Supreme Court Resolves Financial Liabilities in Medical Student Relocation Case, Apex Court Equitably Distributes Fee Burden Among Students, Defaulting College, and Transferee Institutions
In a significant ruling, the Supreme Court of India has addressed the financial liabilities arising from the relocation of medical students due to infrastructure deficiencies at Sardar Rajas Medical College (SRMCH), Odisha. The decision, delivered by Justices Vikram Nath and Sandeep Mehta, equitably apportions the fee burdens among the affected students, the defaulting institution (Selvam Trust), and the transferee colleges.
The case involved the relocation of students from SRMCH to private medical colleges due to the non-renewal of recognition by the Medical Council of India (now the National Medical Commission). The court intervened to ensure that the students' academic progress was preserved, preventing the loss of an academic year.
Under the Supreme Court's directive, a bank guarantee of Rs. 10 crores furnished by Selvam Trust and Rs. 2 crores deposited with the court, along with accrued interest, will be disbursed to the transferee colleges to cover the shortfall in fees. The colleges affected by the relocation include Kalinga Institute of Medical Sciences (KIMS), Bhubaneswar, Institute of Medical Sciences & SUM Hospital, Bhubaneswar, and Hi-Tech Medical College & Hospital, Bhubaneswar.
The court acknowledged that students had initially paid subsidized Government-rate fees and completed their medical courses. However, as per the judgment, transferee colleges are permitted to recover outstanding dues in line with the fee structure applicable at SRMCH. This recovery will be facilitated through representations to the National Medical Commission.
In a move to ensure compliance, the court has mandated that students fulfilling their fee obligations as per the judgment will receive their academic and course-completion documents without delay.
The ruling effectively balances the interests of the students, ensuring they are not unjustly enriched by the subsidized fees, while also safeguarding the financial interests of the transferee colleges and addressing the defaults by SRMCH.
Bottom Line:
Relocation of medical students due to deficiencies in infrastructure and non-renewal of recognition of their initial institution - Financial liabilities to be equitably apportioned among students, defaulting institution, and transferee colleges.
Soumya Ranjan Panda and v. Subhalaxmi Dash, (SC) : Law Finder Doc id # 2898676
