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2014 DIGILAW 366 (MAD)

D. D. Medical College & DD Hospital v. Medical Council of India

2014-02-17

K.KALYANASUNDARAM, M.JAICHANDREN

body2014
Judgment M. Jaichandren, J. 1. Heard the learned counsels appearing for the parties concerned. 2. These miscellaneous petitions have been filed praying that this Court may be pleased to stay the operation of the order passed, on 20.1.2014, in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013, pending disposal of the writ appeals, in W.A.Nos.179, 180, 181, 182 and 183 of 2014. 3. The following issues had been found to have arisen, for being decided in the said batch of writ petitions. "32. (a) Whether the State, MCI and Medical University are bound to regularise the illegal admissions made by D.D. Medical College. (b) Whether the State should be directed to take over the institution. (c) Whether the State Government is bound to take over the responsibility of students admitted for the years 2011-2012 and 2012-2013 in view of the specific undertaking given in the Essentiality Certificate and the favourable stand taken by the University to help the institution to make illegal admissions. (d) Whether MCI was correct in withdrawing the letter of permission. (e) Whether MCI was justified in blacklisting the trust permanently for making application for establishing Medical College." 4. With regard to the withdrawal of the letter of permission, granted by the Medical Council of India for establishing D.D. Medical college and hospital, vide letter dated, 12.7.2010, it had been held, in the order, dated 20.1.2014, that it was justified, as the petitioner herein had violated the law of the land and had cheated the innocent students. However, the blacklisting of the petitioner trust and its trustees had been set aside. A further direction had been issued in the order, dated 20.1.2014, directing the Medical Council of India and the state of Tamil Nadu to admit the students of 2011-2012 and 2012-2013 batches of the petitioner college, in the government medical colleges, during the ensuing academic year. The Medical Council of India had been further directed to issue appropriate orders permitting the state Government to accommodate all the students of the said batches, in the 19 Government colleges in the state of Tamil Nadu, so as to enable them to join the medical courses, during the academic year 2014-2015, and to distribute the students of 2011-2012 and 2012-2013 batches, proportionately, either on the basis of the merit or on the choice of the students. 5. 5. The petitioner medical college has filed the writ appeals, in W.A.Nos.179, 180, 181, 182 and 183 of 2014, challenging the order passed, on 20.1.2014, raising a number of grounds. 6. Mr. V. Prakash, the learned senior counsel appearing on behalf of the petitioner had submitted that certain matters relating to the petitioner Institution and the admission of the students in the said institution are pending on the file of the Supreme Court. While so, the respondents concerned have passed the impugned order without awaiting the result of the cases pending before the Supreme Court. 7. It has been further stated that the petitioner has made out a prima facie case for the grant of an order of interim stay of the order of this Court, dated 20.1.2014. It had also been stated that the balance of convenience is in favour of the petitioner. Further, it would cause irreparable harm and loss to the petitioner, if the interim order is not granted, as prayed for by the petitioner in the present miscellaneous petitions. 8. At this stage of the hearing of the miscellaneous petitions, the learned senior counsel appearing for the petitioner had submitted that the decision to withdraw the permission granted for the establishment of the petitioner college and hospital, by the Board of Governors of the Medical Council of India, for the academic year 2010-2011, and the decision of the Board of Governors to permit the state Government to encash the bank guarantee given by the petitioner, to the tune of Rs.9.50 crores, towards the establishment of the medical college and hospital, are to be stayed till the disposal of the writ appeals. 9. The learned senior counsel for the petitioner had further submitted that the withdrawal of the permission for the establishment of the petitioner college and hospital, if allowed to stand, would render the matters pending before the Supreme Court infructuous. Further, there is no compelling necessity for the Board of the Medical Council of India to withdraw the permission granted in favour of the petitioner, especially, after the students of the petitioner college had been directed to be accommodated in the Government Medical Colleges, by the order passed by this court, dated 20.1.2014, made in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013. 10. 10. It had also been submitted that the petitioner undertakes not to admit students in the petitioner Institute, until the issues are settled, finally, by this Court, in the writ appeals, in W.A.Nos.179, 180, 181, 182 and 183 of 2014, and by the Supreme Court, in the pending Special Leave Petitions. 11. It had been further stated that, if the state Government is permitted to encash the bank guarantee of Rs.9.50 crores, furnished by the petitioner for the establishment of the medical college and hospital, it would cause heavy financial loss to the petitioner. Further, no harm would be caused to the respondents, if the bank guarantee is kept renewed by the petitioner without the same being appropriated by the state Government. 12. It had also been stated that the petitioner has fair chances of succeeding in the writ appeals, in W.A.Nos.179, 180, 181, 182 and 183 of 2014, pending on the file of this Court and in the Special Leave Petitions, which are to be decided by the Supreme Court. 13. Per contra, the learned Advocate General, appearing for the State Government, had submitted that no loss or harm would be caused to the petitioner, if the bank guarantee furnished by it, to the tune of Rs.9.50 crores, is permitted to be encashed by the state Government as per the order passed by the Board of Governors of the Medical Council of India, dated 14.10.2013. Further, the state Government has been directed to accommodate the students of 2011-2012 and 2012-2013 batches of the petitioner college, in the 19 Government Medical Colleges, in the state of Tamil Nadu, so as to enable them to join the first year M.B.B.S. Course, during the academic year 2014-2015. A batch of nearly 150 students had already been given admission in the various medical colleges, as per the directions issued by this Court in its order, dated 20.1.2014, in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013. While so, it would be unfair on the part of the petitioner to claim that the bank guarantee should not be encashed by the state Government, especially, in view of the fact that a huge amount of expenditure would have to be incurred, by the state Government, on the students, who had been accommodated in the various Government Medical Colleges, situated in the state of Tamil Nadu. Further, the petitioner cannot take advantage of its own default. Further, the petitioner cannot take advantage of its own default. In such circumstances, the interim relief, prayed for by the petitioner, ought not to be granted, by this Court, at this stage. 14. Mr. V.P. Raman, the learned counsel appearing for the Medical Council of India, had submitted that certain matters relating to the petitioner are pending before the Supreme Court. Further, the Board of Governors of the Medical Council of India had passed the order, dated 14.10.2013, withdrawing the permission granted in favour of the petitioner, for the establishment of the medical college and hospital, for the academic year 2010-2011. As the petitioner had been involved in a number of unethical practices in the admission of students for the subsequent batches and in the running of the college and hospital, the impugned order had been passed by the Board of Governors of the Medical Council of India. The state Government had already accommodated the students in the various Government colleges in the state of Tamil Nadu, pursuant to the directions issued by this court, by its order, dated 20.1.2014, in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013. 15. Further, the bank guarantee furnished by the petitioner, to the tune of Rs.9.50 crores, had been permitted to be encashed by the state Government. It is for the petitioner to establish its rights and privileges and to show that the establishment of the petitioner college and hospital and the admission of students, for the academic years 2011-2012 and 2012-2013 and for the subsequent academic year, are in accordance with law and the requirements of the Medical Council of India, in the writ appeals pending on the file of this Court and in the Special Leave Petitions, which are to be heard by the Supreme Court. Therefore, the interim relief prayed for by the petitioner, in the miscellaneous petitions, may not be granted by this court. 16. In view of the submissions made by the learned counsels appearing for the parties concerned and on a perusal of the records available, it is noted that the Medical Council of India, vide its letter no.34(41)/2010-Med./797, dated 12.7.2010, had granted permission for the establishment of the D D Medical College and hospital, at Thiruvallur, Chennai. 16. In view of the submissions made by the learned counsels appearing for the parties concerned and on a perusal of the records available, it is noted that the Medical Council of India, vide its letter no.34(41)/2010-Med./797, dated 12.7.2010, had granted permission for the establishment of the D D Medical College and hospital, at Thiruvallur, Chennai. The petitioner had been directed to furnish a bank guarantee, for a sum of Rs.9.50 crores (Rs.2.00 crores towards the medical college and 7.50 crores towards the hospital facilities) as per the letter, dated 12.7.2010. The medical college and hospital had been permitted to be established with an annual intake of 150 students, with effect from 2010-2011, under section 10(A) of the Indian Medical Council Act, 1956. However, the Board of Governors of the Medical Council of India by its decision, dated 14.10.2013, had decided to withdraw the permission issued, vide its letter, dated 12.7.2010, and had also requested the state Government to encash the bank guarantee furnished by the petitioner, to the tune of Rs.9.50 crores. 17. The petitioner had challenged the order, dated 14.10.2013, by way of writ petitions, in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013. By a common order, dated 20.1.2014, made in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013, it had been held that the decisions made by the Board of Governors of the Medical Council of India to withdraw the permission and with regard to the encashment of the bank guarantee are valid in the eye of law. Challenging the said decision, the petitioner had filed the writ appeals before this court, in W.A.Nos.179, 180, 181, 182 and 183 of 2014. It is also noted that certain issues had been raised relating to the petitioner in the Special Leave Petitions pending on the file of the Supreme Court. Further, a batch of nearly 150 students of the petitioner college had been accommodated in the various Government Medical Colleges, pursuant to the order, dated 20.1.2014, made in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013. Further, a batch of nearly 150 students of the petitioner college had been accommodated in the various Government Medical Colleges, pursuant to the order, dated 20.1.2014, made in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013. In such circumstances, in view of the materials available before this Court, we are convinced that the petitioner has made out a prima facie case for granting of an interim order of stay of the withdrawal of the letter of permission, dated 12.7.2010, and the decision of the Board of Governors of the Medical Council of India, to permit the state Government to encash the bank guarantee, as prayed for by the petitioner. 18. It is noted that the letter of permission, dated 12.7.2010, had been issued granting permission to the petitioner to establish the D D Medical College and hospital at Thiruvallur, Chennai, to admit the students for the academic year 2010-2011, with prospective effect. 19. It is the allegation of the Board of Governors of the Medical Council of India that the petitioner had admitted the students in the M.B.B.S. Course, for the academic years 2011-2012 and 2012-13, without obtaining the necessary permission, under section 10-A of the Indian Medical Council Act, 1956. As the said issues are to be decided by this Court, in W.A.Nos.179, 180, 181, 182 and 183 of 2014, we find it appropriate to grant an order of interim of stay of the decision of the Board of Governors of the Medical Council of India to withdraw the permission issued, vide its letter, dated 12.7.2010, by an order, dated 14.10.2013. 20. We also find it appropriate to grant an order of interim stay of the permission granted to the state Government to encash the bank guarantee, furnished by the petitioner, to the tune of Rs.9.50 crores, for the establishment of the medical college and hospital, by the petitioner Trust. Even though a batch of nearly 150 students had been accommodated in the various Government colleges, in the state of Tamil Nadu, by the state Government, as per the directions issued by the order, dated 20.1.2014, made in W.P.Nos.23089, 23090, 27366, 27367 and 28833 of 2013, we find that the balance of convenience is in favour of the petitioner, as irreparable loss and harm would be caused to the petitioner if the state government is permitted to encash the bank guarantee, at this stage. 21. 21. It is also found that the balance of convenience lies in favour of the petitioner, as the core issues are to be decided by this court in the pending writ appeals and by the Supreme Court in the Special Leave Petitions filed before it. Further, the petitioner had undertaken not to admit any more students in the petitioner Institute until the writ appeals, pending on the file of this Court, and the Special Leave Petitions, pending on the file of the Supreme Court, are decided, finally. The petitioner has also undertaken to keep the bank guarantee renewed, until further orders are passed by this court. In such circumstances, We find it appropriate to grant an interim order of stay of the decision of the Board of Governors of the Medical Council of India to withdraw the permission granted, vide letter, dated 12.7.2010, and its decision to permit the state Government to encash the bank guarantee, as prayed for by the petitioner. This order shall continue until further orders.