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2024 Supreme(Ker) 1636

IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J.
MALABAR MEDICAL COLLEGE HOSPITAL & RESEARCH CENTRE – Petitioner
Versus
STATE OF KERALA – Respondent
W.P. (C) No. 43680 of 2023, W.P. (C) Nos. 34739, 41570 of 2024
Decided On : 10-12-2024

Advocates:
Advocate Appeared:
For the Petitioners: S. VINOD BHAT, ANAGHA LAKSHMY RAMAN, V. NAMITHA, GITANJALI SADAN PILLAI, GREESHMA CHANDRIKA R.
For the Respondents: BINNY THOMAS, K.S. PRENJITH KUMAR, P. SREEKUMAR, P.G. PRAMOD, T.C. KRISHNA

The court affirmed that Essentiality Certificates are required for starting new medical courses, and the State's demand for a Bank Guarantee to ensure financial viability is lawful.

Headnote:(A) Constitution of India - Article 19(1)(g) - Essentiality Certificate - The petitioner sought to start new courses and enhance seats in medical education without prior approval from the State. The court held that EC/NOC from the State is a prerequisite for such applications. (Paras 16, 30)

(B) Medical Council Act, 1956 - The court discussed the role of the State in issuing Essentiality Certificates and the necessity of Bank Guarantees for financial viability in medical education. The court found no illegality in the State's demand for a Bank Guarantee to secure stipends for students. (Paras 24, 30)

Facts of the case:
The petitioner, a medical college, filed three writ petitions challenging the rejection of applications for new courses and the demand for a Bank Guarantee for issuing Essentiality Certificates. The college argued that the State's requirements were onerous and infringe upon their rights under the Constitution.

Findings of Court:
The court found that the petitioner was not entitled to the reliefs sought and upheld the State's requirements for Essentiality Certificates and Bank Guarantees.

Issues: The main issues included the necessity of EC/NOC from the State for starting new courses and the legality of the Bank Guarantee demand.

Ratio Decidendi: The court ruled that the Essentiality Certificate is a requirement for starting new courses, and the State's demand for a Bank Guarantee is justified to ensure financial viability and protect student interests.

Result: Writ petitions dismissed.

JUDGMENT :

N. NAGARESH, J.

1. These three writ petitions are filed by the Malabar Medical College Hospital and Research Centre. In W.P. (C) No. 43680 of 2023, the petitioner seeks to direct the 2nd respondent-Kerala University of Health Sciences to enable the petitioner to prefer applications for start of new courses/enhancement in number of seats in various courses mentioned in Ext.P7 without EC/NOC from the 1st respondent-State of Kerala. The petitioner also seeks to consider their Ext.P7 application for Essentialty Certificate for starting/enhancement of seats for Medical Postgraduate Courses and to consider Ext.P8 application to expedite the issuance of Essentiality Certificate.

2. In W.P. (C) No. 34739 of 2024, the petitioner seeks to quash Exts.P4 and P5 to the extent that the petitioner's applications for MD General Medicine, MS General Surgery, MS Orthopedics, MD Dermatology and MS ENT, were rejected.

3. In W.P. (C) No. 41570 of 2024, the petitioner seeks to declare that the demand of Rs. 3,27,60,000/- for starting new Self Financing Medical College/enhancement of seats/starting of MBBS/PG Courses in existing Self Financing Medical Colleges in the State with annual revaluation, is ultravires the Constitution. The petitioner seeks to quash Exts.P11 and P12.

4. The petitioner-College provides MBBS Courses with 200 seats and MD/MS Courses in various subjects with 54 seats. Nine Postgraduate Courses were started in the year 2020-2021 and the first batch of students have passed the examination with hundred percent results. Therefore, the petitioner is eligible and entitled to start new courses and for increase in the number of seats in the existing Post Graduate Courses, as per the norms of the Kerala University of Health Sciences, contends the petitioner.

5. The petitioner submitted application dated 05.05.2023 before the Post Graduate Medical Education Board for inspection of the final examination of the courses conducted by the petitioner, for grant of recognition. The Board inspected the examinations, but has not granted recognition to the nine Post Graduate courses run by the petitioner.

6. The 2nd respondent-University issued notification dated 17.10.2023 inviting applications for start of new courses and increase in number of seats in the existing courses. The petitioner preferred application dated 09.11.2023 before the 1st respondent-State of Kerala to grant Essentiality Certificate (EC) for start of/increase of seats in nine Post Graduate Courses for the academic year 20252026. Though the 1st respondent issued EC, it was not in the prescribed format as required by the University. Therefore, the petitioner lost the opportunity in the previous academic year. The petitioner, therefore, prayed that the 2nd respondent-University be directed to enable the petitioner to prefer applications for start of new courses/enhancement of number of seats in various courses without EC/NOC from the 1st respondent.

7. When W.P. (C) No. 43680 of 2023 was pending, the University issued communications dated 08.04.2024 and 22.07.2024 declining the application for enhancement of seats on the ground that the petitioner has not produced valid EC and that the first batch of Post Graduate students have not passed out. Hence, W.P. (C) No. 34739 of 2024 was filed challenging Ext.P4 communication dated 08.04.2024 and Ext.P5 communication dated 22.07.2024.

8. During the pendency of W.P. (C) No. 43680 of 2023, the Government issued a letter dated 01.11.2024 to the petitioner requiring to provide Bank Guarantee from a Scheduled Bank for an amount of Rs. 3,27,60,000/- for issuing Essentiality Certificate for starting new Self Financing Medical Colleges/enhancement of seats/starting of MBBS/Post Graduate Courses in the existing Self Financing Medical Colleges in the State with annual re-validation of the same.

9. The petitioner is challenging the said letter dated 01.11.2024, which is marked as Ext.P12 in W.P. (C) No. 41570 of 2024. The petitioner states that t

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