Reservation of seats for local students in admission to newly established medical college.

R.Jayasimha Babu, J.

The Madras Medical Mission (appellant) established in 1982 at Chennai by the members of Orthodax Syrian Church, is a society registered under the Tamil Nadu Societies Registration Act, 1975. It has established an institute for Cardio Vascular diseases, an institute for Reproductive Medicines for Women's Health and a Transplant Center for organ transplantation. It has recently set up a 300 bed hospital and has established facilities for commencing a new medical college at Ganapathichettykulam, Kalapet, Pondicherry under the name and style of 'Pondicherry Institute of Medical Sciences' (PIMS). The estimated project cost is Rs.80.00 crores of which Rs.46.00 crores which includes borrowed funds of Rs.34.00 crores is said to have been already invested.

2. It applied to the Central Government in the year 2001 for permission to establish the new medical college commencing from the academic year 2002-03, such permission having been sought in terms of Section 10A read with Section 33 of the Indian Medical Council Act, 1956, (Act No.102 of 1956) and the Admission to Medical College Regulations, 1999 framed by the Medical Council of India under Section 33 of the said Act. The Government of Pondicherry had, on 07.12.2000 granted Essentiality Certificate for establishing this medical college with 100 seats. In that certificate it was noted that the doctor population ratio in Pondicherry is 1:950 while the doctor population ratio in India is 1:2083. The Pondicherry University also had, on 14.08.2001 given it's consent in principle to affiliate the PIMS to the University subject to the grant of permission by the Government of India under Section 10A of the Indian Medical Council Act.

3. On 01.03.2002 the Ministry of Health and Family Welfare of Government of India informed the appellant that the appellant's proposal had been referred to the Medical Council of India for its evaluation and recommendation, and that after considering the scheme, and taking into consideration the recommendations of the Medical Council of India, the Ministry had come to the conclusion that a letter of intent for establishing the new medical college at Pondicherry by the appellant with an annual intake of 100 (one hundred) students with prospective effect, under Section 10(A) of the Indian Medical Council Act may be issued. That letter of intent also stated that the action to grant formal permission for starting the new college would be initiated on receipt of a compliance letter with regard to the three conditions set out in that letter.

4. Shortly thereafter, the appellant sought formal letter of permission from the Government, as by then it had established a hospital with 326 beds which had commenced functioning from October 2001, and a multi-storeyed building for the basic departments had been completed, was fully equipped, and was functional.

5. The Medical Council of India thereafter carried out an inspection on 19th June 2002. The few deficiencies pointed out by the Inspection Committee were, according to the appellant, complied with and the compliance report was submitted on 16th July, 2002. As letter of permission was not received even thereafter, the appellant as also several other similarly placed applicants who had proposed to start medical colleges approached the Supreme Court of India. On 30.10.2002 the Honourable Supreme Court directed the Executive Committee of the Medical Council to decide the pending applications of various colleges and directed that an appropriate report be sent to the Court on or before 15th of November 2002.

6. Thereafter, on November 14, 2002, Ministry of Health and Family Welfare of Government of India conveyed to the appellant "approval of the Central Government to the establishment of a new medical college in the name and style of 'Pondicherry Institute of Medical Sciences' at Pondicherry ........ with an annual intake of 100 (one hundred only) students with prospective effect, i.e. from the a