VidhiSangh

Supreme Court of India · 14/05/2026

SOUMYA RANJAN PANDA & ORS. versus SUBHALAXMI DASH & ORS.

[2026] 6 S.C.R. 241 · 2026 INSC 488

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Summary

After MBBS students of a derecognised private medical college (SRMCH) were relocated under Supreme Court orders to three private colleges and completed their course paying only Government-rate fees, the Court apportioned the resulting fee shortfall. It placed the primary liability on the defaulting college's trust and released the trust's bank guarantee with the MCI/NMC and its deposit in Court to the transferee colleges. It held the students could not keep the windfall of interim Government-rate fees and allowed the colleges to recover the balance, at SRMCH rates, through the NMC.

Issues

  1. Whether students relocated from a derecognised private medical college to private colleges under interim orders are liable to pay fees at Government rates or at private-college rates.
  2. Whether the transferred students should be classified against Government or management quota in the transferee colleges.
  3. How the fee shortfall of the transferee colleges is to be apportioned between the students and the trust running the defaulting college.
  4. Whether the bank guarantee furnished by the trust with the MCI/NMC could be applied towards the transferee colleges' dues.

Held

Result

Interlocutory applications of the transferee colleges disposed of and appeals closed. MCI/NMC to release the trust's bank guarantee amount (about Rs.10 crores) equally to the three transferee colleges within three months; the trust's deposit in the Registry with interest to be divided equally and disbursed, colleges to furnish bank details within two weeks. Colleges may make representations to the MCI/NMC to recover student-wise shortfall at SRMCH rates; students who comply are entitled forthwith to their course-completion documents.

Judgment PDF: Supreme Court of India, [2026] 6 S.C.R. 241.