High Court Allows Appeal for Essentiality Certificate in Medical Education Case — Environmental Clearance Not a Precondition. The court found that the insistence on environmental compliance was not a requirement for the Essentiality Certificate under the applicable regulations.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The dispute arose from the appeal filed by the Chettinad Academy of Research and Education against an order of the learned Single Judge, which directed the appellant to obtain an Environmental Clearance Certificate and a certificate from the Tamil Nadu Pollution Control Board before considering the grant of an Essentiality Certificate. The appellant had purchased a property for establishing a medical college, which had previously been granted an Essentiality Certificate by the PRIST Trust. After acquiring the property, the appellant applied for approval to admit students but faced rejection due to the Essentiality Certificate being in the name of the previous owner. The appellant contended that the Essentiality Certificate had not been revoked and should transfer to them under the SARFAESI Act. The learned Single Judge's order was challenged on the grounds that the insistence on environmental certificates was not legally justified. The court found that the learned Single Judge had not adequately addressed the appellant's arguments regarding the Essentiality Certificate's validity and the irrelevance of environmental compliance at the initial application stage. The court emphasized that while environmental clearances are necessary for construction, they do not pertain to the Essentiality Certificate's issuance. Ultimately, the appeal was allowed, and the impugned order was set aside, directing the first respondent to process the application for the Essentiality Certificate without requiring the environmental certificates at this stage.

Headnote

A) Administrative Law - Essentiality Certificate - Requirement of Environmental Clearance - Establishment of Medical College Regulations, 1999 - The court held that the absence of an Environmental Clearance Certificate and Pollution Control Board certificate cannot be a ground to withhold the processing of an Essentiality Certificate, as these are not listed as requirements in Form 2 of the Regulations. The court directed that the application for the Essentiality Certificate be processed without insisting on these certificates at this stage (Paras 18-20).

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Issue of Consideration

Whether the requirement of obtaining an Environmental Clearance Certificate and a Pollution Control Board certificate is necessary for the grant of an Essentiality Certificate.

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Final Decision

The appeal was allowed, and the order of the learned Single Judge was set aside. The first respondent was directed to process the application for the Essentiality Certificate without requiring the Environmental Clearance Certificate or Pollution Control Board approval at this stage.

Law Points

  • Essentiality Certificate
  • Environmental Clearance
  • SARFAESI Act
  • National Medical Commission Act
  • Medical Council of India Regulations
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Case Details

2026 LawText (MAD) (09) 195

W.A.No.83 of 2026

2026-09-08

Sushrut Arvind Dharmadhikari, G. Arul Murugan

Mr. Nithyeash Natraj, Mr. Vaibhav Rangarajan Venkatesh, Mr. A. Abdul Hameed, Mr. L. Gokulraj, Ms. Subharanjani Ananth

Chettinad Academy of Research and Education

State of Tamil Nadu, Directorate of Medical Education, National Medical Commission

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Nature of Litigation

Appeal against the order of the learned Single Judge regarding the issuance of an Essentiality Certificate.

Remedy Sought

The appellant sought to set aside the order requiring environmental clearances as a precondition for the Essentiality Certificate.

Filing Reason

The appellant contended that the Essentiality Certificate granted to the previous owner had not been revoked and that environmental clearances were not required for the Essentiality Certificate.

Previous Decisions

The learned Single Judge had directed the appellant to obtain environmental clearances before considering the Essentiality Certificate.

Issues

Whether the Environmental Clearance Certificate is a prerequisite for the Essentiality Certificate. Whether the Essentiality Certificate granted to the previous owner is valid for the appellant.

Submissions/Arguments

The appellant argued that the Essentiality Certificate had not been revoked and should transfer under the SARFAESI Act. The respondents contended that the Essentiality Certificate is tied to the institution and cannot be transferred.

Ratio Decidendi

The court held that environmental compliance is not a prerequisite for the issuance of an Essentiality Certificate as per the applicable regulations, emphasizing the need for the State to act within its delegated authority.

Judgment Excerpts

The absence of an Environmental Clearance Certificate and Pollution Control Board certificate cannot be a ground to withhold the processing of an Essentiality Certificate. The court directed that the application for the Essentiality Certificate be processed without insisting on these certificates at this stage.

Procedural History

The appellant filed a writ petition which was disposed of by the learned Single Judge, leading to the present appeal against that order.

Acts & Sections

  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: Section 13(6)
  • National Medical Commission Act, 2019: Section 60(4)
  • Establishment of Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses and Assessment and Rating Regulations, 2023: Regulation 2(f), Regulation 9(a)
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