Judicial Review in Compliance Case

Delve into the intricacies of a legal case centered around compliance issues and court orders. This summary focuses on the judicial review and analysis conducted by the court concerning regulatory requirements and adherence to directives. Discover how the court’s legal scrutiny sheds light on the nuances of ensuring compliance in complex legal scenarios.


  • Kannur Medical College (KMC) filed a writ petition seeking affiliation for conducting MBBS and post graduate courses for the academic year 2020-21.
  • KMC was denied affiliation by the Kerala University of Health Sciences (KUHS) in an order dated 29 April, 2020.
  • The Kerala High Court partially allowed KMC’s writ petition by staying the denial of affiliation, subject to conditions like furnishing a bank guarantee of Rs.10 crores and depositing the title deed of 25 acres of land as security.
  • ASC issued reopening notices which were challenged and quashed by the Kerala High Court in various cases.
  • Students who objected to refunds from KMC were allowed to present their claims to ASC for consideration.
  • The Union Government directed all States to conduct combined counseling for MBBS admissions for the academic year 2016-17.
  • A review petition filed by KMC was dismissed by the Division Bench of the High Court in January 2019 as the special leave petitions had been withdrawn.
  • Admissions to KMC were deferred by the High Court until pending complaints of excessive fee collection and refund requests were resolved.
  • Various judgments and orders by courts and authorities were mentioned in relation to compliance and adherence to regulations in KMC’s case.
  • Numerous irregularities and violations of admission processes were detected at Kannur Medical College (KMC) regarding MBBS admissions for the academic year 2016-17.
  • The Admission Supervisory Committee (ASC) issued repeated directions to KMC to rectify the illegal admissions and refund the fees collected from students.
  • Court orders, including one dated 4 October 2018, mandated the refund of fees and specified amounts to be returned to each of the 150 students admitted illegally.
  • An Ordinance by the State of Kerala to regularize admissions was declared ultra vires by the Court.
  • Various legal challenges and compliance issues arose between KMC, ASC, and the students regarding fees and admissions.
  • Specific orders were given by the Court for KMC to refund double the amount collected from students and to return original documents if held.
  • Financial penalties were also imposed, with specific amounts to be deposited by KMC to certain funds and associations.
  • Disputes over settlements, fees, and compliance persisted between the parties involved.
  • Various legal cases, petitions, and challenges were filed by KMC and students regarding admissions and compliance issues.
  • ASC directed KMC to produce demand drafts for disputed amounts and there were instances of non-compliance and adjournments by KMC.
  • Further legal actions were taken, including Writ Petitions by KMC for admission and affiliation permissions for subsequent academic years.

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  • ASC and appellants argue that students/guardians were forced to sign documents without knowing the contents.
  • Refers to a previous case where withdrawal of a complaint against a college may not have been voluntary due to the urgency of needing certificates and money for admission to another college.
  • Documents obtained under duress and coercion should not be considered valid ‘No Dues Certificates’.
  • Students/guardians were coerced to obtain money quickly for admission elsewhere.
  • College would not return original certificates without a discharge receipt.
  • KMC submitted that it has been penalized by not being allowed to admit students for certain academic years.
  • KMC made a payment of Rs. 39 crores to students/guardians.
  • The order dated 29 May, 2020 directing the furnishing of a bank guarantee and title documents is being challenged by KMC as it does not address the non-payment of double the amount owed to students as per previous court orders.
  • KMC admits owing Rs. 4,82,46,000/- to one batch of students.
  • Settlements have been reached with 134 guardians/students by KMC.
  • KMC faces financial burdens including payments to banks and the mortgaging of college property valued at Rs. 136 crores.
  • The College has not utilized its medical facilities fully due to restrictions on admitting students.
  • KMC is willing to secure payment of ordered amounts through bank guarantees or other means.
  • KMC stresses its compliance with regulatory and statutory requirements as a medical college.
  • The College argues that further restrictions on admitting students could lead to bankruptcy.
  • KMC offered to deposit Rs. 15.71 crores towards double the amount of fee paid by students, primarily paying double the tuition fee deposited at admission.

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  • The court emphasized the importance of ensuring that payments are actually made to students by remitting the amounts to their bank accounts.
  • A compliance report including bank statements and account numbers of students must be filed before the Court and ASC.
  • The 92 students were not made parties to the writ petition by KMC, and their stance on receipts or No Dues Certificates was not considered.
  • KMC has not filed any appeal to challenge the orders regarding payment to students.
  • An amount of Rs.15,72,89,020/- must be paid to students/guardians for their refunds.
  • ASC to consider the evidence and make decisions on individual cases of students.
  • Failure to comply would result in withdrawal of affiliation.
  • Guardians/students can provide relevant material to ASC for consideration.
  • Various orders directing payment and compliance by KMC were issued by the Court.
  • Interest accrued on deposits could be used for payments to students.
  • ASC entitled to open a bank account and handle deposits with instructions from authorized officers.
  • Enquiries to be made regarding the actual amounts paid by students and refunds to be based on evidence.
  • KMC to deposit Rs.25 crores with ASC and pay Rs.15,72,89,020/- to proceed with admissions and affiliation.
  • Admissions Committee to act swiftly on decisions regarding admissions and refunds.
  • Disputes over payments and refunds were to be examined by ASC.
  • High Court order quashing notices to 92 students was considered as disregarding previous orders.
  • Factual inquiries into payment amounts and refunds were to be conducted by ASC.
  • Benefit of Court orders granted to students seeking refunds.
  • Petitioners encouraged to pursue claims before the Committee for fair resolution.
  • Failure to disclose full facts by parties was lamented by the Court.

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  • The impugend orders are set aside and the appeals are allowed.
  • Pending applications are disposed of in the mentioned terms.
  • KMC must deposit Rs.15,72,89,020/- and Rs.25 crores for further affiliation decisions.
  • ASC and KUHS will decide on affiliation only after settling claims pertaining to students from 2016-17.
  • High Court can grant stay or direct refund/payment if necessary.
  • Parties can seek directions, clarification, or modification.
  • Petitioner can pursue her claim before the Committee as per previous orders.
  • KUHS rejection of KMC’s affiliation for 2020-21 is justified.
  • KMC to deposit specified amounts with ASC for disbursement to guardians/students.
  • ASC to complete the disbursement within nine months and refund excess amount to KMC afterwards.


Case Number: C.A. No.-000596-000596 / 2021

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