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2025 Supreme(Online)(AP) 14453

HIGH COURT OF ANDHRA PRADESH
DHIRAJ SINGH THAKUR, CJ, R RAGHUNANDAN RAO, J
Srinivasa Educational Academy – Appellant
Versus
The State Of AP – Respondent
Writ Petition No: 4484 of 2019 | W.P.Nos.2212 | 5949 | 6748 | 7619 of 2019 | 22536 of 2024



Advocates:
For the Appellants/Petitioners: Mr. P. Sri Raghu Ram, Senior Counsel, appearing vice Mr. Patanjali Pamidighantam
For the Respondents: Mr. Vivek Chandra Sekhar S, for NMC; Mrs. S. Pranathi, Special Government Pleader

The cancellation of an Essentiality Certificate is invalid if influenced by external pressures, affirming the need for independent decision-making by authorities.

Headnote:(A) Indian Medical Council Act, 1956 - Sections 10A and 33 - Essentiality Certificate for establishing medical college - Cancellation of Essentiality Certificate challenged - Petitioners argued that cancellation was unjustified as deficiencies were being addressed - Court emphasized the importance of adequate infrastructure and adherence to medical education regulations - Past inspections showing deficiencies did not negate progress made - On appeal, essentiality certificate cancellation quashed. (Paras 1, 7, 64)

(B) Administrative Law - Delegation of Power - Powers exercised under pressure or direction of another authority can vitiate decisions - Courts upheld the principle that statutory authority must exercise independent discretion - In this case, the revocation of the certificate was found influenced by external pressures, rendering it void. (Paras 41, 62)

Facts of the case:
The petitioner challenged the cancellation of the Essentiality Certificate needed to run a medical college, claiming compliance with standards and entitled to legal remedy given the evident improvements in infrastructure and faculty. (Paras 1-2)

Findings of Court:
The court found that the State's cancellation of the Essentiality Certificate was not independently justified and was made under undue influence from the NMC. (Paras 64)

Issues: Whether the cancellation complied with legal standards set by earlier judgments regarding Essentiality Certificates and the process due when revoking regulatory approvals. (Paras 18, 22)

Ratio Decidendi: The court ruled that the Essentiality Certificate could not be withdrawn unless fraud was proven or loss of substratum was clearly established, and cautioned against decisions made under external influence. (Paras 60, 62)

Result: Writ Petition allowed; cancellation of Essentiality Certificate quashed.

Table of Content
1. licensure and operation of a medical college. (Para 1 , 6 , 15 , 18)
2. regulatory framework governing the establishment of medical colleges. (Para 2 , 4 , 9 , 19 , 25)
3. importance of compliance with medical regulations. (Para 3 , 24 , 60 , 61)
4. norms for maintaining educational standards. (Para 17 , 21 , 34)
5. state’s power to withdraw an essentiality certificate under specific conditions. (Para 38 , 43)

DHIRAJ SINGH THAKUR, CJ:

W.P. No.4484 of 2019 has been filed challenging the action of the Government in cancelling the Essentiality Certificate, which was issued on 30.09.2013, in favour of the petitioner for establishment of a medical college in the name and style of „RVS Institute of Medical Sciences‟ in Chittoor District, by its order, dated 27.03.2019.

W.P. No. 2212 of 2019 has been filed challenging the letter, dated 05.02.2019, issued by the Special Chief Secretary, wherein the petitioner was called upon to show cause as to why the Essentiality Certificate should not be cancelled.

W.P. No. 7619 of 2019 has been filed challenging the proceedings, dated 20.05.2019, issued by the Board of Governors (in supersession of MCI) treating the petitioner institution as a closed medical college and requesting further action, as arbitrary, illegal.

W.P. No. 6748 of 2019 has been filed challenging the letter, dated 08.05.2019, issued by the Medical Council of India (for short, “MCI”), rejecting the petitioners' request for annual inspection of their Medical College, as arbitrary and illegal.

W.P. No. 5949 of 2019 has been filed challenging the condition imposed in proceedings, dated 03.12.2018, issued by MCI, making withdrawal of the Essentiality Certificate a prerequisite for adjusting students.

Aggrieved of the orders passed in appeal upholding the order of disapproval, dated 04.07.2024, recorded by the National Medical Commission (for short, “NMC”), writ petition bearing No. 22536 of 2024 has been filed.

2. The regulation of medical education in the country was earlier governed by the Indian Medical Council Act, 1956 (hereinafter referred to as “the Act”). However, with effect from 26.09.2018, the Board of Governors was appointed in supersession of the MCI. Subsequently, after coming into effect of the NMC Act, 2019 , on 25.09.2020, the NMC replaced the Board of Governors as the Apex regulatory body.

3. The Indian Medical Council Act, 1956 , inter alia deals with the issue of establishment of a new medical college. Regulations have been framed in terms of Section 10A r/w Section 33 of the Indian Medical Council Act, 1956 , and are called “the Establishment of Medical College Regulations, 1999”.

4. Section 10A of the Act inter alia envisages that no person shall establish a medical college except with the previous permission of the Central Government. Section 10A (2) of the Act envisages that for purposes of obtaining permission under Section 10A (1), a scheme shall have to be submitted to the Central Government and that the Central Government shall refer the scheme to the council for its recommendations. The scheme to be submitted to the Government has to be submitted in a prescribed form i.e., Form-I, as per regulations, which have been framed in accordance with the powers conferred under Section 10A r/w 33 of the Act.

According to the regulations, in particular, regulation No.3, an Essentiality Certificate in Form-2 is required reflecting no objection of the State Government/Union Territory for establishment of the proposed medical college at the proposed site.

For purposes of clarity, regulation 3 of 1999 is reproduced hereunder:

“3. The establishment of a medical college – No person shall establish a medical college except after obtaining prior permission from the Central Government by submitting a Scheme annexed with these regulations.”

5. It appears from the record that the Essentiality Certificate was issued in favour of the petitioner. The contents whereof read as under:

Sl. No.State Figures
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