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 The appellant contended that the Essentiality Certificate had not been revoked and should transfer to them under the SARFAESI Act.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).
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.
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



