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LAW AND CONSTITUTIONAL AFFAIRS - May 2022

May 2022

Oct 26, 2022

Fee Regulation in Private Medical Colleges: Supreme Court Issues Notice on NMC's Transfer Plea

The Supreme Court has issued notice on a petition filed by the National Medical Commission (NMC), seeking transfer of all petitions to either the Supreme Court or any one High Court, challenging the validity of its decision to stipulate the fee of 50 per cent seats in Private Medical Colleges and Deemed Universities at par with the fee of Government Medical Colleges in the respective States and Union Territories.
The Bench of Justice D.Y. Chandrachud and Justice Hima Kohli passed the order on October 21, noting that the transfer plea, the main petition and the connected matters were to be listed before the Bench on November 4.
On the last date of hearing, Justice Chandrachud had suggested Advocate Gaurav Sharma, appearing on behalf of NMC, to file a transfer petition so that the Apex Court could transfer all the matters in this regard to either itself or consolidate them and send to the Delhi High Court or any other High Court for disposal.
The NMC then filed the transfer petition, on which the notice was issued.

Oct 23, 2022

Supreme Court Comes Down Heavily upon Environmentalist seeking the Post of President

The Supreme Court came down upon an environmentalist who filed a petition seeking for appointment as the post of President of India by removing the current President Droupadi Murmu from her post.
A bench of Justices D.Y. Chandrachud and Justice Hima Kohli took a strong view of the plea and called it scurrilous and an abuse of the process of the court.
The Bench questioned as to what kind of scurrilous petitions are these? It also questioned as to how is this (filed under) Article 32 of the Constitution.
The bench has also directed the court registry for not entertaining such petitions in future.
The petitioner in his plea has alleged that he was not allowed to contest the recent Presidential polls.

Oct 22, 2022

PMLA: Supreme Court Dismisses Petition for Reconsidering Verdict

The Supreme Court of India dismissed the petition for reconsideration of the July 27 verdict of upholding the validity of provisions of the Prevention of Money Laundering Act.
A bench comprising the Chief Justice of India (CJI) U.U. Lalit and Justice Bela M. Trivedi dismissed the plea that challenged the Constitutional validity of Section 37 of the Act which stipulates the power of the Chairperson to transfer cases.
The CJI while speaking on the plea said it is misconceived. He further added that as soon as you have a problem with a provision you assail the act. It is not as if you face a trial. It is only a prima facie case.

Oct 21, 2022

Entities Involved in Trade Would Cease to be a Charitable Institution: SC

The Supreme Court (SC) ruled that any entity or institution involved in any trade or commerce under the guise of 'general public utility' will cease to be a 'charitable institution' and therefore, cannot claim tax exemption under the Income-Tax (I-T) Act.
Two key issues were heard by the Apex Court.
One scope of the expression 'general public utility' (deals with benefit to a section of the public) for claiming tax exemption as 'charitable institution'.
Two, scope of exemption to educational institutions claiming tax exemption as 'charitable institution'.
The expression 'charitable purpose' has been defined under certain clauses which include relief to the poor, for education and medical relief, preservation of the environment (including watersheds, forests and wildlife), preservation of monuments, and the advancement of any other object of public utility.
Many institutions doing trade/commerce used the 'general public utility' clause to gain exemption for profits on such trade/commerce since the meaning is ambiguous. The court has now clarified if any profit or margin is earned from such an activity, it shall cease to be a charitable activity.
This judgment could have wide-ranging ramifications since charitable institutions involved in any trade or commerce in the name of the said provision could come under its radar and would be denied the benefit of tax exemption under the I-T Act available to them.

Oct 20, 2022

Uttarakhand High Court Dismisses PIL Seeking Appointment of Judges

The Uttarakhand High Court dismissed a PIL seeking directions to appoint judges in the Uttarakhand High Court as per the sanctioned strength.
The PIL was filed by the Youth Bar Association of India.
The Division Bench of Chief Justice Vipin Sanghi and Justice Manoj Kumar Tiwari observed that it is for the Collegium, consisting of the Chief Justice and the two seniormost Judges of the High Court, to make the recommendations.
There is no reason to assume that the Collegium is not mindful of its duty, or that it would not perform its duty, as and when the occasion arises.

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