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Issues: Whether the State Government had the power to withdraw an Essentiality Certificate once granted, and whether Conditions VII and XI inserted in the certificate could validly authorise inspection and withdrawal.
Analysis: The Essentiality Certificate is only a qualifying requirement under the regulatory scheme for establishing a medical college and is meant to assist the Central Government in deciding whether permission should be granted. The statutory scheme under the Indian Medical Council Act, 1956 vests control over establishment, recognition, and regulation of medical education in the Central framework, and does not confer on the State an independent power to inspect a running college or rescind the certificate on grounds unrelated to the original issue of essentiality. The State's withdrawal was found to have been made under dictation of the Medical Council of India, which vitiated the action. The certificate-issuing function was treated as quasi-judicial in nature, so Section 21 of the General Clauses Act, 1897 could not be invoked to imply a power of rescission. Conditions VII and XI, insofar as they reserved a power of inspection and withdrawal, were not supported by the statutory scheme and were therefore ultra vires.
Conclusion: The State Government had no power to withdraw the Essentiality Certificate on the grounds stated, and Conditions VII and XI were illegal and ultra vires. The withdrawal order was quashed.
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