Pharmacy Council of India v. Rajeev College of Pharmacy and Ors.
B. R. GAVAI, J.
1. Leave granted in all the Special Leave Petitions.
2.The appeals filed by the Pharmacy Council of India (hereinafter
referred to as “PCI”) mainly challenge the (i) judg ments dated
9th November 2021, passed by the Division Bench of the High Court of
Karnataka at Bengaluru in Writ Appeal No. 746-748 of 2020; (ii) judgment
dated 7 th March 2022, passed by the learned Single Judge of the High
Court of Delhi at New Delhi in Writ Petition (Civil) No.175 of 2021; and
(iii) judgment dated 22 nd April 2022, passed by the learned Single Judge
of the High Court of Chhattisgarh at Bilaspur in Writ Petition (Civil)
No.3766 of 2021. Several interim orders passed by these Courts during
the pendency of these matters are also subject to challenge i n some of
the appeals. They are also being disposed of by the present judgment.
3. By the said judgments and orders, the aforesaid three High
Courts of Karnataka, Delhi and Chhattisgarh had allowed the writ petitions
filed by the respondents-institutions, which were, in turn, filed challenging
the Resolutions/communications of the appellant-PCI dated 17 th July
2019 and 9 th September 2019 and dismissed the Writ Appeals filed by
the PCI. Vide Resolution/Communication dated 17 th July 2019, the
appellant-PCI had resolved to put a moratorium on the opening of new
pharmacy colleges for running Diploma as well as Degre e courses in
pharmacy for a period of five years beginning from the Academic Year
2020-2021. Vide Resolution/communication dated 9 th September 2019,
69
the aforesaid moratorium was modified, thereby exempting its application
to (i) Government Institutions; (ii) Institutions in North Eastern region;
and (iii) States/Union Territories where the number of institutions offering
D. Pharm and B. Pharm courses (both combined) is le ss than 50.
Additionally, vide the said Resolution/communication dated 9 th September
2019, the institutions which had applied for opening colleges offering
D.Pharm and/or B. Pharm courses for 2019-2020 academic s ession
were allowed to apply for conducting diploma as well as degree courses
in Academic Session 2020-2021 and existing approved pharmacy
institutions were allowed to increase the intake capacit y as per PCI
norms and/or to start additional pharmacy course(s).
4.The writ petitions filed by the Institutions before the three High
Courts challenged the validity of the said moratorium and al so prayed
for a direction to be issued to the appellant-PCI to grant approval for
opening new pharmacy institutions imparting pharmacy courses for the
ensuing academic year of 2022-2023 on the basis of inspection conducted
by the PCI in February 2020 and to not insist on fresh applications from
the institutions pursuant to the PCI’s circular of 3 rd July 2022, which was
issued in compliance of the interim order of this Court dated 31 st May
2022 passed in Special Leave Petition (Civil) No.4862 of 2022.
5. We have heard Shri Maninder Singh, learned Senior Counsel
appearing on behalf of the appellant-PCI and Shri Rakesh Dwivedi and
Shri Vinay Navare, learned Senior Counsel, Shri Amit Pai, Shri Sanjay
Sharawat, Shri Siddharth R. Gupta, and Shri Shivam Singh, le arned
counsel appearing on behalf of their respective respondent(s).
6.Shri Maninder Singh, learned Senior Counsel would submit that
the High Courts have totally erred in interfering with the Re solution
dated 17 th July 2019 passed by the appellant-PCI. He submits that the
perusal of the preamble of the Pharmacy Act, 1948 (hereinafter referred
to as “the said Act”) read with Sections 3, 10 and 12 there of would
clearly reveal that the appellant-PCI has a power to regulate in the field
of pharmacy education. He submits that the power to regulate would
also include a power to put a moratorium for a certain period. The learned
Senior Counsel submits that perusal of Section 3 of the said Act would
reveal that the Central Council of the PCI consists of experts from various
fields including teachers in the subject concerning pharmacy, elected by
the University Grants Commission (“UGC” for short), persons possessing
a degree or diploma in and practicing pharmacy or pharmace utical
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
chemistry, nominated by the Central Government; a representa tive of
the Medical Council of India; representatives of States elected from the
members of the State Council, so also a member to represent each State
nominated by the State Government, who shall be a r egistered
pharmacist. He, therefore, submits that the Body, which consists of so
many experts from various fields, is a Body which is competent to take
decisions in the best interests of the pharmacy education.
7. Shri Maninder Singh, learned Senior Counsel submits that the
decision was taken by the appellant-PCI after a sub-committee of experts
was appointed to study the issue. It is submitted that af ter the sub-
committee recommended moratorium in view of mushrooming growth
of pharmacy colleges, the Central Council of the appellant-PCI , after
taking into consideration all these aspects, recommended a moratorium.
He submits that this was done in order to prevent a situa tion which
would lead to uncontrolled growth of pharmacy colleges, resultantl y
producing many pharmacists, who will be without any employment. It is
submitted that these factors have not been taken into consider ation by
the High Courts in the impugned judgments.
8. Shri Maninder Singh further submitted that the perusal of the
Communication of the Government of India, Ministry of Health & Family
Welfare dated 22 nd April 2022 would reveal that the Central Government
was consulted as required under Section 10 of the said Act.
9.Shri Maninder Singh further submitted that the power to regulate
would also include a power to prohibit. He relies on the judgments of
this Court in the case of Madhya Bharat Cotton Association Ltd. vs.
Union of India and another 1 and in the case of Star India Private
Limited vs. Department of Industrial Policy and Prom otion and
others 2 in this regard.
10.Shri Maninder Singh would further submit that a Division Bench
of the Bombay High Court, Aurangabad Bench, in a batch of writ petitions
being Writ Petition No. 4919 of 2020 ( Sayali Charitable Trust’s College
of Pharmacy vs . The Pharmacy Council of India, decided on 6 th
November 2020 ) along with connected matters has upheld the
moratorium. He submits that, however, the said judgment of the Bombay
High Court has not been considered by all the three High Courts of
Karnataka, Delhi and Chhattisgarh.
1 AIR 1954 SC 634
2 (2019) 2 SCC 104
71
11.Shri Maninder Singh submits that, having regard to the scheme
of the said Act and the purpose sought to be achieved therein, i t will
have to be held that it is not only the jurisdiction of the PCI, but its duty
and responsibility to impose a moratorium so as to prevent mushrooming
growth of pharmacy colleges in the country. Learned Senior Counse l
further submits that the power to impose such regulations has been upheld
by this Court in the case of Jawaharlal Nehru Technological
University Registrar vs. Sangam Laxmi Bai Vidyapeet and others 3.
He submits that the facts in the present case and the facts in the case of
Jawaharlal Nehru Technological University Registrar (s upra) are
totally identical. It is, therefore, submitted that the view taken by all the
three High Courts is liable to be set aside and it is required to be held that
the moratorium imposed, being in the larger public interest, is legal and
valid.
12.Shri Maninder Singh relies on the judgment of this Court in the
case of Jigya Yadav (Minor) (Through Guardian/Father Hari Singh)
vs. Central Board of Secondary Education and others 4 in support of
his submission that the moratorium could also be imposed by a resolution
of the appellant-PCI and it would be a law as per Article 13 of the
Constitution of India.
13. Per contra, Shri Rakesh Dwivedi, learned Senior Counsel,
submitted that it is the fundamental right of the respondent – Institutions
to establish educational institutions under Article 19(1)(g) of the
Constitution of India. He relies on the judgments of this Court in t he
cases of T.M.A. Pai Foundation and others vs. State of Karnataka
and others 5, Islamic Academy of Education and another vs. State of
Karnataka and others 6, and P.A. Inamdar and others vs. State of
Maharashtra and others 7 in that regard .
14. Shri Rakesh Dwivedi submits that there is no doubt t hat
reasonable restrictions could be imposed on the fundamental ri ghts.
However, the burden lies on the State to establish that the restrictions so
imposed are reasonable and have a nexus with the object to be achieved.
He submits that the appellant-PCI has totally failed to discharge the said
3 (2019) 17 SCC 729
4 (2021) 7 SCC 535
5 (2002) 8 SCC 481 [Para 18 to 25]
6 (2003) 6 SCC 697 [Para 120]
7 (2005) 6 SCC 537 [Para 92]
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
burden. It is submitted that the restriction, which is in the nature of absolute
prohibition, is totally unreasonable, arbitrary and discrimi natory. It is
submitted that it has no nexus with the object to be achieved.
15. Shri Rakesh Dwivedi further submits that the impugned
communications of the appellant-PCI are arbitrary. T o buttress his
submission that the impugned communications of the appellant-PCI are
arbitrary, Shri Rakesh Dwivedi submitted that the appellant-PCI itself
has exempted Government Colleges from the moratorium imposed, which
has in effect added about 34000 seats in the field of pharma cy. He
further submits that the impugned communication exempts the North
Eastern region from its operation. As such, the power has been exercised
in a manifestly arbitrary manner. It is submitted that the only justification
given is that if there is no moratorium, it will lead to unemployment. He
submits that if such a ground is to be accepted, then all t he colleges
imparting education in different areas like Medicine, Law, Engineering,
Technology, etc. will have to be banned.
16.Shri Rakesh Dwivedi further submitted that, unless the power
to ban is specifically provided in the statute, such a pow er cannot be
exercised. In any case, he submitted that if such a power was to be
exercised, the same could have been exercised only by framing a
Regulation in accordance with Section 10 of the said Act. He furt her
submitted that for such a Regulation to be valid, the following four factors
are required to be complied with:
(i) The copies of the draft Regulations should be furnished by
the Central Council to all the State Governments and before
the Central Council submits the Education Regulations to the
Central Government for approval, the comments of the State
Governments are to be invited and considered;
(ii) That such Regulations must have approval of the Central
Government;
(iii) In view of Section 10(4), such Regulations will have to be
published in the Official Gazette;
(iv) In view of sub-section (4) of Section 18 of the said Act, such
Regulations have to be laid before each House of Parliament.
17.Shri Vinay Navare, learned Senior Counsel submitted that the
perusal of Section 3 of the said Act would reveal that the Central Council
73
of the appellant-PCI consists essentially of persons who are connected
with the practice of Pharmacy. He submits that the moratorium is imposed
with a mala fide intention by those persons who are already connected
with the profession of Pharmacy so as to create a monopoly in the field.
He submits that if the composition of the Central Council of the appellant-
PCI under the said Act is compared with the composition of the Council
under the All India Council for Technical Education Act, 1987 (hereinafter
referred to as “AICTE Act”), it would reveal that the Council under the
AICTE Act has a wider spectrum. It also consists of the p ersons not
connected with Technical Education.
18. Shri Navare further submitted that the powers under Section
10 of the AICTE Act are much wider than the powers of the C entral
Council under Section 10 of the said Act.
19. Shri Navare further submitted that the Resolution wh ich is
sent to the State Government is only for the purpose of intimation and,
therefore, there is no sufficient compliance of requirement under Section
10(3) of the said Act.
20. Relying on the judgment of this Court in the case of V.T.
Khanzode and others vs. Reserve Bank of India and another 8, Shri
Navare submits that since the appellant-PCI is a statutory body, its powers
would be circumscribed by the statutory provisions. He submitted that
since the power to impose prohibition is not provided under the said Act,
such an exercise is wholly impermissible in law.
21. He further submits that there can be no restrict ions on
fundamental rights except by a valid law enacted by the legislature. In
this respect, he relies on the judgment of this Court in the case of Modern
School vs. Union of India and others 9.
22.Shri Navare further submits that the words used in sub-section
(1) of Section 10 of the said Act are “subject to the app roval of the
Central Government”. He, therefore, submits that unless there is an
approval of the Central Government with regard to the moratorium, the
same would not be valid in law. He relies on the judgments of this Court
in the cases of Padubidri Damodar Shenoy vs. Indian Airlines
8 (1982) 2 SCC 7
9 (2004) 5 SCC 583
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
Limited and another 10 , and Vijay S. Sathaye vs. Indian Airlines
Limited and others 11 in support of this proposition.
23.Shri Amit Pai, learned counsel also submitted that the impugned
communications are totally beyond the powers of the appellant-PCI and,
as such, no interference is warranted with the impugned judgments and
orders of the High Courts.
24. Shri Sanjay Sharawat, learned counsel submitted that the
decision to impose moratorium has been taken by the appellant- PCI
without conducting any survey. No material is placed on record in support
of its decision. He submits that the decision to impose mor atorium is
wholly arbitrary. He further submits that the appellant-PCI has acted in
an arbitrary manner. On one hand, it has imposed ban and on the other
hand it has granted permission to about 2500 institutions to start pharmacy
courses. As such, it has acted in a totally arbitrary and d iscriminatory
manner.
25. Shri Siddharth Gupta, learned counsel, submitted that the
impugned communications are totally discriminatory in nature and tend
to create a monopoly in respect of the existing colleges inas much as
they have been permitted to expand the number of existing sea ts. He
further submits that the cap of 50 colleges imposed for all the States is
totally arbitrary. He submits that the cap for a highly populated State like
Uttar Pradesh and for a small State like Goa is the same. H e submits
that in the State of Chhattisgarh, 7 colleges have been granted permission
on the ground that they were in the pipeline. As such, there is no
consistency in the policy of the appellant-PCI. He relies on the judgments
of this Court in the case of Index Medical College, Hospital and
Research Centre vs. State of Madhya Pradesh and others 12 in support
of his submission.
26. Relying on the judgment of this Court in the case of Modern
Dental College and Research Centre and others vs. State of Madhya
Pradesh and others 13 , he submits that unless the impugned restriction
satisfies the test of proportionality of restrictions, the same would not be
tenable in law. He submits that it will be necessary to find out as to
10 (2009) 10 SCC 514
11 (2013) 10 SCC 253
12 2021 SCC OnLine SC 318
13 (2016) 7 SCC 353
75
whether the limitation on constitutional rights is for a purpose which is
reasonable and necessary in a democratic society. He submits that
applying the said test, the impugned communication which impos ed a
total ban for a period of five years does not stand the proportionality
test.
27.Shri Shivam Singh, learned counsel submitted that the decision-
making process is totally vitiated. He submits that taking into consideration
the pandemic situation, the Authorities ought to have considered that
there is a need to have a larger number of Pharmacy colleges. However,
this aspect has been totally ignored by the appellant-PCI.
28. All the three High Courts, i.e., Karnataka, Delh i and
Chhattisgarh, while allowing the writ petitions filed by the respondent-
institutions and quashing and setting aside the Res olutions/
communications of the Central Council of the appellant-PCI, have, in a
nutshell, held thus:
(i) That the right to establish educational institut ions is a
fundamental right guaranteed under Article 19(1)(g) of the
Constitution of India;
(ii) That there can be reasonable restrictions on such a rig ht.
However, such a restriction can be imposed only by law
enacted by the competent legislature;
(iii) The Resolution/communication dated 17 th July 2019, vide
which the moratorium was imposed is an executive instruction
and could not be construed as a law and, therefore, the
moratorium imposed by an executive instruction is n ot
sustainable in law.
29. Apart from that, the learned Single Judge of the Karnat aka
High Court has further found that the petitioners before the High Court
were entitled to establish colleges on the principles of promissory estoppel
and legitimate expectation. The learned Single Judge of the Karnataka
High Court as well as the learned Single Judge of the Delhi High Court
have also held that the Resolution of the appellant-PCI was violative of
Article 14 of the Constitution of India inasmuch as the gove rnment
institutions and the institutions in the North Eastern region were exempted
from the applicability of the moratorium. It was found that such an act
was discriminatory. It was further found that the cap of 50 Pharma
institutes per State was also arbitrary inasmuch as the a ppellant-PCI
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
does not take into consideration the fact that the population of the States
varies from State to State and, as such, there could not have been a
uniform formula of capping 50 pharmacy institutes for every State.
30. Undisputedly, the Central Council of the appellant-PCI vide
its Resolution/communication dated 17 th July 2019 has resolved as under:
“RESOLUTION
Taking into consideration the availability of sufficient qualified
pharmacist workforce, the House unanimously resolved to put a
moratorium on the opening of new pharmacy colleges for running
Diploma as well as Degree course in pharmacy for a peri od of
five years beginning from the academic year 2020-2021. This
moratorium shall not be applicable in the North Eastern region of
the country where there is a shortage of pharmacy colleg es.”
31. It can thus be seen that vide the said Resolution, the Central
Council resolved to put a moratorium on the opening of new pharmacy
colleges for running Diploma as well as Degree course in pharmacy for
a period of five years beginning from the academic year 2020-2021.
The said Resolution dated 17 th July 2019 was modified in the 107 th meeting
of the Central Council of the appellant-PCI held on 5 th and 6 th August
2019. The relevant part of the modified Resolution reads thus:
“1252.4 In view of it, it was unanimously decided tha t
moratorium on the opening of new pharmacy
colleges for running Diploma as well as Degree
course in pharmacy for a period of five years
beginning from the academic year 2020-2021 will
be subject to following conditions-
a) The moratorium will not apply to the
Government institutions.
b) The moratorium will not apply to the institutions
in North Eastern region.
c) The moratorium will not apply to the States/
Union Territories where the number of D.
Pharm and B. Pharm institutions (both
combined) is less than 50.
d) The institutions which had applied for opening
D. Pharm and/or B. Pharm colleges for 2019-
77
20 academic session either to the PCI or to
the AICTE and the proposal was rejected or
not inspected due to some reason or the other
will be allowed to apply for 2020-21 academic
session and this relaxations is given only for
one year i.e. for 2020-21 academic session
only.
e) Existing approved pharmacy institutions will
be allowed to apply for increase in intake
capacity as per PCI norms and/or to start
additional pharmacy course(s).”
32. It is thus clear, and in all fairness, not even disputed by the
appellant-PCI, that the moratorium was issued by the Central Council of
the appellant-PCI in its executive powers and not by framing any
regulation, as provided under Sections 10 and 18 of the said Act.
33. The moot question, therefore, that requires consideration, is
as to whether the moratorium, as imposed by the Central Council of the
appellant-PCI, could have been imposed by the said Resolution, which is
in the nature of an executive instruction of the Central Council.
34.It will be relevant to refer to the following observations of the
Constitution Bench, consisting of 11 Judges, of this Court in the case of
T.M.A. Pai Foundation (supra) :
“18. With regard to the establishment of educational institutions,
three articles of the Constitution come into play. Article 19(1)( g)
gives the right to all the citizens to practise any profession or to
carry on any occupation, trade or business; this right is subject to
restrictions that may be placed under Article 19(6). Article 26
gives the right to every religious denomination to establish and
maintain an institution for religious purposes, which would include
an educational institution. Article 19(1)( g) and Article 26, therefore,
confer rights on all citizens and religious denominations to establish
and maintain educational institutions….”
35. It could thus clearly be seen that the Constitution Bench of
this Court in the aforesaid case, in unequivocal terms, holds that in view
of Article 19(1)(g) and Article 26 of the Constitution of India, all citizens
and religious denominations are conferred with a right to establish and
maintain educational institutions.
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
36.Another Constitution Bench, consisting of five Judges, of this
Court in the case of Islamic Academy of Education (supra) has held
thus:
“120 . So far as institutions imparting professional education are
concerned, having regard to the public interest, they are bound to
maintain excellence in the standard of education. To that extent,
there cannot be any compromise and the State would be entitled
to impose restrictions and make regulations both in terms of Article
19(1)( g) and Article 30 of the Constitution of India. The width of
the rights and limitations thereof of unaided institutions whether
run by a majority or a minority must conform to the maintenance
of excellence. With a view to achieve the said goal, indisputably,
the regulations can be made by the State.
121. The right to administer does not amount to the right to
maladminister and the right is not free from regulati on. The
regulatory measures are necessary for ensuring orderly, efficient
and sound administration. The regulatory measures can be lai d
down by the State in the administration of minority institutions.”
37. It could thus be seen that the Constitution Bench in Islamic
Academy of Education (supra) holds that the State would be entitled
to impose restrictions and make regulations both in terms of Article
19(1)( g) and Article 30 of the Constitution of India for maintaining
excellence in the standard of education. It has been held that regulatory
measures are necessary for ensuring orderly, efficie nt and sound
administration.
38.Thereafter the Constitution Bench, consisting of Seven Judges,
of this Court in the case of P.A. Inamdar (supra) , observed thus:
“92. As an occupation, right to impart education is a fundamental
right under Article 19(1)( g) and, therefore, subject to control by
clause (6) of Article 19. This right is available to all citizens without
drawing a distinction between minority and non-minority. Such a
right is, generally speaking, subject to the laws imposing reasonable
restrictions in the interest of the general public. In particular, laws
may be enacted on the following subjects: ( i) the professional or
technical qualifications necessary for practising any profession or
carrying on any occupation, trade or business; ( ii) the carrying on
79
by the State, or by a corporation owned or controlled by the State
of any trade, business, industry or service whether to the exclusion,
complete or partial of citizens or otherwise. Care is taken of
minorities, religious or linguistic, by protecting their right to establish
and administer educational institutions of their choice under Article
30. To some extent, what may be permissible by way of restriction
under Article 19(6) may fall foul of Article 30. This is the additional
protection which Article 30(1) grants to the minorities.”
39.It could thus be seen that the Constitution Bench of this Court
in P.A. Inamdar (supra) has again reiterated that the right to impart
education is a fundamental right under Article 19(1)( g) and, therefore,
subject to control by clause (6) of Article 19. It has been held that such
a right is subject to the laws imposing reasonable restrictions in the interest
of the general public. It has further been held that the la ws may be
enacted for prescribing the professional or technical qualifications
necessary for practising any profession or carrying on any occupation,
trade or business. The laws could also be enacted for the pu rposes of
the carrying on by the State, or by a corporation owned or controlled by
the State of any trade, business, industry or service whet her to the
exclusion, complete or partial of citizens or otherwise.
40. In the case of Modern Dental College and Research Centre
(supra) , the Constitution Bench, consisting of Five Judges, of this Court
held that though private unaided minority and non-minority institutions
have a right to establish educational institutions, in order to balance the
public interest, the State is also empowered to frame Regulations in the
interest of general public. This Court held that, while cons idering the
scope of reasonable restrictions which are sought to be brought in, in the
interest of the general public, the exercise that is required to be undertaken
is the balancing of the fundamental rights to carry on a trade or occupation
on one hand and the restrictions so imposed on the other hand. Th is
Court held that it was necessary to find out as to whether the restrictions
so imposed were proportional or not.
41. It is thus clear that though there is a fundamental right t o
establish educational institutions, the same can be subject to reasonable
restrictions, which are found necessary in the general publi c interest.
However, the question that requires to be answered is as to whether the
same can be done by executive instructions or not.
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
42.The question is directly answered by this Court in the case of
State of Bihar and others vs. Project Uchcha Vidya, Si kshak Sangh
and others 14 in paragraph 69, which reads thus:
“69. The right to manage an institution is also a right to property.
In view of a decision of an eleven-Judge Bench of this Court
in T.M.A. Pai Foundation v. State of Karnataka [(2002) 8 SCC
481] establishment and management of an educational institution
has been held to be a part of fundamental right being a r ight of
occupation as envisaged under Article 19(1)( g) of the Constitution.
A citizen cannot be deprived of the said right exce pt in
accordance with law. The requirement of law for the pur pose
of clause (6) of Article 19 of the Constitution can by no stretch
of imagination be achieved by issuing a circular or a policy
decision in terms of Article 162 of the Constitution or otherwise.
Such a law, it is trite, must be one enacted by the legi slature .”
[emphasis supplied]
43.It could thus be seen that this Court has categorically held that
a citizen cannot be deprived of the said right except in accordance with
law. It has further been held that the requirement of law for the purpose
of clause (6) of Article 19 of the Constitution can by no s tretch of
imagination be achieved by issuing a circular or a policy decision in terms
of Article 162 of the Constitution or otherwise. It has been h eld that
such a law must be one enacted by the legislature.
44. Shri Maninder Singh, learned Senior Counsel, relied on the
judgment of this Court in the case of Jawaharlal Nehru Technological
University Registrar (supra) to submit that in the said case also, a
moratorium which was imposed by the State of Telangana was found to
be valid since it was done to control mushrooming growth of educational
institutions.
45. A perusal of the judgment of this Court in the ca se of
Jawaharlal Nehru Technological University Registrar (supra) would
reveal that this Court found that Section 20 of the Telangana Education
Act, 1982 specifically empowered the State to issue such a direction
imposing a moratorium. No such provision can be found in the said Act,
which would empower such a restriction to be imposed by the Resolution
of the Central Council.
14 (2006) 2 SCC 545
81
46.It will also be relevant to refer to the following observation of
the Constitution Bench, consisting of five Judges, of this Cour t in the
case of State of M.P. vs. Thakur Bharat Singh 15 :
“Viewed in the light of these facts the observations relied upon do
not support the contention that the State or its officers may in
exercise of executive authority infringe the rights of the citizens
merely because the Legislature of the State has the power to
legislate in regard to the subject on which the executive order is
issued.”
47.It is thus clear that the Constitution Bench of this Court holds
that the State or its officers cannot exercise its execut ive authority to
infringe the rights of the citizens merely because the Legislature of the
State has the power to legislate in regard to the subject on which the
executive order is issued.
48. It could thus be seen that the Constitution Bench holds t hat
even an Executive cannot do something to infringe the rights of the
citizens by an executive action, though the State Legislature has legislative
competence to legislate on the subject.
49. Shri Maninder Singh, learned Senior Counsel appearing on
behalf of the appellant-PCI, relies on the judgment of this Court in the
case of Jigya Yadav (Minor) (Through Guardian/Father Hari Singh)
vs. Central Board of Secondary Education and others (supra) in
support of his contention that since the Central Council of the appellant-
PCI is a public authority and discharges public functions, the Resolution
resolved by it would partake the character of a law within the meaning
of Article 13 of the Constitution of India. It may be noted that in the case
of Jigya Yadav (Minor) (Through Guardian/Father Hari S ingh)
vs. Central Board of Secondary Education and others (supra) , this
Court was considering the powers of the Central Board of Secondary
Education (“CBSE” for short), which is a society registered un der the
Societies Registration Act, 1860. CBSE is not a body incorporated under
any statutory provisions. However, the Central Council of the appellant-
PCI is a statutory body constituted under the said Act.
50. It will be relevant to refer to the observations of this Court in
the case of Shrimati Hira Devi and others vs. District Board,
Shahjahanpur 16 , which reads thus:
15 (1967) 2 SCR 454
16 (1952) SCR 1122
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
“The defendants were a Board created by statute and were
invested with powers which of necessity had to be found within
the four corners of the statute itself.
51.It will also be relevant to refer to paragraph 18 of the judgment
of this Court in the case of V.T. Khanzode (supra) , which is as follows:
“18. In support of this submission, reliance is placed by the learned
counsel on the statement of law contained in para 1326 and 1333
(pp. 775 and 779) of Halsbury’s Laws of England , 4th Edn. In
para 1326 it is stated that:
“Corporations may be either statutory or non-statutory,
and a fundamental distinction exists between the powers and
liabilities of the two classes. Statutory corporations have such
rights and can do such acts only as are authorised directly or
indirectly by the statutes creating them; non-statu tory
corporations, speaking generally, can do everything that an
ordinary individual can do unless restricted directly or indirectly
by statute.”
Para 1333 says that:
“The powers of a corporation created by statute are
limited and circumscribed by the statutes which regulate it ,
and extend no further than is expressly stated therein, or is
necessarily and properly required for carrying into effect the
purposes of its incorporation, or may be fairly regarded as
incidental to, or consequential upon, those things which the
legislature has authorised. What the statute does not expressly
or impliedly authorise is to be taken to be prohibited.”
There is no doubt that a statutory corporation can do only
such acts as are authorised by the statute creating it and that,
the powers of such a corporation cannot extend beyond what
the statute provides expressly or by necessary implication. If
an act is neither expressly nor impliedly authorised by the
statute which creates the corporation, it must be taken to be
prohibited. This cannot, however, produce the result for which
Shri Nariman contends. His contention is not that the Cent ral
Board has no power to frame staff regulations but that it must do
so under Section 58(1) only. On that argument, it is materia l to
83
note that Section 58(1) is in the nature of an enabling pro vision
under which the Central Board “may” make regulations in order
to provide for all matters for which it is necessary or convenient
to make provision for the purpose of giving effect to the provisions
of the Act. This provision does not justify the argument that staff
regulations must be framed under it or not at all. The substance of
the matter is that the Central Board has the power to frame
regulations relating to the conditions of service of the Bank’s staff.
If it has that power, it may exercise it either in accordanc e with
Section 58(1) or by acting appropriately in the exercise of its general
power of administration and superintendence.”
[emphasis supplied]
52. It could thus be seen that this Court has approved paragraph
1326 and 1333 (pp. 775 and 779) of Halsbury’s Laws of England , 4th
Edition, to the effect that a statutory corporation can do only such acts
as are authorised by the statute creating it and that the powers of such a
corporation cannot extend beyond what the statute provides ex pressly
or by necessary implication. Though in the said case, this Court held that
the said principle is not applicable inasmuch as the Centr al Board has
the power to frame regulations relating to the conditions of se rvice of
the Bank’s staff, the said principle will indeed be applicable to the case
at hand.
53.Shri Maninder Singh, learned Senior Counsel, further submitted
that the preamble of the said Act itself used the word “regulate” and the
word “regulate” would include within its ambit the power to “prohibit”.
Strong reliance is placed on the judgment of this Court in the ca se of
Star India Private Limited (supra) . However, it is to be noted that in
the said case, certain clauses of the Telecommunication (Broadcasting
and Cable) Services Interconnection (Addressable Systems) Regulations,
2017 notified on 3-3-2017, made under Section 36 of the Teleco m
Regulatory Authority of India Act, 1997, together w ith the
Telecommunication (Broadcasting and Cable) Services (Eighth)
(Addressable Systems) Tariff Order, 2017 notified on the sam e date
were under challenge . In the present case, what is being sought to be
done was done by a Resolution of the Central Council of the appellant-
PCI and not by any Regulation framed under the provisions of the said
Act. As such, the judgment of this Court in the case of Star India Private
Limited (supra) is not applicable to the facts of the present case.
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]
54. Shri Maninder Singh further relied on the judgment of the
Division Bench of the Bombay High Court, Aurangabad Bench, in Sayali
Charitable Trust’s College of Pharmacy (supra) . However, since we
have held that the right to establish an educational in stitution is a
fundamental right under Article 19(1)(g) of the Constitution of India and
reasonable restrictions on such a right can be imposed only by a law and
not by an execution instruction, we are of the view that the Di vision
Bench of the Bombay High Court, Aurangabad Bench, in the said case
does not lay down the correct position of law. In our view, th e view
taken by the High Courts of Karnataka, Delhi and Chhattisgarh lays
down the correct position of law.
55.Since we have held that the Resolutions/communications dated
17 th July 2019 and 9 th September 2019 of the Central Council of the
appellant-PCI, which are in the nature of executive instructions, could
not impose restrictions on the fundamental right to establish educational
institutions under Article 19(1)(g) of the Constitution of India, we do not
find it necessary to consider the submissions advanced on other issues.
We find that the Resolutions/communications dated 17 th July 2019 and
9th September 2019 of the Central Council of the appellant-PCI are
liable to be struck down on this short ground.
56. Before parting, we may observe that there could indeed be a
necessity to impose certain restrictions so as to preven t mushrooming
growth of pharmacy colleges. Such restrictions may be in the l arger
general public interest. However, if that has to be done, it has to be done
strictly in accordance with law. If and when such restrictions are imposed
by an Authority competent to do so, the validity of the same can always
be scrutinized on the touchstone of law. We, therefore, refr ain from
considering the rival submissions made on that behalf.
57.It is further to be noted that the applications seeking approval
for D. Pharm and B. Pharm courses are required to be accompanied by
a “No Objection Certificate” (“NOC”) from the State Government and
consent of affiliation from the affiliating bodies. While scrutinizing such
applications, the Council can always take into consideration various factors
before deciding to allow or reject such applications. Merely because an
institution has a right to establish an educational institution does not mean
that such an application has to be allowed. In a particular area, if there
are more than sufficient number of institutions already existing, the Central
Council can always take into consideration as to whether it is necessary
85
or not to increase the number of institutions in such an area. However, a
blanket prohibition on the establishment of pharmacy colleges cannot be
imposed by an executive resolution.
58. In the result, the appeals filed by the Pharmacy Council of
India are dismissed. However, in the facts and circumstanc es of the
case, there shall be no order as to costs.
59.The writ petitions filed by the institutions shall stand disposed
of in terms of the above.
60.Pending application(s), if any, shall also stand disposed of.
CIVIL APPEAL ARISING OUT OF SPECIAL LEAVE
PETITION (CIVIL) NO.1887 OF 2022 [SHAHEED TEG
BAHADUR COLLEGE OF PHARMACY VS. PHARMACY
COUNCIL OF INDIA]
61.The appeal filed by Shaheed Teg Bahadur College of Pharmacy
challenges the order dated 23 rd December 2021 passed by the learned
Single Judge of the High Court of Delhi at New Delhi in CM Application
No. 41337 of 2021 in Writ Petition (Civil) No.175 of 2021.
62. In view of the judgment passed by this Court today in Civil
Appeal arising out of Special Leave Petition (Civil) No.19671 of 2021
and connected matters, this appeal has been rendered infructuous and is
disposed of as such. However, there shall be no order as to costs. Pending
application(s), if any, shall stand disposed of.
Divya Pandey Appeals dismissed.
PHARMACY COUNCIL OF INDIA v. RAJEEV COLLEGE OF
PHARMACY AND ORS. [B. R. GAVAI, J.]