Facts: Ajeet Seeds Private Limited, a private limited company, applied to establish a new medical college and hospital with 150 MBBS seats for the academic year 2025-26. The National Medical Commission (NMC) rejected the application because the company was not registered under Section 8 of the Companies Act, 2013, as required by Regulation 6 of the Establishment of Medical Institutions, Assessment and Rating Regulations, 2023. The company argued that this regulation was ultra vires the NMC Act and violated Articles 14 and 19 of the Constitution of India, as it unfairly restricted eligibility to Section 8 companies. The petitioners had already invested a substantial amount (Rs. 355 Crores) and obtained necessary state-level approvals before the new regulation came into effect.
Procedural Posture: The petitioner, Ajeet Seeds Private Limited, filed a writ petition in the High Court of Judicature at Bombay, Bench at Aurangabad, challenging the validity of Regulation 6 of the Establishment of Medical Institutions, Assessment and Rating Regulations, 2023, and seeking a writ of mandamus to direct the NMC to process their application without relying on the said regulation. The petition also challenged the show cause notice and rejection orders issued by the NMC. The petitioner had already exhausted the appellate remedies before filing the writ petition.
Issue: Is Regulation 6(g) of the Establishment of Medical Institutions, Assessment and Rating Regulations, 2023, which restricts the eligibility to establish a new medical college to Section 8 companies, ultra vires Section 28 of the National Medical Commission Act, 2019, and violative of Articles 14 and 19 of the Constitution of India? Specifically, does the regulation improperly narrow the definition of "person" as provided in Section 28 of the NMC Act?
Holding: No, Regulation 6(g) is not ultra vires the NMC Act or violative of the Constitution. The writ petition is dismissed.
Reasoning: The Court held that the NMC, as an expert body, has the power to frame regulations to maintain high standards in medical education. Restricting eligibility to Section 8 companies is intended to ensure that medical colleges are not driven by commercial or profit-making objectives and remain aligned with the broader public interest. The Court reasoned that allowing private companies primarily focused on profit-making to establish medical colleges could frustrate the object of imparting valuable knowledge and lead to the monopolization of medical education by wealthy individuals. The Court emphasized that delegated legislation should be interpreted in harmony with the parent statute and that the NMC's regulation was a valid exercise of its power to fill in the details of the broad policy outlined in the NMC Act. The court also noted that the term "person" in Section 28 of the NMC Act, while broad, does not preclude the NMC from imposing reasonable restrictions to achieve the objectives of the Act.