Case Note & Summary
The petitioners, six post graduate medical students of ESIPGI MSR, MGM Hospital, Parel, Mumbai, challenged the decision of the Employee State Insurance Corporation (ESIC) to close down post graduate courses at two institutes in Maharashtra, namely ESIPGI MSR, MGM Hospital, Parel and ESIPGI MSR, Andheri (East), Mumbai. The students had been admitted after successfully passing MBBS and the entrance examination. ESIC, through its Medical Commissioner, had established these institutes for rendering medical services and conducting medical courses. The decision to close the PG courses was taken by ESIC without considering the impact on the students who had already been admitted. The court found that the decision was arbitrary and violative of the students' right to education under Article 21 of the Constitution. The court held that the students had a legitimate expectation that the courses would continue until completion. The court quashed the decision to close the PG courses and directed ESIC to continue the courses for the benefit of the petitioners and other similarly situated students. The judgment was delivered by a division bench of Justices Anoop V. Mohta and K.R. Shriram, with the latter authoring the judgment.
Headnote
A) Constitutional Law - Right to Education - Arbitrariness - ESIC's decision to close PG courses at two Mumbai institutes, affecting students already admitted, was held arbitrary and violative of Article 21 - The court found that the decision was taken without considering the impact on students' careers and without affording them an opportunity of hearing - Held that the students had a legitimate expectation to complete their courses (Paras 1-13). B) Administrative Law - Legitimate Expectation - Closure of Educational Courses - Students who were admitted to PG medical courses had a legitimate expectation that the courses would continue until completion - The court held that the decision to close the courses mid-stream was unreasonable and could not be sustained (Paras 14-20). C) Medical Education - Post Graduate Courses - ESI Act, 1948 - The court directed ESIC to continue the PG courses at the two institutes for the benefit of the petitioners and other similarly situated students - The decision to close was quashed and set aside (Paras 21-25).
Issue of Consideration
Whether the decision of ESIC to close down post graduate medical courses at two institutes in Maharashtra, affecting students already admitted, is arbitrary and violative of their rights under Article 21 of the Constitution of India.
Final Decision
The court allowed the writ petitions, quashed the decision to close the PG courses, and directed ESIC to continue the courses for the benefit of the petitioners and other similarly situated students.
Law Points
- Arbitrariness
- Legitimate Expectation
- Right to Education
- Article 21
- Article 14
- ESI Act
- 1948



