Subharti Medical College v. Union of India
Background
Subharti Medical College applied to increase its MBBS intake from 100 to 150 seats. A Medical Council of India (MCI) inspection found deficiencies, notably low bed occupancy (55.27%), leading the Central Government to debar the college from admitting the extra seats for two years and to encash its Rs. 2 crore bank guarantee. After the Supreme Court earlier found that order unreasoned and sent it back, the Government passed a fresh order relying on a Hearing Committee that still could not conclusively verify the bed-occupancy issue.
Decision Breakdown
The Supreme Court held that mechanically reiterating the debarment order, despite the Hearing Committee's own admission that bed occupancy needed physical verification, could not survive judicial scrutiny. Rather than simply quashing the order, the Court directed MCI to send a fresh inspection team to the college within three months, allow the college to report on and remove any deficiencies found, and have the Competent Authority take a final decision within one month of MCI's report. It ordered that the proposal for 2017-18 be treated as made for the 2018-19 academic session if ultimately approved, and that the bank guarantee be kept alive rather than encashed pending that fresh decision. The writ petition was disposed of in these terms with no order as to costs.
Lesson Learnt
Regulatory bodies cannot debar or penalize an institution based on an inconclusive inspection finding; where the underlying factual dispute (such as bed occupancy) was never actually verified, courts can require a fresh, fair inspection and decision rather than letting a flawed administrative order stand.