Supreme Court Of India ruled that 122 students relocated from the defunct Sardar Rajas Medical College and Hospital (SRMCH) to three private Odisha colleges must pay outstanding fees at original SRMCH rates. 

Rejecting the notion that the displaced MBBS batches could permanently claim subsidised government-institution fees, a bench of Justice Vikram Nath and Justice Sandeep Mehta stated that doing so would constitute unjust enrichment.

Financial Redressal And Trust Liability

As reported by Live Law, the dispute arose after the Medical Council of India stripped SRMCH of its recognition due to critical infrastructure and faculty deficiencies, threatening the futures of the 2013-14 and 2014-15 batches. 

To safeguard their education, the apex court previously facilitated a state-supervised transfer of 124 affected students, with 122 ultimately joining Kalinga Institute of Medical Sciences, IMS & SUM Hospital, and Hi-Tech Medical College.

Invoking the legal maxim commodum ex injuria sua nemo habere debet, the bench held that the managing Selvam Educational and Charitable Trust must bear the primary financial blame for failing to maintain educational standards and withholding excess fee refunds. 

Consequently, the Court ordered the release of approximately Rs 14 crore in secured trust assets, comprising a Rs 10 crore bank guarantee and a Rs 2 crore apex court deposit, plus accrued interest, to the transferee colleges.

Recovery Mechanism For Shortfalls

Though the private institutions provided years of education and stipends under nominal interim government rates, they agreed to accept final reimbursements matched strictly to SRMCH’s fee structure rather than their own higher rates. This calculation leaves a shortfall against the Rs 16.2 crore total dues.

The bench permitted the colleges to coordinate with the National Medical Commission (NMC) to recover individual deficit amounts, accounting for what students initially paid at SRMCH. 

Crucially, the court clarified that students clearing their determined liabilities will promptly receive their academic certificates, effectively disposing of the appeals.