Monday 12 January 2015

Inter-se merit of in-service candidates to post-graduate medical courses cannot be overlooked only to promote seniority which has no place in the scheme of MCI Regulations, holds the Apex Court



JUDGMENT IN REVIEW :

Dealing with a challenge1 to the constitutionality of Section 5(4) of the Kerala Medical Officers’ Admission to Postgraduate Courses under Service Quota Act, 2008 which provides for a select list of in-service medical officers for postgraduate medical education to be based strictly on the basis of seniority, the Supreme Court has held that "a meritorious in-service candidate cannot be denied admission only because he has an eligible senior above him though lower in merit. It is now fairly well settled that merit and merit alone can be the basis of admission among candidates belonging to any given category. In service candidates belong to one category. Their inter-se merit cannot be overlooked only to promote seniority which has no place in the scheme of MCI Regulations."

The Bench comprising of Justice T S Thakur and Justice R. Banumathi was considering  batch of appeals arising out of a judgment and order dated 30th  March 2011 passed by the High Court of Kerala at Ernakulam in Writ Petitions No.1014 of 2009 and 2610 of 2010 filed by the respondents which had been allowed by the High Court with the direction that selection of in-service medical officers for post-graduate medical education  under  Section 5(4) of the Kerala Medical Officers’ Admission to Postgraduate Courses under Service Quota Act, 2008 (Kerala Act 29 of 2008) shall be made strictly on the basis of inter se seniority of the candidates who have taken the common entrance test for post-graduate medical education and have obtained the minimum eligibility bench mark in that test in terms of the Regulations framed by the Medical Council of India.
The Background facts:  Forty percent of the seats available in the State of Kerala for post-graduate medical admission are reserved for in-service doctors serving in the Health Service Department, Medical College lecturers and doctors serving in theEmployees State Insurance Department of the State. As per the practice prevalent before the enactment of the impugned legislation admissions against such reserved seats were made on the basis of seniority of in-service candidates in each category. Post Graduate Medical Education Regulations of Medical Council of India, 2000, however, made it mandatory for all candidates seeking admission to post-graduate medical courses to appear for a common entrance examination. The Regulations, inter-alia, provide that candidates who appears in the common entrance examination and secure 50% in the case of general category candidates and 40% in the case of SC/ST candidates alone shall be qualified for such admission. Consequently, even in-service candidates had to appear and qualify in the common entrance examination.
Considering the hardships faced by in-service candidates who were working around the clock for the benefit of the public even in remote rural areas and were consequently finding it difficult to regualrly update their knowledge and compete with the general merit candidates so as to score the required 50% marks in the common entrance examination and to qualify for admission to any postgraduate course, the Government decided to enact the Kerala Medical Officers’ Admission to Postgraduate Courses under Service Quota Act, 2008 (Kerala Act 29 of 2008) to overcome the difficulties faced by in-service candidates in the matter of getting admission to post-graduate courses.
Section 3 of the said Act2 (Act No.29 of 2008) provided that selection of medical officers to the postgraduate courses under the service quota was to be made by a Selection Committee called the Post Graduate Course Medical Selection Committee constituted under Section 4 of the said Act. Section 5 of the Act empowered the Government to set apart seats not exceeding 40% of the total seats available in the State quota for any academic year for selection of medical officers under ‘service quota’ for admission to post-graduate medical courses in medical colleges of the State. Sub-section (2) of Section 5 provided that the academic qualifications for admission to the postgraduate courses shall be an MBBS degree with a minimum of 50% marks besides other qualifications that may be prescribed. Sub-section (4) of Section 5 required the Postgraduate Selection Committee to finalise the selection list directly based on the seniority of the in-service medical officers and following such other criteria as may be prescribed. Section 6 provided for grant of weightage for ‘rural area service’ or ‘difficult rural area service’ as the case may be, in the matter of selection of the candidates for admission. Sections 3, 4, 5 and 6 to the extent they are relevant may be re-produced at this stage: 
Aggrieved by the above legislation, Writ Petitions No.1014 of 2009 and 2610 of 2010 were filed by the respondents challenging the constitutional validity of Section 5(4) of the Act in so far as it provided that ‘admission to postgraduate in-service quota shall be only on the basis of seniority’.
Arguments advanced: The primary ground on which the challenge to the validity of the legislation was mounted by the writ petitioners was that the State legislature could not enact a law that would make selection for admission to the post-graduate courses dependent solely on the seniority of the in-service candidates without prescribing the minimum conditions of eligibility for the candidates concerned. Competence of the State Legislature to enact Section 5(4) of the impugned Legislation was also called in question on the ground that the said piece of legislation violated the regulations framed by the Medical Council of India the authority competent to do so under the Medical Council of India Act, 1956. It was argued that the Post-Graduate Medical Education Regulations, 2000 provided the minimum requirements that all the candidates have to fulfil. Inasmuch as the State enactment contrary to the said regulation and requirement postulates that selection of candidates shall be made only on the basis of seniority it was beyond the legislative competence of the Kerala State Legislature. The Indian Medical Council Act and the MCI Regulations framed under the same were, argued the writ petitioners-respondents herein, referable only to Entry 66 of List I of Seventh Schedule. Any legislation enacted by the State Legislature in exercise of its power under Entry 25 in List III was subject to any law to the contrary passed by the Parliament in exercise of its power under Entry 66 of List I. That the State Act was reserved for consideration of the President and that it has received the assent of His Excellency in terms of Article 254(2) of the Constitution did not save the legislation from the vice of legislative incompetence.
The State of Kerala contested the petitions and, inter alia, argued that the State enactment was in pith and substance different from the Indian Medical Council Act and the MCI Regulations. The State attempted to justify the legislation under Entry 25 of List III and argued that it does not in any manner conflict with Entry 66 of List I. It was argued that the dominant purpose of the legislation under challenge ought to be seen, and that purpose did not, according to the State, in any way, impinge upon the Central legislation so as to call for any interference by the Court.
On behalf of the in-service doctors an attempt was made to justify the enactment on the ground that, but, for a provision permitting a quota for service aspirants for admission to post-graduate courses it would be difficult to compete with fresh graduates who may be academically better off than candidates who have since long given up their studies and devoted themselves entirely to the service of the people at large some of them inhabiting in remote and difficult areas of the State.
The Medical Council of India which was arrayed as a respondent in the writ petitions, however, supported the case of the writ-petitioners to point out that the MCI Regulations categorically postulate that students for post-graduate course can be selected only on the basis of their inter se academic merit. Any other method of selection is, therefore, by necessary implication forbidden. Inasmuch as the State Legislation has attempted to introduce another method of selection which has the effect of subverting the MCI Regulations the impugned enactment was bad.
Judgment of the High Court of Kerala: The High Court of Kerala by the judgment and order impugned in the appeals before the Apex Court, agreed in principle that admission to post-graduate courses can be made only on the basis of inter se seniority provided the candidates appear in the common entrance examination and qualify. Relying upon the decisions of this Court in Dr. Preeti Srivastava & anr. v. State of M.P. & ors. (1999) 7 SCC 120 and State of M.P. & Ors. v. Gopal D. Tirthani & Ors. (2003) 7 SCC 83, the High Court held that the prescription of an entrance examination with minimum eligibility marks to be secured in the entrance test for post-graduate course is within the field covered by Entry 66 of List I and that the State Legislature cannot, by reference to Entry 25 of List III, make any law that may have the effect of encroaching upon the field occupied by Entry 66 of List I. The High Court observed: 
“The principles of law emanating from the above include that the prescription as to the requirement of an entrance examination with a minimum eligibility bench mark to be acquired in that entrance test for post graduate medical education is within the field covered by Entry 66 in List I and the competence of the State Legislature to make a law with reference to Entry 25 in List III would not enable it to make any such law encroaching on the field occupied by Entry 66 in List I. The MCI Regulations framed under Section 33 of the IMC Act is insulated from any contradiction by any State legislation. Therefore, the State cannot make a law doing away with the requirement, for in-service candidates, to participate in the common entrance test for admission to postgraduate medical courses and obtaining the minimum eligibility requirement prescribed by the MCI in the Regulations.” 
The High Court then held that inasmuch as Section 5(4) of the impugned enactment provides for the preparation of a select list of in-service medical officers based on seniority, such selection shall be made from among in-service medical officers only who have appeared in the common entrance test of post-graduate medical education and obtained the minimum eligibility bench mark in that test in terms of the MCI Regulations. The High Court held: 
“The conclusion is that the provision in Section 5(4) of the State Act that the select list of in-service medical officers for postgraduate medical education shall be strictly on the basis of seniority is subject to the requirement that such selection can be made only from among those in-service medical officers who have undergone the common entrance test for postgraduate medical education and have obtained the minimum eligibility bench mark in that test in terms of the MCI Regulations. It is so declared. These writ petitions are allowed to that extent.” 
The appeals before the Apex Court assailed the correctness of the above order and judgment of the Kerala High Court.
Judgment of the Supreme Court: Referring to Regulation 9 of the Regulations framed under the MCI Act, the Apex Court said that admissions to post-graduate medical courses have to be made only on the basis of academic merit of the candidates. The Court said that Regulation 9 is a complete code by itself inasmuch as it prescribes the basis for determining the eligibility of the candidates including the method to be adopted for determining the inter se merit which remains the only basis for such admissions. To the performance in the entrance test can be added weightage on account of rural service rendered by the candidates in the manner and to the extent indicated in the third proviso to Regulation 9.
The Apex Court said that the impugned legislation when it provides that in-service candidates seeking admission in the quota reserved for in-service doctors shall be granted such admission is not on the basis of one of the methodologies sanctioned by Rule 9(2) of the Rules framed by the Medical Council of India but on the basis of inter se seniority of such candidates and that the State was not competent to enact such a law.
Relying on the dictum laid down in Dr. Preeti Srivastava (supra), the Bench comprising of Justice T S Thakur and Justice R. Banumathi said that the Apex Court had held that MCI had framed regulations in exercise of the power conferred under Section 20 read with Section 33 of the Medical Council of India Act which covered post-graduate medical education. “These regulations are binding and the States cannot, in exercise of their power under Entry 25 of List III, make any rule which are in conflict with or adversely impinge upon the regulations made by the MCI. Since the standards laid down are in exercise of power conferred under Entry 66 of List I, the exercise of that power is exclusively within the domain of the union government. The State’s power to frame rules pertaining to education was in any case subject to any provision made in that connection by the union government.” 
Referring to the decision of the Apex Court in Gopal D. Tirthani case (supra), the Bench said there can be no relaxation for in-service candidates in so far as the common entrance test is concerned and MCI regulation could not be relaxed for that purpose. The argument that in-service candidates are detached from theoretical study and cannot, therefore, compete with other candidates was rejected by this Court.
The Apex Court said that in the light of the above pronouncements it would be futile to argue that the impugned legislation can hold the field even when it is in clear breach of the Medical Council of India’s Regulations. The Court thus held that the High Court was right in holding that inasmuch as the provisions of Section 5(4) of the impugned enactment provides a basis for selection of candidates different from the one stipulated by the MCI Regulations it was beyond the legislative competence of the State Legislature.
However the Bench did not agree with the reconciliatory approach adopted by the High Court when it directed that seniority of the in-service candidates will continue to play a role provided the candidates concerned have appeared in the common entrance test and secured the minimum percentage of marks stipulated by the Regulations. The High Court was, according to the Apex Court, not correct in making that declaration, because, even when in Gopal D. Tirthani’s case (supra) the Apex Court had allowed in-service candidates to be treated as a separate channel for admission to post-graduate course, within that category also, admission can be granted only on the basis of merit.
The Supreme Court finally held “A meritorious in-service candidate cannot be denied admission only because he has an eligible senior above him though lower in merit. It is now fairly well settled that merit and merit alone can be the basis of admission among candidates belonging to any given category. In service candidates belong to one category. Their inter-se merit cannot be overlooked only to promote seniority which has no place in the scheme of MCI Regulations. That does not mean that merit based admissions to in-service candidates cannot take into account the service rendered by such candidates in rural areas. Weightage for such service is permissible while determining the merit of the candidates in terms of the third proviso to Regulation 9 (supra). Suffice it to say that Regulation 9 remains as the only effective and permissible basis for granting admission to in-service candidates provisions of Section 5(4) of the impugned enactment notwithstanding. That being so, admissions can and ought to be made only on the basis of inter se merit of the candidates determined in terms of the said principle which gives no weightage to seniority simplicitor.”
Accordingly the Apex Court, having found the appeals bereft of merit, dismissed the same without any order as to costs.

___________
1. Civil Appeals No. 297-298 of 2015 (Arising out of S.L.P. (C) Nos.13121-13122 of 2011) Sudhir N. & Ors. V. State of Kerala & Ors.-decided on 12.01.2015
2. Sections 3 to 6 of the Kerala Medical Officers’ Admission to Postgraduate Courses under Service Quota Act, 2008 :
“3. Selection of Medical Officers for admission to Postgraduate Course Under the Service. Quota.- 
Notwithstanding anything contained in the Indian Medical Council Act, 1956 (Central Act 102 of 1956) or any rule or regulation issued thereunder or in any judgment, decree or order of any court or authority, the selection of Medical Officers for admission to Postgraduate Course of study in the State under the service quota shall be made only under the provisions of this Act.
4. Constitution of Post Graduate Course Medical Selection Committee – 
(1) The Government may constitute a Postgraduate Course Selection Committee for the purpose of selection of Medical Officers under the service quota with the following ex-officio members, namely:- 
(a) The Secretary to Government, Health and Family Welfare Department, Government of Kerala; 
(b) The Director of Medical Education; 
(c) The Director Health Services;
(d) The Director of Insurance Medical Services; 
(e) The Joint Director of Medical Education (M); 
(f) The Joint Director of Medical Education (G). 
(2) The Secretary to Government, Health and Family Welfare Department shall be the Chairman and the Director of Medical Education shall be the Convenor of the Committee. 
(3) The Committee shall discharge its functions in such manner as may be prescribed.
5. Procedure for selection. – 
(1) The Government may set apart seats not exceeding forty percent of the total seats available to state quota in an academic year, for selection of Medical Officers under service quota considering their service under the Government for admission to Post Graduate Medical Courses in the Medical Colleges of the State in such manner as may be prescribed. 
(2) The academic qualification for admission to the Post Graduate Course shall be M.B.B.S. degree with minimum fifty percent marks and the other qualifications shall be such as may be prescribed. 
(3) The details of eligibility for admission, the duration of courses, allotment, fee to be paid, reservations of seats and such other details shall be published every year in the prospectus before the commencement of admission. 
(4) The Postgraduate Course Selection Committee shall finalise the selection list strictly based on the seniority in service of the Medical Officers and following such other criteria as may be prescribed.
(5) The selection list finalised under subsection (4) shall be published by the Post Graduate Selection Committee for the information of the applicants.
6. Weightage for rural service. – 
Every Medical Officer who has ‘rural area service’ or ‘difficult rural area service’ as the case may be, in the State shall be given weightage in selection in such manner as may be prescribed.” 

Patent infringement : Delhi High Court restrains sale of generic drug Indacetrol by Indian pharma major Cipla till a decision on its compulsory licence application is taken



Delhi High Court, vide a judgment last week has upheld the patent infringement claim filed by Swiss drugmaker Novartis against Cipla, and granted an order of interim injunction restraining it from using Novartis' patent on respiratory drug Indacetrol (used for chronic obstructive pulmonary disease)

The Background: Novartis holds the patent for manufacture of the Indacaterol maleate salt as well as the manufacturing process for the drug, which is sold in India as an inhalation powder and inhaler under the trademark name of “Onbrez’ through Lupin since 2010.

In October last year, Cipla, India's fourth-largest drugmaker by revenue started manufacture and sale of Indacaterol powder and sale under the name “Unibrez”, citing urgent unmet need for the drug in India.

Novartis thereafter approached the Delhi High court to permanently restrain Cipla from manufacturing Indacaterol in any form and selling it in India. Novartis has also sought damages and payment for infringing the patented pharmaceutical product.

Cipla in its reply filed before the court had argued that the medicine sold by Novartis is too expensive and is sold only to government hospitals and is therefore not easily available to the public. Cipla also filed a representation before the ministry of commerce department of industrial policy and Promotion, to revoke the exclusive patent rights granted to Novartis, claiming that Novartis was not working the patent in India. Novartis argued that there was no obligation on the firm to manufacture the drug in India.

Judgment was reserved in the case by Justice Manmohan Desai on December 16, 2014.

The Judgment : In a 143-page long order, the Delhi High Court restrained Cipla from “using, manufacturing, importing, selling, offering for sale, exporting, directly or indirectly dealing in active pharmaceutical ingredient (API), pharmaceutical products, compund or formulation containing Indacaterol, specifically its Maleate set, namely Indacaterol maleate alone or in combination with any other compound or API or in any other form”, which may amount to an infringement of Novartis’ patent.


The Court said that statutory & monopoly rights of Novartis can’t be nullified until patent is held to be invalid, and that 'Public interest doctrine’ is an important consideration in patent cases, and Cipla should approach the appropriate forum while applying for compulsory licence application. Justice Desai also repelled the argument put forth by Cipla based on Article 21 of the Constitution, saying Article 21 cannot be pressed into service by an infringer seeking to justify the infringement of a valid patent.

The interim injunction has been granted till Cipla’s application for compulsory licensing of the drug is decided. The company has been allowed to sell its remaining stock. The Court further said that if such an application has indeed been filed by Cipla, the controller or the competent authority to decide the plea within six months from the filing of the application. 
 




Delhi High Court issues notice to Union Coal Ministry on Jindal Steel & Power Ltd.'s petition challenging change of end-use of coal blocks under Coal Ordinance and Ministry's Dec 18 order



The Delhi High Court on Monday sought to know the Centre’s response on a writ petition filed by Jindal Steel & Power Ltd. challenging a Coal Ministry order of December 18 and provisions of the Coal Mines (Special Provisions) Ordinance, 2014 "which allow change of end-use" of coal blocks in Chattisgarh and Odisha from sponge iron and steel to power.
Logo of Jindal Steel Power Ltd.
 Under the Coal Mines (Special Provisions) Ordinance, 2014, promulgated after the Supreme Court cancelled the coal block allocations, the end-use was changed with the provision for auction of blocks.

Senior advocates Kapil Sibal, Rajiv Nayar and Abhishek Manu Singhvi, appearing for JSPL, submitted that pursuant to the Coal Ordinance, the Coal Mines Rules were notified and under the same the ministry passed an order on December 18 changing end-use of their coal blocks from sponge iron and steel to power.

They contended that the December 18 order was passed arbitrarily and is in violation of the Ordinance as well as the Constitution.

JSPL contended that change of end-use has also resulted in making the company ineligible for participating in the ongoing auction process which is expected to culminate on February 14.

The company also alleged that while changing the end-use, captive power plants were also excluded from the power sector, hence, they are unable to bid for the blocks even for that.

Senior Counsels appearing for JSPL in the case said that the company has set up steel and sponge iron units in Odisha and Chhattisgarh for over Rs 24,000 crore and the entire investment would be "rendered fruitless" if they are unable to bid for the blocks which were earlier allocated to them and based on which the units were set up after obtaining all necessary environment and forest clearance.

During the proceedings, the ASG said that JSPL can purchase the tender document and submit it any day before February 14, 2015.

He also said there are other coal blocks available for JSPL, including those which have been put up for non-regulated end-use like steel and sponge iron.

Senior Advocate Mr. Kapil Sibal, however, was not in agreement with the ASG’s contention, saying that very few blocks have been put up for non-regulated end-use.

He also said that bidding for a far away block would not help them as they set up their units based on the Utkal and Gare Palma blocks in Odisha and Chhattisgarh respectively.

A Division Bench of the Delhi High Court comprising of Justice Badar Durrez Ahmed and Justice Sanjeev Sachdeva thereafter issued notice to the Coal Ministry seeking its response as to why and where end-use was changed, and posted the matter for hearing on Thursday, January 15, 2015. 


(Sonika Nair contributed in the reporting of this news story)