(d) of the
Establishment of Medical College Regulations, 1999~ The said ' :
Clause postulates that the office of the Council shall ensure that
such inspections are not carried out at least 2 days before and 2 G
days after important religious and festival holidays declared by
the Central/State Govt. In the present case, the head count was
carried out on the first day of inspection, on 26th October, 2016,
as noted in the assessment report. Diwali was on 29th October,
2016, and thus, the inspection on 26'b October, 2016 in no way
offended Clause 8. [Para 131 [729-B-DI H
718 SUPREME COURT REPORTS [2017) 9 S.C.R.

A Shri Venkateshwara University through its Registrar and
Another v. Union of India and Another 2017 (11)
SCALE 77 ; Krishna Mohan Medical College and
Hospital & Anr. v. Union of India and Another 2017
(11) SCALE 50 - relied on.
B Global Medical College and Super Speciality Hospital
and Research Centre v. Union of India & Am: 2017 (8)
SCALE 356 - referred to.
Case Law Reference
2017 (8) SCALE 356 referred to Para6
c
2017 (11) SCALE 77 relied on Para 12
2017 (11) SCALE 50 relied on Para 12
CIVIL ORIGINAL JURISDICTION : Writ Petition (Civil) No.
514of2017.
D
Under Article 32 of the Constitution oflndia.
Amit Kumar, Adv. for the Petitioners.
Gaurav Bhatia, Abhishek Singh, Utkarsh Jaiswal, Advs. for the
Respondents.
E The Judgment of the Court was delivered by
·A.M. KHANWILKAR, J. 1. The petitioners have filed this writ
petition for issuance of a writ of mandamus or any other appropriate
writ, for quashing the order passed by respondent No. I dated 31" May,
2017, debarring the petitioner medical college from admitting students in
F the MBBS course for the academic sessions 2017-18 and 2018-19 and
authorising the respondent No.2 Medical Council of India (for short
"MCI") to encash the bank guarantee of Rs.2 crore offered by th$!
petitioners and further, to direct the respondents to grant renewal of
permission to the petitioner medical college for the academic session
G 2017-18 and permit the college to admit students for the current year.
2. One Arnma Chandravati Educational and Charitable Trust, New
Delhi had applied to respondent No.I, Ministry of Health & Family
Welfare, Government of India (for short "MHFW") for permission to
establish a medical college at Jhajjar, Haryana in the name and style of
H 'World College of Medical Sciences & Research, Jhajjar' from the
. WORLD COLLEGE OF MEDICAL SCIENCES & RESEARCH 719
AND HOSPITAL v. U.O.I. [A.M. KHANWILKAR, J.]

academic session 2016-17 onwards. In light ofthe opinion of the Oversight A
Committee (for short "OC") appointed by this Court, the MHFW vide
letter/order dated 20th August, 2016, issued a Letter of Pennission to the
petitioners to establish the medical college, for the academic session
2016-17, subject to certain conditions, including submission of a bank
guarantee of Rs.2 crore and inspection to be carried out by the OC for B
verification of compliance.
3. Thereafter, MCI conducted an assessment on 26'h-27'h October,
2016 with regard to verification of the conditions stipulated in the Letter
of Permission issued on 201hAugust, 2016 and after considering this
assessment report, the Executive Committee of the MCI, in its meeting C
held on 22"d December, 2016, noted certain deficiencies in the petitioner
college. The MCI, vide letter dated 26'11 December, 2016, submitted 'its
recommendation to the Central Government that the petitioner college
should be debarred from admitting students for two academic sessions
·i.e. 2017-18 & 2018-19 and that the bank guarantee furnished by the
petitioners ought to be encashed. After receipt of the said D
recommendation, the Director General of Health Services (for sho11
"DGHS") gaye a personal hearing to the petitioners on l 7tJi January,
2017 and then submitted its report to the Competent Authority. The
relevant portion of the report reads thus:
"12. Whereas the Ministry decided to grant a personal E
hearing to the College on 17.01.2017 by the DGHS. The
Hearing Committee after considering the oral and written
submission of the College, submitted its report to the Ministry.
In its report, the Hearing Committee remarked as under:

Sri. Deficiencies reported by MCI Remarks of hearing F
No. c01rmittee
i. Deficiency of faculty is 2923% as No sati .yfiictory reply
detailed in the report .

ii. Shortage of Residents is 28.26% as No sati.yfactory reply
detailed iii the report. G
iii. Bed O:cupon::y is 34% 011 day <l No sati.yjactory reply
assessment.
iv. There wa\' ,'.'![, Normal Delivery & NIL No sati.~fiictmy reply
Caesarean Section on day of assessment.
There war NIL ooman in Labour Ro0111.
H
720 SUPREME COURT REPORTS · [2017] 9 S.C.R.

A
v. ---
!CUs:- There Wal' NIL JXJliert in !CCV &
M!CU, aily 1 in MaJ/PlaJ air/ ooly 2 in
SICU on dry ofcl!se;smerl.
vi. Centrd librcry: It is pcrtici{v air- To be verifi«i in,
wultioned. There is m sepcrt:tion of 11t"!dicd ccilege
B Stuti!nts' Pl!adng Roan (Outsiti!) &
fiucknts' Realing roan (lmick).
vii. Amt~ deJXJf1ment: There ere aily 65 To be ve.riji«i in
nvunted specimens. medicd college"

c 4. The Competent Authority forwarded the said report to the OC
for guidance, which then conveyed its opinion to the MHFW vide letter
dated 14lhMay,2017,asfollows:
"(i)Facu/ty:- The College has explained the grounds on which
the assessors had not accepted the 4 faculty members. Faculty
D deficiency of 06.18% is within acceptable limits.
(U on leave + 4 not considered being late) Which is
acceptable; hence there is no deficiency.
(ii)Residents:- The College has explained the grounds 011
E which the assessors had not accepted the 6 residents. Resident
deficiency is 08. 69% (3 on leave+6 not considered being late)
which is acceptable. Hence there is no deficiency.
(iii)Bed Occupancy:- The College has explained the grounds
which are acceptable and hence there is no deficiency.
F (iv)Deliveries:- This deficiency is subjective. No MSR.
(v)JCUs:- This -aeficiency is subjective. No MSR.
(vi)Central Library:- Explanation of the College is acceptable.
(vii)Anatomy department:- This deficiency is subjective. No
G MSR.
LOP Confirmed "
5. Despite the aforesaid opinion of the OC, confirming that there
was no deficiency, respondent No. l passed an order on 31" May, 2017,
whereby it debarred the petitioner medical college from admitting students
H
WORLD COLLEGE OF MEDICAL SCIENCES & RESEARCH 721
AND HOSPITAL v. U.0.1. [A.M. KHANWILKAR, J.]

for two academic sessions i.e. 2017-18 and 2018-19 and also authorised A
the MCI to encash.the bank guarantee offered by the petitioners.
6. Aggrieved, the petitioners filed this writ petition on 3rd July,
2017 and the same was heard along with connected matters involving
similar issues, being Global Medical College and Super Speciality
Hospital and Research Centre v Union of India & Anr. 1 This Court B
vide judgment and order dated l" August, 2017 issued directions to the
Competent Authority to reconsider the matter afresh and to record
reasons. The relevant portion of the order reads as under:
"24. Having regard to the fact that the Oversight Committee
has been constituted by this Court and is also empowered to C
oversee all statutory functions under the Act, and further all
policy decisions of the MCI would require its approval, its
recommendations, to state the least, on the is.s;ue of
establishment of a medical college, as in this case, can by no
means be disregarded or left out of consideration. Noticeably, D
this Court did also empower the Oversight Committee to issue
appropriate remedial directions. In our view, in the overall
perspective, the materials on record bearing on the claim of
the petitioner institutions/colleges for confirmation of the
conditional letters of permission granted to them require a
fresh consideration to obviate the possibility of any injustice E
in the process.
25. In the above persuasive premise, the Central Government
is hereby ordered to consider a.fresh the materials on record
pertaining to the issue of confirmation or otherwise of the
letter of permission granted to the petitioner colleges/ F
institutions. We make it clear that in undertaking this exercise,
the Central Government would re-evaluate the
recommendations/views of the MCI, Hearing Committee,
DGHS artd the Oversight Committee, as available on records.
It would dso afford an opportunity of liearing to the petitioner G
colleges/insti.'utions to the extent necessary. The process of
hearing and final reasoned decision thereon, as ordered,
would be completed peremptr:.rily wi({iin a period of 10 days

'2017 (8) SCALE 356
H
722 SUPREME COURT REP.ORTS [2017)-9 S.C.R.

A from today. The parties would unfailingly co-operate in
compliance of this direction to meet the time frame fixed. "
Iii light of the aforesaid order, the petitioners were granted a fresh
hearing before respondent No. I on 3"' August, 2017 during which the
petitioners submitted a fresh representation to respondent No~ I. Despite
B the fresh hearing, respondent No. I issued an order dated Io•• August,
2017, confirming its earlier order and rejected the said representation.
The relevant portion of the order is enumerated hereunder:
"16. Now, in compliance with the above direction of Hon'ble (
Supreme Court dated 01.08.2017, the Ministry granted
c hearing to the college on 03.08.2017. Ihe Hearing Committee
after considering the record and oral & written submission
of the college submitted its report to the Ministry. The findings
of Hearing Committee are as under:
The committee noted that the inspection was conducted on
D 26'• - 27•• October. 2016. Diwali was on 29•• October. The
awment ofthe college that the inspection was too close to <1
maior national festival cannot be disputed.
As per regulations MCI should not conduct inspections two
days before or after major festivals. Jn this case the head
E count on the first dqv ofinspection on 26.10.2016 was 3 dm•s
before Diwali.
Further. JO faculty have been verified by the assessors but
were not considered in head count since they came later than
the avoointed time of 11 :00 AM. The college has submitted
F declaration form for the 27 facultvlresidents who were not
conside~ed by MCI. The salary slips in respect of these 27
staffe do -not bear details of bank account. PAN/PRAN etc.
The college has submitted from MCI vendor that the Biometric
Attendance Machine ha11e been installed. It suggests 140
G faculty are available of which 112 were enrolled. Since this
happened subsequentlv to the inspection. it does not have
bearing on the extent ofdeliciencv as on the dqv ofinspection.
The bed occupancy fir:ure of 62% as' claimed by the college
is supported by the MRD data. The assessors have noted as ·
only 34%.
H
.
'
I•
WORLD COLLEGE OF MEDICAL SCIENCES & RESEARCH 723
. AND HOSPITAL v. tJ.O.l. [A.M. KHANWILKAR, J.]

Jn view of the magnitude of the deficiencies pointed out in A
the inspection the Committee agrees with the decision of the
Ministry conveyed by letter dated 31.05.2017 to debar the
college for 2 years and also permit MCI to encash bank
guarantee.
17. Accepting the recommendations of the Hearing Committee, B
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."
7. The petitioners, aggrieved by the aforementioned decision, have c
filed ari Interlocutory Application in the pending writ petition bearing
I.A. No. 79050 of 2017, praying for quashing the orders passed by
respondent No.l dated 31" May, 2017 and lO'h August, 2017, which
debarred the petitioner college for two years and authorised respondent
No.2 to encash the bank guarantee of Rs.2 crore offered by the
petitioners. The petitioners have also prayed for further direction against D
the respondents to confirm the LOP of the petitioner medical college for
the year 2016-17 and grant renewal of permission to the petitioner
medical college for the academic session 2017-18 and allow the peti-
tioner medical college to admit 150 students in the MBBS course for the
academic session 2017-18 by participating in the current year E
counselling process on the basis of conditional LOP. This application has
been heard along with the writ petition.
8. The petitioners contend that the Competent Authority has once·
again passed a mechanical order without considering the relevant record
and completely disregarded the opinion of the OC, which was after due F
consideration of the explanation offered by the petitioner-s. It is submit-
ted that the inspection conducted on 261h-27•h October, 2016 was too
close to a major national festival. That fact is not in dispute as Diwali
was on 29th October, 2016. It was not permissible to conduct inspection
two days before or after any major festival. That stipulation is to obviate
the possibility of ascertaining the correct position regarding the faculty, G
residents, bed occupancy and absence on account of the festival. It is
submitted that the inspecting team adopted a hyper technical approach
in ignoring the presence of staff/faculty who came in later than the
appointed time of 11.00 a.m. The explanation offered by the petitioners
had found favour with the OC. Further, the factum of salary slips, in H
724 SUPREME COURT REPORTS [2017] 9 S.C.R.

A rer.pect of27 staff members, which did not bear details of bank account
PAN/PRAN etc., was in the nature of clerical lapse and not pertaining......
to infrastructure and academic requirement. If the inspecting team had~
any suspicion, it could have made further inquiries to reassure itself
before reckoning that fact to deny grant of permission. Significantly, the
B college had submitted Biometric Attendance Machine records but that
has been completely disregarded because it was furnished subsequent
to the inspection. The Competent Authority mechanically adopted the
same reasons given by the MCI, as on the earlier occasion, which
rendered the statutory remedy under Section IOA (4) of the Indian
Medical Council Act, 1956, meaningless. The statutory remedy provided
C by the enactment is to enable the college to produce material in rebuttal
of a fact noticed by the MCI in its negative recommendation. Similarly,
the explanation offered by the college regarding bed occupancy,
supported by MRD data, has been disregarded and instead the noting
made by the Assessing Officer has been preferred. It is submitted that
the avowed object of relegating the petitioner college before the
0
Competent Authority, with direction to the Competent Authority to
reconsider the entire matter afresh and to record reasons, has been
defeated by the mechanical approach adopted by the Competent
Authority. No analysis has been done in reference to the opinion
recorded by the OC in its letter dated 14'h May, 2017, which had
E accepted the explanation offered by the petitioners. The Competent
Authority has not given any tangible reason as to why the opinion of the
OC was incorrect or unacceptable. It is therefore submitted that the
writ petition and the application be allowed and appropriate directions be
issued to the respondents.
F 9. The respondents, on the other hand, would contend that it is not
open to this Court to sit over the subjective satisfaction of the inspecting
body, which is an independent body consisting of respectable persons
from the field of medicine. It is submitted that no fault can be found with
the decision of the Competent Authority, which has decided the matter
on the basis of the recommendation made by the MCI. The impugned
G decision is a well considered one and deals with all the relevant matters
necessitating the action of debarring the petitioner college from
admitting students for two academic sessions and authorising MCI to
encash the bank guarantee of Rs.2 crore offered by the petitioners. The
respondents have essentially relied on the assessment repo1t founded on
H the information gathered during the inspection conducted on 2611i-z7th
WORLD COLLEGE OF MEDICAL SCIENCES & RESEARCH 725
AND HOSPITAL v.U.0.1. [A.M. KHANWILKAR, J.]

October, 2016. It is submitted that the verification and head count was A
done on 26'h October, 2016, which was three days before
Diwali, inasmuch as Diwali was on 29'h October, 2016. Accordingly, the
head count conducted on 26'h October, 2016 was not in breach of the
statutory provision. Hence, the finding of the assessors could neither be
·ignored nor disregarded on lhe basis of some specious plea taken.by the B
college. Moreso, because discrepancy was also noticed in the salary
· slips in respect of almost 27 staff members, raising grave suspicion. It is
submitted that even the finding regarding bed occupancy noted in the
assessment report cannot be taken lightly, merely because the
petitioners are relying on MRD data . The possibility of manipulating the
MRD data cannot be ruled out. Further, the physical verification done C
by an independent agency on the spot must be given more credence,
particularly when the statutory authority such as MCI and Competent
Authority have accepted the same. The respondents contend that the
writ petition is devoid of merits and ought to be dismissed.
10. Having considered the rival submissions, we are in agreement . D
with the petitioners that the Competent Authority has once again failed
to consider the relevant matters in the spirit of the direction given by this
Court on l" August, 2017. It has mechanically adverted to the
recommendation of the Hearing Committee, which, in turn, has .
reproduced the factual position narrated in the assessment report in
respect of the inspection conducted on 26'h·27tl' October, 2016. The E
Competent Authority has not examined the matter with respect to the
specific plea taken by the petitioners which had found favour with the ·
OC. The OC in its recommendation dated l 4'h May, 2017 had noted that
the faculty.deficiency was only 06.18% which was within the acceptable .
norms. The OC had noted that the assessing team completely glossed F
over the fact that some staff was on leave due .to the ensuing Diwali
festival and that 4 staff members had come late after the scheduled
time. The explanation offered by the petitioners in that behalf found
favour with the .OC. However, neither the Hearing Committee nor the
Competent Authority has dealt with the {actual matrix and in particular,
the explanation offered by the petitioners, including the fresh G
representation.
11. Having said thus, we would have proceeded to isstie directions
to the respondents to allow the petitioner medical college to admit
students in the MBBS course for the . academic session 2017-2018.
H
726 SUPREME COURT REPORTS [2017] 9 S.C.R.

A However, in the present case, we find that the MCI, which is an expert
body, on the day of assessment has noticed deficiency of 29.23% of
Faculty, 28.26% of Residents and 34% of Bed Occupancy, each of which
was beyond the permissible limits. It has also taken into account the
factum of'Nil Normal Delivery' and 'NIL Caesarean Section' on the
B day of the assessment. . Further, there was only 1 patient in NICU/
PICU and 2 in SICU on the day of assessment and none in !CCU and
MICU. It has also noticed that the Central Library was partially
air-conditioned and there was no separation of Students' Reading Room
(Outside) and Students' Reading Room (Inside). Further, there were
only 65 mounted specimens in the Anatomy Department. Indeed, the
C OC in its letter dated J4lh May, 2017 has noted that the explanation
submitted by the college regarding deficiencies of Faculty, Residents
and Bed Occupancy was acceptable and, therefore, within the
permissible norms. As has been noticed earlier, the Competent
Authority in the impugned decision did not accept the explanation offered
D by the petitioner college but, as aforesaid, no analysis is found in the
impugned decision as to why the same was rejected and, moreso, no
tangible reason is forthcoming as to why it chose to deviate from the
opinion expressed by the OC. At the same time, we also find that the
OC has not dealt with the factum noticed by the Competent Authority in
the impugned decision that the salary slips in respect of 27 staff
E members of the college did not bear details of bank account, PAN, PRAN
etc. That presupposes that there was no clear identity about the staff
employed by the college to the extent of 27 persons which is quite
significant and raises grave suspicion. The communication sent by the
OC also does not explain as to why the Bed Occupancy figure of 62%,
as claimed by the college, should be accepted as against the physical
F verification done by the assessor on the given day which found only
34% Bed Occupancy. The OC has also not recorded any reason as to
why the abysmal level of occupancy and indoor patients in ICCU/ MlCU/
PICU and SICU was irrelevant. Absence of indoor patients was a
reflection on the performance of the hospital as a whole, which
G inevitably would deprive the students of the said college of proper
experience and exposure. The deficiencies noticed by the MCI were
significant and beyond the permissible limits and the Competent
Authority has not dealt with the relevant material including the fresh
representation submitted by the petitioners.
H
WORLD COLLEGE OF MEDICAL SCIENCES & RESEARCH 727
AND HOSPITAL v. U.O.I. [A.M. KHANWILKAR, J.]

12. As we are not satisfied with the manner in which the A
Competent Authority has handled the issue in spite of remitting the matter
·for reconsideration and for recording reasons, we may follow the course
adopted in the case of Shri Venkateshwara University through its
Registrar and Another Versus Union of India and A'notlrer2, and
Krishna Mohan Medical College and Hospital & Anr. Versus Union B
of India and Another. In the latter case, the Court observed thus:-
"21. No endeavour whatsoever, in our comprehension, has
been made by the respondents and that too in the face of an
unequivocal direction by this Court, to fairly and
consummately examine the materials on record in details
before recording a final decision on the issue of C
confirmation or otherwise of the LOP granted to the petitioner
college/institution as on 12.09.2016. True it is that the
Regulations do provide for certain norms of infrastructure to
be complied with by the applicant college/institution for
being qualified for the LOP depending on the stages involved. D
This however does not obviate the inalienable necessity of
affording a reasonable opportunity of hearing to the person
or the college/institution concerned vis-a-vis the scheme for
establishment of a college before disapproving the same. The
manner in which the respondents, in the individual facts of
the instant ca.~e. have approached the issue, leads to the E
inevitable conclusion that the materials on records do not
support determinatively the allegation of deficiency in course
of the process undertaken, as alleged. We are thus of the
considered opinion that in view of the persistent defaults and
shortcomings in the decision making process of the F
respondents, the petitioner college/institution ought not to be
penalised. Having regard to the progression of events, the
assertions made by the petitioners in the representations
countering the deficiencies alleged, the observations/views
expressed by the Oversight Committee in its communication
dated 14.05.2017 and the DGHS in the hearing held on G
17.01.2017 negate the findings with regard to the
deficiencies as recorded by the assessors of the MCI in the
inspections held. Consequently, on an overall view of the
'Writ Petition (C) No. 445 of2017, decided on 1" September, 2017.
'Writ Petition (C) No. 448 of2017, decided on I" September, 2017. H
728 SUPREME COURT REPORTS (2017] 9 S.C.R.

A materials available on record and balancing all relevant
aspects, we are of the considered opinion that the conditional
LOP granted to the petitioner college/institution on 12. 09.2016
·for the academic year 2016-17 deserves to be confirmed. We
order accordingly. However, as the Act and Regulations
framed thereunder have been envisioned to attain the highest
B
standards of medical education, we direct the Central
Government/MCI to cause a fresh impection of the petitioner
college/institution to be made in accordance therewith.for the
academic year 2018-19 and lay the report in respect thereof
before this Court within a period of eight weeks ~ierefrom. A
c copy of the report, needless to -state, would be jumished to
the petitioner college/institution at the earliest so as to
enable it to avail its remedies, if'so advised, under the act and
the Regulations. The Central Government/MCI _would not
encash the bank guaranteed furnished by the petitioner
college/institution. For the present, the impugned order dated
D
.J0.8.2017 stands modified to this extent only. The direction
for a writ, order or direction to the respondents to permit the
petitioner college/institution to admit students for the
academic year 2017-18, in the facts of the case, is declined.
The Registry' would list the writ petition and I.A. No. 73716 of
E 2017 immediately after the expily of period of eight weeks,
as above mentioned. "
In the case of Shri Venkateshwara University (supra), this Court
observed thus:-
"/ 7. Though we have so held, yet we think it appropriate that
F the students who have been admitted in the institution for the
academic session 2016-2017, shall continue their studies. The
MCI shall send the inspecting team to the Institution within a
period of two months. After the report is filed, the MCI shall
apprise the Institution with regard to the d£;/iciencies and give
G a date for removal of the same so that the Institution would
be in a position to do the needful. We may hasten to add that
the inspection that will be carried out and the further follow
up action shall be done for the academic session Q0/8-2019.
16 18. As we intend to appreciate the inJpection report and
the deficiencies and the action taken up thereon by the
H
. :· . . ·.

WORLD COLLEGE OF MEDICAL SCIENCES&. RESEARCH 729
AND HOSPITAL v. U.0.I. [A.M. KHANWlLKAR, J.] .
. . . ., ·... ' ' . ' . . .·.

institution, list the matter .on 15th No~ember. 20l 7. The . A
renewal application that was submitted for: the academic
session 2017-201 Smay be treated as the applicationfor the
academic session 2018"2019. The bank guarantee which has
been deposited shall not be encashed and be kept alive. "
\ ' '

. 13. Be that as it may, we shall revert to the grievanceof the B
petitioners that inspection could not have been .conducted on 261h-27°1
October, 2016, as the said dates were too close to a major national
festival. This. argument deserves to be rejected, bearing in mind the
interpretation of Clause 8(3)(l)(d) ofthe Establishment of Medical
College Regulations, 1999 in the case of Shri Venkateshwara U11iversity C
· (supra), which postulates that the office of the Council shall ensure that
such inspections are not carried out at least 2 days before and 2 days
after important religious and festival holidays dedared. by the Central/ ..
State Govt. In the present case, the head count was carried out on the
first day of inspection, on261hOctober, 2016; as noted in the assessment
report. Diwali was on 29'h October, 2016, and thus, the inspection on D
26'h October, 2016 in no way offended Clause 8. Further,ifthe argument
of the petitioners was to be accepted, it would result in 'a situation where ·
the inspection report dated 26<h-27'h October, 20l6 will have to be
discarded as a whole. As the feasibility of grant of LOP for medical
college is essentially founded on such assessment report, if that report is
to be discarded then the petitioners cannot get any relief whatsoever, E
. without fresh inspection. It is not necessary for us to dilate either on this
·aspect or any other contention raised by the petitioners as we are inclined
to adopt the course predicated in the aforementioned t\vo recent decisions
of this Court.
14. Accordingly, we deem it appropriate to direct that the students F ·
alreadyadmitted inthe petitioner medical college for the academic session
2016-2017 be permitted to continue their studies. However, we decline
to issue directions for grant of renewal of LOP for the academic session
2017-2018 . We direct MCI to send its Inspecting Team to the petitioner ·
college within a period of two months and inform the petitioner college G
about the deficiencies if any, with option to remove the same within the
time limit specified in that behalf. The petitioner medical college shall
.report its compliance and .communicate the removal of deficiency to
MCI, whereafter it will be open to the MCI to verify the position and
then prepare its report to be submitted before this Court. Be it noted
H
730 SUPREME COURT REPORTS [2017] 9 S.C.R.

A that the purpose of said inspection would be to consider the renewal of
LOP in favour of petitioner college for the academic session 2018-2019.
We further direct the respondents to treat the renewal application
submitted by the petitioner college for the academic session 2017-18 for
the academic session 2018-19. The bank guarantee furnished by the
B petitioners shall not be encashed but the same be kept alive until further
orders. The Registry shall place the matter for further consideration
after ten weeks.

Divya Pandey Matter to be placed for
further consideration.