IMPORTANT POINT
In case of any violation of limit of NRI quota of 15%, it is for UGC to take action. MCI has no jurisdiction.

JUDGMENT :

L. Nageswara Rao, J.

Leave granted.

The instant Appeal arises from a Writ Petition No.12673 of 2005 filed by Manipal University (formerly known as Manipal Academy of Higher Education and Others), wherein the High Court disposed off the Writ Petition giving effect to the directions of this Court in PA Inamdar v. State of Maharastra (2005) 6 SCC 537, until suitable law or regulation is made by the University Grants Commission (UGC) or Central Government. Aggrieved, Manipal University has preferred this Appeal.

2. Two medical colleges were established by Manipal Academic Higher Education in 1953 and 1955 at Manipal and Mangalore. In the year 1978, the UGC recommended to the first Respondent to grant status of Deemed University to Manipal Educational Complex consisting of medical & engineering colleges which was rejected on the ground of paucity of funds. The UGC enquired whether the Appellant would be able to raise the resources if permission was granted for admission of foreign and Indian students in the ratio of 60:40 and sought an undertaking to that effect. The Appellant informed the UGC that it would not seek any aid if it was permitted to make admissions in the ratio of 60:40. The first Respondent granted permission to the Appellant on 12.08.1991 to admit 350 foreign students out of total intake of 550 students for that year.

3. The first Respondent declared the Appellant as a Deemed University on 01.06.1993. Two medical colleges, two dental colleges and one nursing college at Manipal and Mangalore were part of the Appellant University. The General Body of the second Respondent considered the continuance of recognition of MBBS degree granted by the Appellant on 27.08.2002. The Appellant was asked to show cause why action should not be initiated for making admissions to the NRI quota in excess of 15 per cent of the intake in violation of the directions of this Court. After consideration of the explanation of the Appellant, the Second Respondent by its letter on 27.09.2002 requested the first Respondent to withdraw the recognition of MBBS degree granted by the second Respondent for not following the directions of this Court regarding the admission of NRI/foreign students. The first Respondent did not take any action as recommended by the Second Respondent.

4. Thereafter, the second Respondent by its letter dated 08.02.2005 directed the Appellant not to make admissions in the NRI quota for 37 seats in the year 2005-2006, 37 seats for the year 2006-2007 and 29 seats for the year 2007-2008 in Kasturba Medical College, Manipal. It was stated in the said letter that the said direction was being issued to offset the undue advantage gained by the Appellant by admitting 103 students in MBBS course in excess of the permissible 15 per cent NRI quota. A reference was made to an order passed by this Court on 09.08.2004 in Islamic Academy v. State of Karnataka (2003) 6 SCC 697, wherein permission was granted to private unaided colleges to admit NRI students to the extent of 15 per cent of the available seats. The second Respondent also referred to an order passed by this Court on 30.08.2004 in I.A. Nos.19-20 of in SLP No.11244 of 2004 (R.L. Minority Profession Colleges Association v. State of Karnataka and Ors.). By the said order dated 30.08.2004 this Court permitted admission of NRI/foreign students against 15 per cent of the management quota seats in respect of medical, engineering and dental courses in minority unaided professional colleges.

5. The Appellant challenged the directions issued by the second Respondent by its letter dated 08.02.2005 in the High Court of Karnataka by filing Writ Petition 12673 of 2005. The High Court accepted the contention of the Appellant and held that Section 10-A of the Medical Council Act confers power on the second Respondent to determine the intake capacity only. It was further held that the second respondent did not have the power to regulate admissions to sub categories. According to the High