CHINTPURNI MEDICAL COLLEGE AND HOSPITAL & ANR.V. STATE OF PUNJAB & ORS. versus STATE OF PUNJAB & ORS.

Citation: [2018] 5 S.C.R. 147 · Decided: 03-07-2018 · Supreme Court of India · Bench: S.A. BOBDE · Disposal: Case Allowed

Cited by 3 judgment(s) · cites 3 · see the full citation network in Lexace

Judgment (excerpt)

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CHINTPURNI MEDICAL COLLEGE AND HOSPITAL & ANR.
v.
STATE OF PUNJAB & ORS.
(Writ Petition (Civil) No. 89 OF 2018)
JULY 03, 2018
[S. A. BOBDE AND L. NAGESWARA RAO, JJ.]
Medical Council Act, 1956 – ss. 10A, 19 – Essentiality
Certificate – Grant of, by State Government to the medical college
– Power of State Government to withdraw the Certificate once
granted – Permissibility of – Held: It is not permissible to allow any
authority including a State Government which merely issues an
Essentiality Certificate, to exercise any power of withdrawing the
Certificate which could have the effect of terminating the existence
of a Medical College permitted to be established by the Central
Government – State Government may not do either directly or
indirectly – Further, it cannot be said that under no circumstances
can the Essentiality Certificate be withdrawn – State Government
would be entitled to withdraw such certificate where it is obtained
by playing fraud on it or any circumstances where the very
substratum on which the Essentiality Certificate was granted
disappears or any other reason of like nature – On facts, the
condition of doctor-panel ratio proposed to be achieved, is ultra-
vires the provisions of the Act and Regulations – Thus, the order
issued by the State, withdrawing the Essentiality Certificate is
quashed and set aside.
Allowing the writ petition, the Court
HELD: 1.1 The Essentiality Certificate certifies that it is
essential having regard to specified factors that the opening of
the proposed college is essential in the State, in public interest.
What is significant to note is that the law requires that an applicant
must possess an Essentiality Certificate from the State
Government mentioning therein that it is essential to have a
Medical College as proposed by him. The purpose is interalia to
prevent the establishment of a college where none is required or
to prevent unhealthy competition between too many Medical
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SUPREME COURT REPORTS
[2018] 5 S.C.R.
Colleges. Thus, the Legislative scheme for permission to
establish a Medical College prescribes, as a qualifying criterion,
that the applicant must have an Essentiality Certificate issued by
the State Government. The State Government certifies the
justification for establishing a proposed Medical College as a part
of the Legislative scheme under the Act. It does not do so under
any other law including a State enactment. The only purpose of
the Essentiality Certificate is to enable the Central Government
acting under Section 10A of the Medical Council Act, 1956 to
take an informed decision for permitting the opening or
establishment of a new Medical College. Once the college is
established, its functioning and performance and even the de-
recognition of its courses is controlled only by the provisions of
the IMC Act. [Para 14, 15][160-H; 161-A-D]
1.2 It would be impermissible to allow any authority
including a State Government which merely issues an Essentiality
Certificate, to exercise any power which could have the effect of
terminating the existence of a Medical College permitted to be
established by the Central Government. The State Government
may not do either directly or indirectly. Moreover, the purpose
of the Essentiality Certificate is limited to certifying to the Central
Government that it is essential to establish a Medical College. It
does not go beyond this. In other words, once the State
Government has certified that the establishment of a Medical
College is justified, it cannot at a later stage say that there was
no justification for the establishment of the College. Surely, a
person who establishes a Medical College upon an assurance of
a State Government that such establishment is justified cannot
be told at a later stage that there was no justification for allowing
him to do so. Moreover, it appears that the power to issue an
Essentiality Certificate is a power that must be treated as
exhausted once it is exercised, except of course in cases of fraud.
The rules of equity and fairness and promissory estoppel do not
permit this Court to take a contrary view. [Para 16][161-F-H;
162-A-B]
1.3 The reasons given by the State for rescinding the
Essentiality Certificate are not relevant or germane to the
establishment of a Medical College. They refer to the deficiencies
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in the functioning of a Medical College for a particular period.
Deficiencies by their nature are curable a

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