Soumya Ranjan Panda v. Subhalaxmi Dash
(2026) INSC 488
Key Issue / Question of Law
Whether the students transferred from a de-recognised private medical college (SRMCH) to other private medical colleges pursuant to interim orders of the Supreme Court are liable to pay fees at Government rates or at the rates applicable to private medical colleges, and how the differential fee liability should be apportioned between the students, the defaulting Trust, and the State/MCI.
Ratio Decidendi
The students admitted to a private medical college had consciously contracted to pay higher fees applicable to private institutions and cannot claim a windfall or bonanza by paying subsidised Government rates merely because this Court issued interim directions to protect their academic careers. The defaulting institution (SRMCH/Selvam Trust), which failed to maintain regulatory standards and caused the students to be displaced, must bear the primary financial liability. The principle of 'commodum ex injuria sua nemo habere debet' (no one should derive a benefit from their own wrong) applies. The amount of Rs.10 crores furnished by way of bank guarantee with the MCI/NMC and the Rs.2 crores deposited with the Supreme Court Registry shall be disbursed to the transferee colleges. The remaining shortfall may be recovered by the transferee colleges from the passed-out students through representations to the NMC, applying the fee structure of the original institution (SRMCH), not the higher rates of the transferee colleges.
Holding / Decision
The Supreme Court directed that the amount of Rs.10 crores covered by the bank guarantee furnished by the Selvam Trust with the MCI/NMC, along with Rs.2 crores deposited with the Registry (now Rs.3.58 crores with interest), shall be disbursed equally to the three transferee colleges (KIMS, IMS, Hi-Tech Medical College). The Court held that students cannot be permitted unjust enrichment by paying only Government rates; they are liable to pay fees at the rates of SRMCH (the original institution). Transferee colleges may make representations to the NMC for recovery of remaining dues from the passed-out students. Students who comply with the fee liability shall receive their course-completion certificates. The Court closed the appeals and disposed of all interlocutory applications.
Background & Facts
Two batches of MBBS students (academic sessions 2013-2014 and 2014-2015) were admitted to Sardar Rajas Medical College, Hospital and Research Centre (SRMCH), Jaring, Kalahandi, Odisha, run by the Selvam Educational and Charitable Trust. During inspections, the Medical Council of India (MCI, now NMC) found serious deficiencies in infrastructure, teaching faculty, and other regulatory requirements. Consequently, renewal of recognition for SRMCH was denied. The college's writ petition challenging this denial was dismissed in limine by the Supreme Court on 8 August 2014. The students' academic future was placed in grave jeopardy. The High Court of Orissa directed relocation of students to other recognized colleges. Appeals were filed before the Supreme Court. By interim orders dated 18 September 2014 and 24 September 2014 in Hind Charitable Trust v. Union of India, the Supreme Court permitted admissions to private colleges with recognition issues subject to conditions, including that fees shall be charged at Government rates. Students were transferred to three private medical colleges. The transferee colleges filed applications seeking reimbursement of fees. The Selvam Trust had deposited Rs.2 crores with the Supreme Court Registry and furnished bank guarantees of Rs.10 crores with the MCI/NMC.
Statutes Involved
- Article 142, Constitution of India — Empowers the Supreme Court to pass any decree or order necessary for doing complete justice in any cause or matter pending before it
- Medical Council of India Act, 1956 (repealed) — Governed recognition and de-recognition of medical colleges; functions now vest in the National Medical Commission (NMC)
- National Medical Commission Act, 2019 — Provides for regulation of medical education and establishment of the National Medical Commission
- Essential Maintenance of Standards of Medical Education Regulations, 2010 (MCI) — Prescribed the standards for infrastructure, faculty, and facilities required for recognition of medical colleges
Full Analysis
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Key Conditional Rule / Important Caveat
This judgment applies ONLY where (a) students are transferred from a de-recognised private professional college to other private colleges pursuant to interim orders of the Supreme Court, (b) the interim orders permitted payment of fees at Government rates as an emergent measure, and (c) the defaulting institution had furnished bank guarantees or deposited amounts with the Court or regulatory body. The students are NOT entitled to pay Government rates permanently. They are liable to pay fees at the rate of the original institution (not the higher rate of the transferee institution). The defaulting institution's bank guarantees can be released to compensate the transferee colleges. This judgment does NOT apply where (a) the students were originally admitted to Government colleges, (b) the transferee colleges had vacant Government quota seats, or (c) the defaulting institution has not furnished any security that can be attached.
Cases Cited
- Hind Charitable Trust v. Union of India, W.P.(Civil) No. 469 of 2014 (order dated 18 September 2014) — The Supreme Court, exercising power under Article 142, directed that students admitted to private medical colleges with recognition issues shall pay fees at Government rates and that admissions shall be through a common State list without distinction between Government and management quota.
- Sardar Rajas Medical College v. Union of India, W.P.(C) No. 681 of 2014 (order dated 8 August 2014) — The Supreme Court dismissed in limine the writ petition challenging denial of renewal of recognition to SRMCH, affirming the findings of deficiencies.
Courtroom Arguments
For Petitioner
Students Were Not at Fault, Should Not Pay — (2026) INSC 488
The students were admitted through a valid State counselling process to SRMCH. They are innocent victims of the Trust's regulatory violations.
For Respondent
Primary Liability on Defaulting Trust, Not Students — (2026) INSC 488
The Selvam Trust (SRMCH) failed to maintain regulatory standards, collected higher fees, and caused the students to be displaced.
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Disclaimer: This summary is prepared by Agarawal Associates for informational purposes only. It does not constitute legal advice. For legal matters, consult a qualified advocate. © 2026 Agarawal Associates — apexdigest.in