The Supreme Court held that students shifted from Sardar Rajas Medical College and Hospital to other private medical colleges in Odisha after the institution lost recognition must pay fees as applicable at SRMCH, and cannot claim a permanent benefit of subsidised government college fees.
Supreme Court Rejects Claim For Government Fee Benefit
The Supreme Court has held that students transferred from the defunct Sardar Rajas Medical College and Hospital, Odisha, cannot insist on paying subsidised government medical college fees.
The students had moved to other private medical colleges after SRMCH lost recognition.
A Bench of Justice Vikram Nath and Justice Sandeep Mehta said such a benefit would give the students a “windfall”. It would also amount to unjust enrichment.
However, the Court protected the students from higher private college fees.
It clarified that they must pay fees at the rates applicable at SRMCH, their original institution. They need not pay the higher fee structure of the transferee colleges.
₹14 Crore To Be Released To Private Colleges
The Supreme Court directed the release of about ₹14 crore to the three private medical colleges that accommodated the students.
The money came from Selvam Educational and Charitable Trust, which managed SRMCH.
The amount includes the ₹10 crore bank guarantee furnished to the Medical Council of India/National Medical Commission.
It also includes ₹2 crore deposited before the Supreme Court, along with accrued interest.
The three transferee colleges are:
Kalinga Institute of Medical Sciences, IMS & SUM Hospital, and Hi-Tech Medical College, all in Odisha.
Case Arose After SRMCH Lost Recognition
The dispute began after SRMCH lost recognition following inspections by the Medical Council of India.
The inspections found serious deficiencies in infrastructure, faculty, and regulatory compliance.
As a result, MBBS students admitted in the 2013-14 and 2014-15 batches faced an uncertain academic future.
To prevent academic loss, the Supreme Court had earlier helped shift the students through a State-supervised counselling process.
122 Students Shifted To Other Colleges
A total of 124 students faced disruption after SRMCH lost recognition.
Out of them, 122 students moved to three private colleges in Odisha.
These colleges later approached the Supreme Court.
They said they had taught the shifted students and paid stipends for several years.
However, they received only nominal government-rate fees under interim orders of the Court.
According to the colleges, those fees remained far below the fee structure applicable to private medical colleges.
Government Fee Benefit Cannot Continue Indefinitely
The Supreme Court rejected the students’ claim for continued government medical college fee rates.
The Court accepted that the students had faced a chaotic situation.
It also noted that they had not caused the circumstances that led to their transfer.
Even so, the Bench said the students had originally joined a private medical institution.
That institution had a higher fee structure than government medical colleges.
Therefore, the students could not claim government fee benefits only because interim court orders had protected them for some time.
The Court said such a continued benefit would unfairly enrich the transferred students.
Defaulting Institution Must Bear The Burden
The Supreme Court also held that the defaulting institution cannot benefit from its own wrong.
The Bench relied on the legal maxim commodum ex injuria sua nemo habere debet.
The maxim means that no person should gain from their own wrong.
Applying this principle, the Court held that Selvam Educational and Charitable Trust must bear the primary financial burden.
The Court noted that SRMCH failed to maintain mandatory standards for medical education.
It also noted that the Trust had not refunded excess fees collected from students, despite earlier directions.
Colleges To Receive Fees At SRMCH Rates
The Supreme Court recorded that the three private colleges agreed to accept reimbursement at SRMCH fee rates.
They did not insist on their own higher fee structure.
Even at SRMCH rates, the dues came to about ₹16.2 crore.
Therefore, a shortfall would remain even after the release of the secured amount of about ₹14 crore.
Colleges May Approach NMC For Recovery
The Supreme Court allowed the transferee colleges to approach the National Medical Commission.
They may submit details of outstanding dues recoverable from individual students.
The Court directed the NMC to provide redressal for recovery of deficit amounts.
While doing so, the NMC must account for amounts already paid by students at the time of admission to SRMCH.
The Court also clarified that students who comply with the fee liability will receive their academic certificates and course-completion documents without delay.
Accordingly, the Supreme Court disposed of the appeals.
Case Details
Case Title: Soumya Ranjan Panda & Ors. v. Subhalaxmi Dash & Ors.
Court: Supreme Court of India
Bench: Justice Vikram Nath and Justice Sandeep Mehta
Citation: 2026 LiveLaw (SC) 498
Institutions Involved: Sardar Rajas Medical College and Hospital, Kalinga Institute of Medical Sciences, IMS & SUM Hospital, Hi-Tech Medical College
Regulatory Bodies: Medical Council of India, National Medical Commission
Managing Trust: Selvam Educational and Charitable Trust
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The Supreme Court has held that transferred medical students government fees cannot be claimed as a continuing benefit when students originally joined a private medical college.
A Bench of Justice Vikram Nath and Justice Sandeep Mehta ruled that students shifted from Sardar Rajas Medical College and Hospital to other private medical colleges in Odisha cannot insist on subsidised government medical college fees.
The Court said such a benefit would amount to unjust enrichment.
However, the Court also protected the students from higher private college fees. It held that they must pay fees only at the rates applicable at SRMCH, their original institution.
Background Of The Case
The case arose after SRMCH lost recognition following inspections by the Medical Council of India.
The inspections found serious gaps in infrastructure, faculty, and regulatory compliance.
As a result, MBBS students from the 2013-14 and 2014-15 batches faced academic uncertainty.
Therefore, the Supreme Court had earlier helped shift the students through State-supervised counselling.
Students Shifted To Three Private Colleges
A total of 124 students faced disruption.
Out of them, 122 students moved to Kalinga Institute of Medical Sciences, IMS & SUM Hospital, and Hi-Tech Medical College.
The transferee colleges later told the Supreme Court that they had educated the students for several years.
They also said they had paid stipends.
However, they received only government-rate fees under interim orders.
Supreme Court On Fee Liability
The Supreme Court held that the students had originally joined a private medical college.
Therefore, they could not claim subsidised government medical college fees indefinitely.
The Court said transferred medical students government fees cannot become a permanent benefit merely because of interim judicial arrangements.
At the same time, the Court said the students need not pay the higher fees of the transferee colleges.
Instead, they must pay fees at SRMCH rates.
Amount To Be Released
The Supreme Court directed the release of about ₹14 crore to the three private colleges.
This amount includes the ₹10 crore bank guarantee given to the Medical Council of India/National Medical Commission.
It also includes ₹2 crore deposited before the Supreme Court, along with interest.
The Court also allowed the colleges to approach the National Medical Commission for recovery of outstanding dues.
Finally, the Court said students who comply with the fee liability must receive their certificates and course-completion documents without delay.
