[2013] 14 S.C.R. 105

SWAMY DEVI DAYAL HOSPITAL. & DENTAL COLLEGE A v.

THE UNION OF INDIA & ORS. (Special Leave Petition (Civil) No. 25698 of 2013)

AUGUST 27, 2013

[K.S.RADHAKRISHNAN AND A.K.SIKRI, JJ.] B

Education - Medical education - Dental Council of India Act, 1948 - s.10A - MOS (Master of Dental Surgery) - Specialist Courses - Permission for - Renewal of permission C

- Applicability of s.10A - Held: No doubt, heading of s. 10A

suggests that it deals with "permission for establishment of new dental college, new courses of study, etc.''. however, it applies to cases of renewal of permission as well - s. 1 OA contemplates grant of opportunity of being heard at two stages D

- First stage is at the level of Dental Council of India (DC/) after the scheme is submitted to DC/ u/s.10A(2) - Once it is found by the DC/ that all the parameters for granting permission are met, it recommends the grant of approval of the scheme to the Central Government - Jn case scheme is E found to be deficient, s.10A(3)(a) casts an obligation on the part of the DC/ to give a reasonable opportunity for making a written representation and also to rectify the deficiencies, if any, specified by the DC/ - Second stage of adherence to the principles of natural justice is provided at the level of Central F Government at the time when it has to take final decision, after the receipt of the recommendation sent by the DC/ - This requirement of hearing is stipulated in proviso to s.10A(4), in the event the Central Government is proposing to disapprove the scheme - Expression "opportunity of being heard" G occurring in this proviso would mean that the material that goes against the applicant and is to be taken into consideration, is, to be supplied to the applicant within an opportunity to make representation - For this purpose either

105 H

A the report of the DC/ itself can be supplied or at/east the deficiencies pointed out in the report have to be communicated by the Central Government to the applicant with an opportunity to furnish its comments thereupon - At that stage while giving its reply, if the applicant claims personal B hearing, such a personal heaing should also be accorded - Natural Justice - Opportunity of hearing.

Education - Medical education - Dental Council of India Act, 1948 - s.10A - MOS (Master of Dental Surgery) - C Specialist Courses - Permission for - Renewal of permission

- Academic session 2013-14 - Permission declined to Petitioner-college for renewal of the second year MOS course in two specialties - Justification - Held: Since no opportunity of being heard in terms of the requirement of proviso to subsection (4) of s.10A of the Act was afforded to the petitioner, D the decision of the Central Government rejecting the request of renewal warrants to be set aside on this ground alone ,- However, notwithstanding the position in law which goes In favour of the petitioner, in view of the other circumstances in the case, no relief can be given to the petitioner as claimed E by it insofar academic session 2013-2014 is concerned - It

is not possible to put the clock back - However, the case can be considered for renewal of permission for the next academic session - For this, hearing be given to the petitioner to demonstrate that they have overcome the deficiencies and F they no longer exist - If the Central Government is satisfied on these aspects, it may grant renewal of permission for the next academic session 2014-15 - In case renewal of permission is rejected, the petitioner will have to undergo the process of seeking fresh permission for next academic G session i.e. 2014-15 by submitting fresh scheme/proposal to the DC/ for that year, as per the procedure prescribed in the Act & Regulations.

The petitioner, a Dental College recognized and H affiliated to Respondent No.4 University, was desirous of

SWAMY DEVI DAYAL HOSPITAL & DENTAL 107 COLLEGE v. UNION OF INDIA

starting the MOS (Master of Dental Surgery) Course.

A Respondent No.3-State of Haryana granted NOC to the petitioner for starting MOS Course in 9 specialties from the session 2010-11. Thereafter, Respondent No.4 -

University granted provisional affiliation to the petitionercollege for 6 out of 9 specialties for academic session 8 2011-12. Respondent No.1, i.e. the Central Government also, on the recommendations of Respondent No.2/ Dental Council of India ('DCI'), issued Letter of Intent to the petitioner for the aforesaid 6 specialties and later on granted permission to the petitioner-college to start MOS C Courses in 6 specialties with 3 seats each for the session 2011-12.

Though for the session 2011-12, the petitioner was permitted to start courses in six specialties out of 9 courses mooted by it, for the academic session 2012-13, D Respondent No.4 University granted provisional affiliation to the petitioner for the other three specialties namely, (a) Oral Medicines & Radiology';· {b) Oral and Maxillofacial Surgery; and also (c) Orthodontics and Dentofacial Orthopedics.

In respect of two specialties -

(i) Oral and Maxillofacial Surgery and (ii) Orthodontics and Dentofacial Orthopaedics, Respondent No.4 University gave affiliation and students were admitted by the petitioner-College in these disciplines as well for the academic session 2012-13. However, for the academic session 2013-14, permission was not extended for these two specialties. Thereafter, decision was taken by the Central Government vide letter dated 30th March 2013, addressed to the petitioner, whereby permission was G declined for renewal of the second year MOS course in the said two specialties.

Aggrieved, the petitioner-college filed Writ Petition

A contending that it did not suffer from any deficiencies and the order of the Central Government decliiling the permission of renewal was bad in law; and also that before taking the impugned decision Respondent No.1 had not granted personal hearing to it thereby violating

8 the mandatory requirement of the provisions of Section

10A (4) of the Dental Council of India, 1948.

In terms of sub-section (4) of Section 10A of the Act, the Central Government, before taking a decision on the

rece1mmendation of the DCI is required to give a C reasonable opportunity of being heard in case it proposes to disapprove the scheme submitted by an educ:ational institution. It was, however, argued before the High Court that such a hearing is required only when the question of permission for establishment of new D dental college or new course or studies comes up for

com;; ideration and Section 10A does not deal with the cases of renewal of permission. The High Court accepted this contention of the Government and dismissed the writ

E petitiion, and therefore the present SLP.

Disposing of the SLP, the Court

HELD:1.1. No doubt, heading of Section _10A of the Dental Council of India 1948 suggests that it deals with "permission for establishment of new dental college, new F counses of study, etc." However, holistic reading of the provisions of this section prescribing the scheme containing the procedure for establishment of new dental college and new courses of study etc. would clearly deme1nstrate that this provision applies even to the cases G of renewal of such permission as well. [Para 16) [121-F-H]

1.2. The cases of renewal cannot be excluded from the provisions of Section 1 OA of tlie Act. When the petitioner-college applied for renewal of the permission, H the application was processed in accordance with the

SWAMY DEVI DAYAL HOSPITAL & DENTAL 109 COLLEGE v. UNION OF INDIA

procedure laid down in section 10A. As per this procedure, when a request is received in the form of a requisite scheme, as required in sub-section (2) of Section 10A of the Act, the same is to be processed in the manner provided under sub-section (3) thereof. Once it is found by the DCI that all the parameters for granting permission are met, it recommends the grant of approval of the scheme to the Central Government. In case the Scheme is found to be deficient, sub-section (3) (a) of Section 10A of the Act casts an obligation on the part of

the DCI to give a reasonable opportunity for making a c written representation and also to rectify the deficiencies, any, specified by the DCI. After the recommendation is sent by the DCI to the Central Government, Central Government is required to process the same in accordance with the procedure contained in sub-section D

(4) of Section 1 OA. It can either approve or disapprove the Scheme. However, in case the Central Government is proposing to disapprove the Scheme, a final decision in this behalf can be taken only after giving the concerned person, authority or institution, a reasonable opportunity of being heard. This is the mandate of the proviso to Section 10A (4) of the Act. [Para 18) [122-E-H; 123-A-B]

1.3. The procedure prescribed in Section 1 OA contains the requirement of following the principle of natural justice at two stages. In the first place, by the DCI F when it finds deficiencies while examining the school in the second stage at the level of the Central Government before it passes away adverse orders, as it is the final administrative authority vested with powers to pass such an order. The law, thus specifically requires that at the G stage of a decision by the Central Government, again an oppof"{unity of being heard is to be provided. The proviso to Section 1 OA(4) of the Act, thus, acknowledges the need of and confers a very valuable right in favour of the petitioner. [Para 19) [122-C-D] H

A 2.1. In the present case, the petitioner had been acciorded permission in two specialties for the previous academic session. Non-renewal thereof in the present academic session has an adverse affect. It has visited the petitioner with civil and/ or evil consequences barring the B petitioner to enroll fresh students in this year. [Para 20)

[12~1-E-F]

2.2. It is trite that even in the absence of specific provision of giving hearing, the hearing is required in such cases unless specifically excluded by a statutory C provision. In such a situation the proviso to sub-section

(4) of Section 10 A has to be liberally construed to encompass the cases of renewal of permission as well. [Pa1ra 21) [126-C-D)

D 2.3. In fact, this case itself provides an excellent example of the importance of such a hearing and adhering to the principle of natural justice viz. audi alteram partem. According to the DCI, even after second inspection some deficiencies were found. On that basis E andl without confronting the petitioner any further, it sent its report to the Central Government recommending deniial of permission. However, as per the petitioner, there were no such deficiencies. There is thus importance, necessity and justification of granting an opportunity of F being heard by the Central Government as well, before taking final decision after the report of the DCI is sent to the Central Government which is against the applicant seeiking permission for renewal. In that event, if the opportunity of being heard is given, _the applicant would G get a chance to point out mistakes if any, factual or. otherwise, in the report of the DCI -and the Central Government would have version of the applicant also before it at the time of taking final decision on the report.

In the given case itself on such an opportunity of being heard given by the Central Government to the petitioner, H

SWAMY DEVI DAYAL HOSPITAL & DENTAL 111 COLLEGE v. UNION OF INDIA

the petitioner could have explained its stand before the A Central Government to enable the Central Government to take a view as to whether it should accept the report of

DCI or discard the same finding the explanation of the petitioner thereto, as satisfactory. [Para 22] [126-D-F; 127-

C-F] B

2.4. The High Court has not correctly interpreted the provisions of Section 1 OA of the Act by holding that the cases of renewal of permission would not be covered by this Section and therefore it was not necessary for the C Central Government to give opportunity of being heard to the petitioner before rejecting the renewal permission. [Para 25] [131-F-G]

Sahara India (Firm}, Lucknow vs. Commissioner of Income Tax, Central-1 and Anr. (2008) 14 SCC 151: 2008 D

(6) SCR 427; Managing Director, ECIL, Hyderabad, Etc. vs.

Karunakar, etc. (1993) 4 SCC 727: 1993 (2) Suppl. SCR 576; Priyadarshini Dental College & Hospital Vs. Union of India (2011) 4 SCC 623: 2011 (2) SCR 945 - referred to.

3.1. The legal position, touching upon the issue, on the interpretation of Section 10A (4) of the Act, is summed up as follows:- (a) Section 10A applies to the cases of renewal of permission as well; (b) It contemplates grant of opportunity of being heard at two stages. First stage would be at the level of DCI after the scheme is submitted

to DCI under sub-section (2) of Section 10A of the Act.

Once it is found by the DCI that all the parameters for granting permission are met, it recommends the grant of approval of the scheme to the Central Government. In case Scheme is found to be deficient, sub-section (3) (a) G of Section 10A of the Act casts an obligation on the part of the DCI to give a reasonable opportunity for making a written representation and also to rectify the deficiencies, if any, specified by the DCI. Second stage of adherence H

A to the principles of natural justice is provided at the level of Central Government at the time when it has to take final decision, after the receipt of the recommendation sent by the DCI. This requirement of hearing is stipulated in proviso to sub-section (4) of Section 10A, in the event the Central B Government is proposing to disapprove the scheme. (c) The expression "opportunity of being heard" occurring in this proviso would mean that the material that goes against the applicant and is to be taken into consideration, is to1 be supplied to the applicant within an opportunity to C make representation. For this purpose either the report of the DCI itself can be supplied or atleast the deficiencies pointed out in the report have to be communicated by the Central Government to the applicant with an opportunity to furnish its comments thereupon. At that stage while D giving its reply, if the applicant claims personal hearing, such a personal heaing should also be accorded. (Para

26] (131-G-H; 132-A-F]

3.2. As in the present case, since no such opp1ortunity of being heard the requirement of proviso to E sub-section (4) of Section 10A of the Act was afforded to the petitioner, the decision dated 30th March 2013 of the Central Government warrants to be set aside on this ground alone. [Para 27) (132-G]

4. Notwithstanding the position in law which goes in favo1ur of the petitioner, other circumstances appearing in this case desists from giving the relief to the petitioner that is claimed by it insofar academic session 2013-2014 is concerned. The effect of the aforesaid view would be G to set aside the orders dated 30th March 2013 passed by the Central Government rejecting the request of renewal.

However, from that it would not automatically follow that direction can be issued to the Central Government to accord such a permission. This Court could only remit the case to the Central Government to pass appropriate H

SWAMY DEVI DAYAL HOSPITAL & DENTAL 113 COLLEGE v. UNION OF INDIA

orders after giving hearing to the petitioner. However, it A is too late for the Central Government to re-examine the issue for the current academic session. Fact remains that as per the report of the DCI, there are deficiencies.

Deficiencies are not limited to the number of minor and major surgeries which are required to be performed by B a College for second renewal. The DCI reported that despite repeated inspections, the deficiencies have been found. Therefore, this Court cannot issue any mandamus straightaway and the petitioner is required to give its satisfactory explanation qua the aforesaid C deficiencies to the Central Government. However, the time has run out in so far current year is concerned. The session in respect of PG streams started on 15th July

2013. The necessary admissions have already been given to the students in different colleges. On remitting D the matter, some time will have to be given to the Central Government as well for taking a fresh decision. If that is also taken into account, by the time decision is taken, the

pr~:.ent ac<tdemic session would have progressed significantly. [Paras 28, 29) [132-H; 133-A-D; 134-E-G]

Priya Gupta vs. State of Chhattisgarh (2012) 7 SCC 433: 2012 (5) SCR 768 and Maa Vaishno Devi Mahi/a Mahavidya/aya vs. State of UP. (2013) 2 SCC 617: 2012

(13) SCR 810 - referred to.

5. Insofar as the academic session 2013-14 is concerned, it is not possible to put the clock back. Thus, while setting aside the impugned orders and remitting the case back to the Central Government for taking fresh decision, it is made clear that it would not relate to the G academic session 2013-14. However, the case can be considered for renewal of permission for the next academic session on the basis of existing material. For this, hearing should be given to the petitioner to demonstrate that they have overcome the deficiencies

A ancl they no longer exist. If the Central Government is satisfied on these aspects it may grant renewal permission for the next academic session 2014-15. In case the renewal of permission is rejected, the petitioner will have to undergo the process of seeking fresh B permission for next academic session i.e. 2014-15 by submitting fresh scheme/proposal to the DCI for that year, as per the procedure prescribed in the Act & Regulations. [Para 30] (135-B-D]

Case -Law Reference: c

2008 (6) SCR 427 referred to Para 20

1993 (2) Suppl. SCR 576 referred to Para 23

:2011 (2) SCR 945 referred to Para 24 D

2012 (5) SCR 768 referred to Para 29

:?012 (13) SCR 810 referred to Para 29

CIVIL APPELLATE JURISDICTION : SLP (Civil) No.

E 25698 of 2013.

From the Judgment & Order dated 01.08.2013 of the High Court of Punjab & Haryana at Chandigarh in C.W.P. No. 9357 of 20·13.

F P .S. Patwalia, Ashok K. Mahajan for the Petitioner.

Rakesh Kr. Khanna, ASG, V. Mohana, Sushma Suri, B.

Krishna Prasad, Gaurav Sharma for the Respondents.

The Judgment of the Court was delivered by

A.K.SIKRI, J. 1. The petitioner is a Dental College set up in the year 2004 for imparting education in the B.D.S. course (Bachelor of Dental Science). The petitioner is recognized and affiliated to Respondent No.4 University, viz. Pt. B.D. Sharma H University, Rohtak, Haryana.

2. The petitioner - college was desirous to start the MOS A Course (Master of Dental Surgery). For starting the said course the petitioner was required to complete the formalities i.e. (i)

Essentiality and No Objection Certificate from the State Government; (ii) Affiliation from Pt. B.D.Sharma University for Health Sciences, Rohtak and (iii) Recognition from the Dental B Council of India/Union of India.

3. Respondent No.3 - State of Haryana, vide letter dated 12.1.2010, granted 'No Objection Certificate' to the petitioner for starting MOS Course. The said 'No Objection Certificate' C was granted by the State Government for starting MOS Course in 9 specialties i.e. Oral Surgery, Orthodontics, Conservative Dentistry, Prosthodontics, Periodontics, Oral Diagnosis, Oral Pathology, Pedodontics, Periodontics, Oral Diagnosis, Oral Pathology, Pedodontics & Community Dentistry with 3 seats in each specialty from the session 2010-11.

4. Thereafter, Resp_ondent No.4 - University granted provisional affiliation to the petitioner-college for 6 out of 9 specialties for academic session 2011-12. Respondent No.1, i.e. the Central Government also, on the recommendations of E Respondent No.2/ Dental Council of India (hereinafter referred to 'DCI'), issued Letter of Intent to the petitioner for the aforesaid 6 specialties and later on granted permission to the petitioner-college to start MOS Courses in 6 specialties i.e. (i) Periodontology wih 3 seats (ii) Conservative Dentistry and F Endodontics with 3 seats (iii) Oral Pathology & Microbiology with 3 seats (iv) Public Health Dentistry with 3 sets (v) Prosthodontics and Preventive Dentistry with 3 seats (vi) Paedodontics and Preventive Dentistry with 3 seats for the session 2011-12. The said permission was extended for the G academic session 2012-13 and now the same has been extended for the academic session 2013-14.

5. In the present case, however, we are not concerned with the aforesaid six specialties. As pointed out above, thoughJor the session 2011-12, the petitioner was permitted to start H

A courses and six specialties out of 9 courses mooted by it, for the academic session 2012-13, Respondent No.4 University

granted provisionally affiliation to the petitioner for two more specialties namely (1) Oral Medicines & Radiology and (ii) Oral and Maxillofacial Surgery with an intake of 3 seats each. This B was followed by affiliation for the 9th specialty also, viz the Orthodontics and Dentofacial Orthopedics for the academic session 2012-13. In the instant petition, we are concerned with the two disciplines namely Oral and Maxillofacial Surgery as well as Orthodontics and Dentofacial Orthopaedics. c

6. As pointed out above, in respect of these two specialties, Respondent No.4 University had given the affiliation and students were admitted by the petitioner-College in these disciplines as well for the academic session 2012-13. However, for the academic session 2013-14, permission has not been D extended for these two specialties although for Oral Medicine and Radiology the requisite approval has been accorded. The events that followed for non-grant of permission in respect of these specialties for the academic session 2013-.14 are recapitulated below, briefly: E

7. For granting renewal of permission for the aforesaid 2 specialties i.e. Oral and Maxillofacial Surgery and Orthodontics and Dentofacial Orthopedics with three seats each for the academic session 2013-14, the DCI conducted the inspection F of the petitioner-college on 8.12.2012 and 9.12.2012. The petitioner was not supplied with the report of the Inspectors but vide letter dated 26.12.2012 and 27.12.2012, the petitioner was informed by the DCI about the deficiencies in these two specialties. The petitioner, vide letter dated 19.1.2013 and G 25.1.2013 submitted compliance report regarding the deficiencies in these two specialties.

8. Thereafter DCI conducted the verification inspection on 14.2.2013 and 18.2.2013. On the basis of this inspection, report dated 18.2.2013 was prepared by the DCI enlisting the H deficiencies which according to DCI remained uncured.

9. The DCI, accordingly, vide its letter dated 28.2.2013, A recommended to the Central Government not to extend the permission in these two specialties and not to allow the petitioner-college to admit the students in these two specialties for the academic session 2013-14. According to the petitioner, though it was not supplied the copy of the report dated B 18.2.2013 but could procure the same and on coming to know of the aforesaid negative recommendation dated 28.2.2013 of the DCI impressing upon Respondent No.1 not to accord permission in these two specialties for the current academic session, the petitioner made a representation to Respondent c No. 1 and along with the said report it also submitted a comparative statement of the deficiencies. The petitioner also requested for personal hearing. However, without affording any hearing, a decision was taken by the Central Government vide letter dated 30th March 2013, addressed to the petitioner, 0 whereby the permission was declined for renewal of the second year MOS course in the two specialties mentioned above.

10. Aggrieved by this decision, the petitioner preferred the Writ Petition in the High Court of Punjab and Haryana E questioning the validity thereof. Apart from contending that the petitioner-college did not suffer from any deficiencies and the order of the Central Government declining the permission of renewal was bad in law, the petitioner also submitted that before taking the impugned decision Respondent No.1 had not F granted personal hearing thereby violating the mandatory requirement of the provisions of Section lOA (4) of the Dental Council of India 1948 (hereinafter referred to as the Act).

11. Show cause notice was issued in the said writ and after G completion of the pleadings, the matter was heard by the learned Single Judge who has, vide the impugned judgment dated 1.8.2013 dismissed the Writ Petition filed by the petitioner finding no merit in both the contentions raised by the petitioner.

12. The present SLP challenges the said order of the learned Single Judge.

13. The first and foremost contention of Mr. Patwalia, the learned senior counsel appearing for the petitioner was that the

8 High Court had committed a grave error of law in taking a view that no personal hearing was required to be given by the Central Government before passing the order refusing to grant the renewal. Submission was that Section 10A(4) of the Act categorically provides for opportunity of being heard and in the C face of such a provision the decision of the High Court on this

asp1:ct was palpably wrong,

14. Section 10A of the Act reads as under:

"1 OA Permission for establishment of new dental college, o new courses of study, etc.

(1)

Notwithstanding anything contained in this Act or any other law for the time being in force

(a) no person shall establish an authority or institution for a course of study or training (including a post-graduate course of study or training) which would enable a student of such course or training to qualify himself for the grant of recognized dental qualification' or

(b) no authority or institution conducting a course of study or training (including a post-graduate course of study or training) for grant of recognized dental qualification shall

(i) open a new or higher course of study or training (including a post-graduate course of study or training) which would enable a student of such course or training to qualify himself for the award of any recognized dental qualification; or

(ii) increase its admission capacity in any A course of study or training (including a postgraduate course of study or training), except with the previous permission of the Central Government obtained in accordance with the provisions of this section.

Explanation 1. - for the purposes of this section, "person" includes any University or a trust but does not include the Central Government.

Explanation 2. - For the purposes of this Section, C "admission capacity", in relation to any course of study or training (includes a post-graduate course of study or training) in an authority or institution granting recognized dental qualification, means the maximum number of students that may be fixed by the Council from time to D time_for being admitted to such course or training.

(2) (a) Every person, authority or institution granting recognized dental qualification shall, for the purpose of obtaining permission under sub-section E (1), submit to the Central Government a scheme in accordance with the provision of clause (b) and the Central Government shall refer the said scheme to the Council for its recommendations.

(b) The scheme referred to in clause (a) shall be in F such form and contain such particulars and be preferred in such manner and be accompanied with such fee as may be prescribed.

(3) On receipt of a scheme by the Council under sub- G section (2), the Council may obtain such other particulars as may be considered n'ecessary by it from the person, authority or institution concerned, granting recognized dental qualification and thereafter, it may,

(a) if the scheme is defective and does not contain any necessary particulars, give a reasonable opportunity to the person, authority or institution concerned for making a written representation and it shall be open to such person, authority or institution to rectify the defects, if any, specified by the Council;

(b) consider the scheme, having regard to the factors referred to in sub-section (7), and submit the scheme together with its recommendations thereon to the Central Government,

(4) The Central Government may, after considering the scheme and the recommendations of the Council under sub-section (3) and after obtaining, where necessary, such other particulars as may be considered necessary by it from the person, authority or institution concerned, and having regard to the factors referred to in sub-section (7), either approve (with such conditions, if any, as it may consider necessary) or disapprove the scheme and any such approval shall be a permission under sub-section (1): Provided that no scheme shall be disapproved by the Central Government except after giving the person. authority or institution concerned granting recognized dental qualification a reasonable opportunity of being heard."

15. A bare reading of sub-section (4) makes it abundantly clear that even the Central Government, before taking a decision on the recommendation of the DCI is required to give a reasonable opportunity of being heard in case it proposes G to disapprove the scheme submitted by an educational institution. It was, however, argued before the High Court that such a hearing is required only when the question of permission for establishment of new dental college or new course or studies comes up for consideration and Section 1 OA does not H deal with the cases of renewal of permission. The High Court

has accepted this contention of the Government. This becomes A apparent from the following discussion contained in the impugned judgment of the High Court:

"Thus, in my considered opinion, the proviso of section 10(A)(4) of the Act cannot be read in the case of 8 renewal of permission as it deals with a specific situation.

Had it been the intention of the Legislature to provide an opportunity of hearing in the case of renewal of permission to be given by the Government of Indian on the recommendation of the DCI, it would have been a part of C the Act itself but here is a case in which the petition had admittedly been given an opportunity for rectification of their errors because after first inspection of the DCI, the deficiencies noted were communicated to the petitioner, who allegedly removed the deficiencies and submitted the D compliance report and in order to verify the compliance, another inspection team was sent, but still shortcomings/ deficienci'es were found which cannot be even condoned as it goes against the regulations.

Hence, in the absence of any statutory provision with regard E to an opportunity of hearing by the Government of India while with negative recommendations of DCI in the case of renewal of permission, the impugned order dated 30.3.2013 cannot be held to be illegal."

16. With respect to the High Court, we are unable to subscribe to the aforesaid interpretation given to the provision

of Section 1 OA of the Act. No doubt, heading of this section suggests that it deals with "permission for establishment of new dental college, new courses of study, etc." However, holistic

- reading of the provisions of this section prescribing the scheme G containing the procedure for establishment of new dental college and new courses of study etc. would clearly demonstrate that this provision applies even to the cases of renewal of such permission as well.

17. In the present case, as already noticed above, the two courses in question were the new courses, along with other courses, for which permission was given by Respondent No.1 for the academic session 2012-13. It is a common case that the procedure contained in section 1 QA for seeking permission, B appli1s to new courses of studies as well. Section 1QA(1)(b) deals with opening of new or higher course of study or training as well as increasing its admission capacity in any course of study or training. In both the eventualities prior permission of Central Government is to be obtained. Explanation 2 clarifies c the meaning of "admission capacity" in relation to any course of study or training to mean "the maximum number of students that may be fixed by the Council from time to time for being admitted to such course or training."

18. When the permission to start courses in two specialties D in question was granted for the academic session 2Q12-13 intake of three students, for seeking renewal for the next academic session 2Q13-14 it was to seek fresh permission to have the same admission capacity for this year as well. We are, therefore, of the opinion that the cases of renewal cannot be E exc:luded from the provisions of Section 1 QA of the Act. It was not disputed before us that when the petitioner-college applied for renewal of the permission, the application was processed in accordance with the procedure laid down in section 1 QA. As per this procedure, when a request is received in the form of a F requisite scheme, as required in sub-section (2) of Section 1 OA

of the Act, the same is to be processed in the manner provided under sub-section (3) thereof. Once it is found by the DCI that all the parameters for granting permission are met, it recommends the grant of approval of the scheme to the Central G Government. In case Scheme it is found to be deficient, subsection (3) (a) of Section 1 OA of the Act casts an obligation on the part of the DCI to give a reasonable opportunity for making a written representation and also to rectify the deficiencies, any, specified by the DCI. After the H recommendation is sent by the DCI to the Central Government,

Central Government is required to process the same in A accordance with the procedure contained in sub-section (4) of Section 1 QA. It can either approve or disapprove the Scheme.

However, in case the Central Government is proposing to disapprove the Scheme, a final decision in this behalf can be taken only after giving the concerned person, authority or B institution, a reasonable opportunity of being heard. This is the mandate of the proviso to Section 1QA (4) of the Act.

19. Thus, the procedure prescribed in Section 1 QA contains the requirement of following this principle of natural C justice at two stages. In the first place, by the DCI when it finds deficiencies while examining the school in the second stage at the level of the Central Government before it passes away adverse orders, as it is the final administrative authority vested with powers to pass such an order. The law, thus specifically

requires that at the stage of a decision by the Central D Government, again an opportunity of being heard is to be provided. This proviso, thus, acknowledges the need of and confers a very valuable right in favour of the petitioner.

2Q. In the present case, the petitioner had been accorded E permission in these two specialties for the previous academic session. Non-renewal thereof in the present academic session has an adverse affect. It has visited the petitioner with civil and/ or evil consequences barring the petitioner to enroll fresh students in this year. We would like to reproduce the following F discussion from the judgment in the case of Sahara India (Firm), Lucknow vs. Commissioner of Income Tax, Central-1 and Anr. (2QQ8) 14 SCC 151

"15.Rules of "natural justice" are not embodied rules. The phrase "natural justice" is also not capable of a precise G definition. The underlying principle of natural justice, evolved under the common law, is to check arbitrary exercise of power by the State or its functionaries. therefore, the principle implies a duty to act fairly, i.e. fair play in action. As observed by this Court in A.K. Kraipak H

and Ors. v. Union of India and Ors.[1970]1SCR457 , the aim of rules of natural justice is to secure justice or to put it negatively to prevent miscarriage of justice. These rules can operate only in areas not covered by any law validly made. They do not supplant the law but supplement it. (Also see: Income Tax Officer and Ors.v. Madnani E:ngineering Works Ltd., Calcutta [1979]1181TR1(SC))

16.

In Swadeshi Cotton Mills v.

Union of India [1981]2SCR533 R.S. Sarkaria, J., speaking for the majority in a three-Judge Bench, lucidly explained the meaning and scope of the concept of "natural justice".

Referring to several decisions, his Lordship observed thus (SCC p.666):

Rules of natural justice are not embodied rules. Being means to an end and not an end in themselves, it is not possible to make an exhaustive catalogue of such rules.

But there are two fundamental maxims of natural justice viz. (i) audi alteram partem and (ii) nemo judex in re sua. The audi alteram partem rule has many facets, two of them being (a) notice of the case to be met; and (b) opportunity to explain. This rule cannot be sacrificed at the altar of administrative convenience or celerity. The general principle - as distinguished from an absolute rule of uniform application - seems to be that where a statute does not, in terms, exclude this rule of prior hearing but contemplates a postdecisional hearing amounting to a full review of the original order on merits, then such a statute would be construed as excluding the audi alteram partem rule at the pre-decisional stage. Conversely if the statute conferring the power is silent with regard to the giving of a predecisional hearing to the person affected and the administrative decision taken by the authority involves civil consequences of a grave nature, and no full review or appeal on merits against that decision is provided, courts will be extremely reluctant to construe

such a statute as excluding the duty of affording even a A minimal hearing, shorn of all its formal trappings and dilatory features at the pre-decisional stage, unless, viewed pragmatically, it would paralyse the administrative process or frustrate the need for utmost promptitude. In short, this rule of fair play must not be jettisoned save in B very exceptional circumstances where compulsive necessity so demands. The court must make every effort to salvage this cardinal rule to the maximum extent possible, with situational modifications. But, the core of it must, however, remain, namely, that the person affected c must have reasonable opportunity of being heard and the hearing must be a genuine hearing and not an empty public relations exercise.

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19.Thus, it is trite that unless a statutory provision either specifically or by necessary implication excludes the application of principles of natural justice, because in that event the Court would not ignore the legislative mandate, the requirement of giving reasonable opportunity of being heard before an order is made, is generally read into the provisions of a statute, particularly when the brder has adverse civil consequences for the party affected. The principle will hold good irrespective of whether the power conferred on a statutory body or tribunal is administrative or quasi-judicial.

20. We may, however, hasten to add that no general rule

of universal application can be laid down as to the G applicability of the principle audi alteram partem, in addition to the language of the provision. Undoubtedly, there can be exceptions to the said doctrine. therefore, we refrain from giving an exhaustive catalogue of the cases where the said principle should be applied. The question H

A whether the principle has to be applied or not is to be considered bearing in mind the express language and the basic scheme of the provision conferring the power; the nature of the power conferred and the purpose for which the power is conferred and the final effect of the exercise B of that power. It is only upon a consideration of all these matters that the question of application of the said principle can be properly determined. (See: Union of India v. Col. J.N. Sinha and Ors. (1970)11LLJ284SC )"

21. It is trite that even in the absence of specific provision C of giving hearing, the hearing is required in such cases unless

specifically excluded by a statutory provision. In such a situation the proviso to sub-section (4) of Section 10 A has to be liberally construed to encompass the cases of renewal of permission as well.

22. In fact, this case itself provides an excellent example of the importance of such a hearing and adhering to the principle of natural justice viz. audi a/teram partem. According to the DCI, even after second inspection some deficiencies E were found. On that basis and without confronting the petitioner and further, it sent its report to the Central Government recommending denial of permission. However, as per the petitioner, there were no such deficiencies. It had filed the additional affidavit dated 2.7.2013 in the High Court in its F attempt to refute the stand of the DCI regarding deficiencies.

To demonstrate, one of the deficiencies pointed out by the DCI was that total number of surgeries/ major as well as minor, conducted by the petitioner-college were far less than the benchmark stated in the Regulations to enable the petitioner G to seek renewal of permission. The DCI had stated that there is requirement of one (1) major Surgery and Eight (8) Minor Surgeries per week as per Performa. However, the surgeries performed by the petitioner-college, as per the Performa attached by the college itself was much less then the aforesaid H requirements. The petitioner-college sought to clarify and

explain this position in its 'aforesaid affidavit dated 2.7.2013 by A pointing out that while calculating the figure, the DCI tiad taken into consideration PG surgeries only and ignored 'the .figure pertaining to UG surgeries whereas the inspection Performa supplied by theDCI categorically mentiof1ed "both U(3 and PG together". It was sought to deino!lstrate ttiat if figures of UG and B PG surgeries are taken together, ttie petitioner-college had satisfied the stipulated requirements. At this juncture, we are not :commenting as to whether the aforesaid stand of the petitioner-college is correct or not. We are highlighting the importance, necessity and justification of granting an c opportunity of being heard by the Central Government as well, before taking final decision after the report of the DCI is sent to the Ce-ntral Government which is against the applicant seeking permission for renewal. In thafevent, if the opportunity

D. of being heard is given, the applicant would get a chance to poirit out mistakes if any, factual or otherwise, in the report of the DCI and the Central Government would have version of the applicant also before it at the time of taking final decision on. the report. In ttie given case itself on such an opportunity of being heard givenby th~ Central Government to the petitioner, E the petitioner could have explained its stand before the Central Government to eriable the Central Government to take a view p.s to whether it should accept the report of DCI or discard the same finding the explanation of the petitioner thereto, as satisfactory. ' ' ' · · ·· : ·

23, The significance of principle of natural justice was highlighted in the case of Managing Director, ECIL, Hyderabad, ' Etc. vs. Karunakar, etc. (1993) 4 SCC 727. Though, it was a

case of disciplinary enquiry against an employee; the rationale given justifying the furnishing of enquiry report and giving an G opportunity to meet, explain and controvert the same would apply here as well, as would be clear from. the following passage in that judgment.: ·

. > • .· . , "The reason why the right to receive the report of the Inquiry H

Officer is considered an essential part of the reasonable opportunity at the first stage and also principle of natural justice is that the findings recorded by the Inquiry Officer form an important material before the disciplinary authority which along with the evidence is taken into consideration by it to come to its conclusion. It is difficult to say in advance, to what extent the said findings including the punishment, if any, recommended in the report would influence the disciplinary authority while drawing its conclusions. The findings further might have been recorded without considering the relevant evidence on record, or by misconstruing it or unsupported by it. If such a finding is to be one of the documents to be considered by the disciplinary authority, the principles of natural justice require that the employee should have a fair opportunity to meet, explain and controvert it before he is condemned.

It is the negation of the tenets of justice and a denial of fair opportunity to the employee to consider the findings recorded by a third party like the Inquiry Officer without giving the employee an opportunity to reply to it. Although it is true that the disciplinary authority is supposed to arrive at its own findings on the basis of the evidence recorded in the inquiry, it is also equally true that the disciplinary authority takes into consideration the findings recorded by the Inquiry Officer along with the evidence on record. In the circumstances, the findings of the Inquiry Officer do constitute an important material before the disciplinary authority which is likely to influence its conclusions. If the

Inquiry Officer were only to record the evidence and forward the same to the disciplinary authority, that would not constitute any additional material before the disciplinary authority of which the delinquent employee has no knowledge. However, when the Inquiry Officer goes further and records his findings, as stated above, which may or may not be based on the evidence on record or are contrary to the same or in ignorance of it, such findings are an additional material unknown to the employee but are

taken into consideration by the disciplinary authority while A arriving at its conclusions. Both the dictates of the reasonable opportunity as well as the principles of natural justice, therefore, require that before the disciplinary authority comes to its own conclusion, the delinquent employee should have an opportunity to reply to the Inquiry B Officer's findings. The disciplinary authority is then required to consider the evidence, the report of the Inquiry Officer and the representation of the employee against it."

24. In fact, judgment of this Court in Priyadarsflini Dental C College & Hospital Vs. Union of India (2011) 4 SCC 623 throws some light on the issue at hand, though this issue did not come up directly for discussion. That was also a case of renewal of permission. DCI h13d sent negative recommendation to refuse permission. On receipt thereof, though the Central Government constituted a committee for giving personal hearing and letter in this behalf was also dispatched, such a hearing was not granted and the renewal permission was declined. The petitioner in that case approached the Madras High Court by filing the Writ Petition which was allowed by the High Court on the ground that mandatory requirement of reasonable opportunity of being heard contained in the proviso

to Section 1 OA(4) of the Act was not complied with. The matter was remitted back to the Central Government to take a decision after giving hearing. Hearing was accorded by the committee constituted by the Central Government which recommended the renewal. However, since the last date of 15th July fixed by this Court had expired, while granting the permission the appellant Institute was asked to approach this Court for seeking Court's approval to get the permission after the expiry of the stipulated period. It was held that in view of the specific provisions G contained in Dental Council of India (Establishment of New Dental College, Opening of New or Higher Course of Study or Training and Increase of Admission Capacity in Dental Colleges) Regulations, 2006 empowering the Central Government to modify the time schedule for reasons to be

A recorded in writing, there was no need to direct the appellant to approach this Court for seekin9 extension and the Centra1 Government could have itself extended the time schedule. In the process, the Bench made certain observations which reflect that even in the case of renewals proviso to sub-section (4) .of _ B Section 1 OA of the Act would be applicable. We reprodtJe

herE!in below those portions from the judgment:

"The Central Government, sent a general Circular d$a • • 21.6.2010 to all dental colleges in whole cases DCI ·d recommended that permission should not be rene'Ne(f, including the Chairmanship of the Director General of Health Services will give a personal hearing to them, as required under the first proviso to Section 1 O-A(4) of ttie Act to consider the proposal for renewal of permission for the BDS course for the academic year 2010-11, on 23.6.2010, 24.6.2010 and 25.6.2010. The said letter was dispatached on 22.6.2010 and reached the petitioner College on 25.6.2010, making it impossible for the petitioner College situated at Chennai (Tamil Nadu) to send its Principal/representative for the personal hearing. In the circumstances, the petitioner College by letter dated 25.6.2010, requested for such hearing. However, such hearing was not granted. By communication dated 15.7.2010, the Central Government communicated its decision not to grant renewal permission to the Dental

College for the academic year 2010-2011. A consequential direction was issued to the College not to admit students. for the academic year 2010-2011.

Feeling aggrieved, the petitioner approached the Madras High Court by filing a writ petition on 19.7.2010 praying that the order of rejection dated 15. 7.2010 be quashed and seeking a direction to the Central Government to permit the College to admit fresh students for the BDS course for the academic year 2010-2011 and also seekin~ a direction to the Central Government to grant renewal

permission to conduct the fourth year of the BDS course A during the academic year 2010-2011. The said writ petition was allowed by the Madras High Court by order dated 29.7.2010. The High Court held that dispatch of the Letter dated 21.6.2010 on 22.6.2010 fixing the personal hearing on 23.6.2010, 24.6.2010 and 25.6.2010, did not B amount to grant of a hearing at all, if the letter reached the College on 25.6.2010, after the time fixed for hearing. It, therefore, held that the mandatory requirement of reasonable opportunity of being heard, required under the proviso to Section 10-A(4) of the Act was not complied c with. As a consequence, the High Court remitted the petitioner's application for renewal of permission for 2010- 2011, for reconsideration by the Central Government, by giving a due hearing to the petitioner. The High Court also directed the three-member Committee constituted by the 0 Central Government to hear the petitioner on 6.8.2010, consider the documents furnished by it and pass final orders. It also reserved liberty to DCI, if necessary, to make further inspection to verify the correctness of the compliance report submitted by the petitioner College and E send a further report so as to reach the three-member Committee of the Central Government before 6.8.2010."

25. We are, therefore, of the considered opinion that the High Court has not correctly interpreted the provisions of Section 1 OA of the Act by holding that the cases of renewal of F permission would not be covered by this Section and therefore it was not necessary for the Central Government to give opportunity of being heard to the petitioner before rejecting the renewal permission.

26. We, accordingly, sum up the legal position, touching G upon the issue, on the interpretation of Section 1 OA (4) of the Act, as below:

(a) Section 1 OA applies to the cases of renewal of permission as well; H

(b) It contemplates grant of opportunity of being heard at two stages. First stage would be at the level of DCI after the scheme is submitted to DCI under sub-section (2) of Section

1 QA of the Act. Once it is found by the DCI that all the parameters for granting permission are met, it recommends the B grant of approval of the scheme to the Central Government. In

case Scheme it is found to be deficient, sub-section (3) (a) of Section 1 QA of the Act casts an obligation on the part of the DCI to give a reasonable opportunity for making a written representation and also to rectify the deficiencies, if any, c specified by the DCI. Second stage of adherence to the principles of natural justice is provided at the level of Centra!

Government at the time when it has to take final decision, after the receipt of the recommendation sent by the OCI. This requirement of hearing is stipulated in proviso to sub-section

(4) of Section 1QA, in the event the Central Government is proposing to disapprove the scheme.

(c) The expression "opportunity of being heard" occurring in this proviso would mean that the material that goes against the applicant and is to be taken into consideration, is to be E supplied to the applicant within an opportunity to make representation. For this purpose either the report of the DCI itself can be supplied or atleast the deficiencies pointed out in the report have to be communicated by the Central Government to the applicant with an opportunity to furnish its comments F thereupon. At that stage while giving its reply, if the applicant claims personal hearing, such a personal heaing should also be accorded.

27. As in the present case, since no such opportunity of G being heard the requirement of proviso to sub-section (4) of

Section 1 QA of the Act was not afforded to the petitioner, the decision dated 30th March 2013 of the Central Government warrants to be set aside on this ground alone.

28. Notwithstanding the aforesaid discussion clarifying the H position in law on this aspect which goes in favour of the

petitioner, other circumstances appearing in this case desist A us from giving the relief to the petitioner that is claimed by it in so far academic session 2013-2014 is concerned. The effect of the aforesaid view taken by us would be to set aside the orders dated 30th March 2013 passed by the Central Government rejecting the request of renewal. However, from that it would not automatically follow that direction can be issued to B

the Central Government to accord such a permission. This Court could only remit the case to the Central Government to pass appropriate orders after giving hearing to the petitioner.

However, it is too late for the Central Government to re-examine c the issue for the current academic session. Fact remains that as per the report of the DCI, there are deficiencies.

Deficiencies are not limited to the number of minor and major surgeries which are required to be performed by a College for second renewal. The argument of the petitioner that while D calculating -the number of surgeries, both PG and UG surgeries are to be taken into consideration was countered by Mr. Rakesh Khanna, learned ASG. This is, therefore, an aspect which the Central Government is supposed to examine. However, there are other deficiencies mentioned by the DCI also in its report.

With respect to Oral Scheme the DCI found the following deficiencies:-

"(i) Clinical training is not upto the mark.

(ii) Back volumes are not available for last ten years.

(vi) No. of cases operated in GA and LA are inadequate.

As far as Ortho Scheme is concerned, the deficiencies noted in the report of DCI are as follows: G

"(i) University affiliation letter dated 27.3.2013 from Pt. B.D.

Sharma University states that the college does not comply for the removal of deficiencies.

(ii) There is deficiency of number of journals.

(iii) Irregular supply of journals.

(iv) Back volumes are available only from 2011.

(v) There is deficiency of clinical material.

(vi) Inspectors have pointed out that the clinical material in the specialty and the OPB are not tallying."

29. As per DCI report, deficiency in the Laboratory C maintained by the petitioner was also found in respect of the

specialties of Oral scheme. It is stated by the DCI that the Dental Institutions are supposed to maintain the Library at two levels. One is called a Central Library which is mainly maintained by UG level and other is maintained by PG in each D and every specialty department. The DCI inspected each

specialty and report is submitted by the Inspector in respect of each specialty. The deficiency has been pointed out in respect of the specialty of Oral stream that the petitioner does not have the back volumes of journals for the last 10 years. Thus, DCI E reported that despite repeated inspections, the deficiencies have been found. In respect of Ortho scheme as well similar deficiencies are pointed out. Therefore, this Court cannot issue any mandamus straightaway and the petitioner is required to give its satisfactory explanation qua the aforesaid deficiencies F to the Central Government. However, the time has run out in so far current year is concerned. The session in respect of PG streams started on 15th July 2013. The necessary admissions have already been given to the students in different colleges.

On remitting the matter, some time will have to be given to the G Central Government as well for taking a fresh decision. If that is also taken into account, by the time. decision is taken, the present academic session would have progressed significantly.

This Court in number of cases highlighted the importance of the cut off date for starting of courses impressing upon that such H deadline should not be extended. (See: Priya Gupta vs. State

of Chhattisgarh (2012) 7 SCC 433 and Maa Vaishno Devi A Mahila Mahavidyalaya vs. State of U.P. (2013) 2 SCC 617)

30. For the aforesaid reasons, we are of the view that in so far as the academic session 2013-14 is concerned, it is not possible to put the clock back. Thus, while setting aside the tmpugned .. orders and remitting the case back to the Central Government for taking fresh decision, we make it clear that it would not relate to the academic session 2013-14. However,

the case can be considered for renewal of permission for the nextacademic session on the basis of existing material. For C this, hearing should be given to the petitioner to demonstrate that they have overcome the deficiencies and they no longer exist. If the Central Government is satisfied on these aspects it may grant renewal permission for the next academic session 2014-15. In case the renewal of permission is rejected, the petitioner will have to undergo the process of seeking fresh D permission for next academic session i.e. 2014-15 by submitting fresh scheme/proposal to the DCI for that year, as per the procedure prescribed in the Act & Regulations.

31. The Special Leave Petition is disposed of in the above E terms. No costs.

Bibhuti Bhushan Bose SLP disposed of.