State of Kerala vs Principal, KMCT Medical College 2025 INSC 518 - Kerala Medical Education -Corpus Fund
Kerala Medical Education (Regulation and Control of Admission to Private Medical Educational Institutions) Act, 2017 - Kerala HC judgment quashing Government Order (MS) No. 107/2018/H&FWD dated 06.06.2018 upheld - If the State seeks to establish a corpus fund or any other such mechanism to subsidize education for students from weaker backgrounds, in line with the vision enshrined in P. A. Inamdar v. State of Maharashtra (2005) 6 SCC 537, it may do so by enacting suitable Legislation to that effect (Para 39)- Section 8A of the 2017 Act does not permit the levy of any amount which will ultimately be retained by the State, regardless of its purpose. Similarly, Section 11 of the 2017 Act does not require the Committee to consider the creation of scholarships as a relevant factor to determine and approve the fee proposal submitted by a particular institution. Even assuming that the creation of a corpus fund for scholarships can be protected under the omnibus clause (g) of Section 11, whereunder the Committee can take into account “any other relevant factor” while determining the fee structure, such power cannot be exercised unless the Legislature authorizes the Committee to create a corpus fund or to prescribe its utility. (Para 25)
Legislation - A recourse to expropriatory measures cannot be sheltered under a piece of subordinate Legislation, save and except where the power is drawn from the competent Legislation. The power to levy tax or fee cannot be delegated to the Executive unless the principal Statute expressly authorizes to do so. (Para 25)
