National Medical Commission & Anr. vs Annasaheb Chudaman Patil Memorial Medical College & Ors.
Background
A private medical college in Maharashtra with 100 MBBS seats applied to increase its intake to 150. During the Covid-19 pandemic its recognition was renewed on the strength of its own affidavit that there were no deficiencies, and in November 2021 it was granted permission for 150 seats, subject to withdrawal if a surprise inspection found standards not being met. After complaints, a surprise inspection in January 2022 found gross deficiencies: fake in-patients who "looked healthy" and vanished by evening, nurses' charts with vitals and treatment pre-recorded two days in advance, patient contact numbers like "1111111111", and a homeopathy graduate on duty in the surgical ward. The NMC withdrew the permission for extra seats and stopped admissions for 2021-22 altogether. The Bombay High Court (Aurangabad Bench) upheld the withdrawal of the 50 extra seats but allowed the college to admit 100 students. The Supreme Court stayed that direction on 8 April 2022 and allowed a fresh inspection, yet the college went ahead and admitted 100 students for 2021-22 anyway, without seeking any modification of the stay.
Decision Breakdown
The Court held that the college had "plainly acted in defiance" of the Supreme Court's stay and had attempted "to overreach the process of the Court"; a later favourable inspection did not entitle it to take the law for granted. Balancing the sanctity of the judicial process against the harm to innocent students who had been admitted through the State's central counselling, the Court invoked Article 142 to let the 100 admissions stand, but only on condition that the college deposit a penalty of Rs 2.5 crores within four weeks with AIIMS, New Delhi, to be used for poor and needy patients. The Court expressly directed that this penalty must not be recovered from the students in any way, now or later. The appeals were disposed of on these terms.
Lesson Learnt
An institution that admits students while a court order forbids it does so at its own peril. The Supreme Court may protect the innocent students, but it will impose a heavy financial penalty on the institution and forbid passing that cost on to them. A stay order must be obeyed until the court itself modifies it, even if circumstances later change in your favour.