The Supreme Court has ruled that private medical colleges which accommodated students transferred from Sardar Rajas Medical College and Hospital (SRMCH), Odisha, must be compensated for the education provided after the original institution lost recognition due to serious deficiencies.
A Bench of Justice Vikram Nath and Justice Sandeep Mehta directed that nearly ₹10 crore secured through bank guarantees and ₹2 crore deposited before the Court, along with accrued interest.
The Court also held that students who completed MBBS courses after being shifted cannot indefinitely continue to enjoy heavily subsidised government-rate fees when they had originally enrolled in a private medical college with a much higher fee structure.
Background of the Case
The dispute arose after SRMCH in Odisha failed to secure renewal of recognition from the Medical Council of India (now National Medical Commission) due to major shortcomings in infrastructure, faculty availability, and regulatory compliance.
The affected students belonged to the 2013-14 and 2014-15 MBBS batches. As uncertainty grew over their academic future, the Orissa High Court initially directed their relocation to recognised medical colleges within the State.
Subsequently, the Supreme Court intervened and supervised the relocation process through state counselling to ensure students did not lose academic years. Eventually, 122 students were distributed among Kalinga Institute of Medical Sciences (KIMS), IMS & SUM Hospital, and Hi-Tech Medical College in Bhubaneswar.
What Happened During the Hearing
The transferee colleges told the Supreme Court that they accommodated the relocated students under court orders and continued providing education despite receiving only limited government-rate fees. They also agreed to accept reimbursement based on SRMCH’s fee structure instead of their own higher fees.
The students argued they were not at fault and had already completed their courses after years of uncertainty, and therefore should not face additional financial burden.
The Selvam Trust contended that the findings regarding deficiencies at SRMCH were still under challenge and that liability should not be imposed without proper adjudication.
Court’s Key Observation
The Court held that students could not permanently retain the benefit of subsidised government-rate fees when they had originally enrolled in a private medical college.
The Bench stated:
“Neither the students can be given undue advantage or bonanza nor can the defaulting institution... be permitted to take benefit of its own follies.”
The Court further invoked the legal maxim Commodum ex injuria sua nemo habere debet, meaning no person should benefit from their own wrongdoing.
It noted that the deficiencies found in SRMCH had already been affirmed after dismissal of the institution’s earlier challenge before the Supreme Court.
Court’s Decision
The Supreme Court directed that the ₹10 crore bank guarantee furnished by the Selvam Trust with the MCI/NMC, along with ₹2 crore deposited before the Court and accrued interest, be equally distributed among the three transferee colleges within three months.
The Bench also permitted the colleges to approach the National Medical Commission for recovery of any remaining fee shortfall from students based on the fee structure applicable at SRMCH.
At the same time, the Court clarified that students who clear their determined fee liabilities would be entitled to receive all pending academic certificates and course completion documents without delay.
Case Details Section
Case Title: Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.
Case Number: Civil Appeal arising out of SLP (Civil) Nos. 35075-35076 of 2015
Court: Supreme Court of India
Judge: Justice Vikram Nath and Justice Sandeep Mehta
Date: May 14, 2026
