Illegal NOC Withdrawal Upheld: State's Authority Prevails Over Unauthorized Grant.
17 February 2025
Medical, Pharma & Healthcare >> Miscellaneous
The Supreme Court in the matter of Jagdish Chand Memorial Trust Vs State of Himachal Pradesh has upheld the withdrawal of a No Objection Certificate (NOC) for an Ayurvedic Medical College and Hospital, ruling that the initial grant was illegal and unauthorized. The Court found that the NOC was issued by a department without the required approval from the Council of Ministers, violating the state's Rules of Business.
The Court rejected arguments of promissory estoppel and violation of natural justice, stating that an illegal grant cannot create an indefeasible right and that a hearing would have been a futile exercise against a valid cabinet decision. The Court also dismissed claims that the appellant had significantly altered its position based on the NOC, noting the rapid sequence of events and the lack of substantial, irreversible changes.