Paying Stipend to PG Medical students is Statutory Obligation of Medical College: Madras HC

Chennai: Stating that the stipend paid to the postgraduate medical students cannot be adjusted against the fees payable by the students, the Madras High Court bench recently held that the stipend is a statutory right of a postgraduate medical student working in the institute during the course.

“The payment of stipend for the work done by the PG medical students is a statutory obligation of the medical college. At the same time, it is the right of the students to receive stipends,” the first bench of  Chief Justice Sanjay Vijaykumar Gangapurwala and Justice P D Audikesavalu observed.

This observation was made by the Court while considering the appeals made by two Puducherry-based private medical colleges- Mahatma Gandhi Medical College and Research Institute and Aarupadai Veedu Medical College Hospital.

Filing pleas before the HC bench, these two colleges had challenged the single judge order directing them to pay stipend to a group of PG medical students who had a dispute with the college regarding payment of fees.

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As per the latest media report by DT Next, the colleges approached the HC bench challenging the order issued by the single judge of the court in the year 2020. More than 15 students of the colleges had approached the HC bench seeking a direction upon the institutes to pay the stipend for their service as resident doctors from 2017-2018 to 2019-2020. Consequently, the single-judge bench ordered the colleges to pay the stipend.

The colleges informed the Court that those medicos had a dispute in fees payment as specified in the brochure. The counsels for these medical colleges contended that the students did not pay the fees, as prescribed in the brochure at the time of taking admission. This dispute was settled by the HC bench and the court had ordered the students for paying the stipend.

It was argued by the counsels for the colleges that if a PG medical student claims payment of stipend, he must be aware of the fact the the fee towards medical education is also paid. 

Referring to the Medical Council of India (MCI), Post-Graduate Medical Education Regulations, 2000, the counsels for the colleges argued that the entitlement of stipend is directly relatable to the payment of the full fee, they requested the HC Division bench to set aside the single judge order.

Times of India adds that the college pointed out that on June 16, 2017, a Division bench of HC had ordered that the fee payable shall be fixed by the Puducherry Fee Committee. However, this order was challenged and the Supreme Court stayed the order.

On the other hand, the counsel for the students submitted that the payment of fees by the students and the payment of stipends by the colleges are two distinct transactions and they cannot be called the same transaction.

It was argued by the counsel for the students that the students did not neglect the payment of fees as per the orders of the HC  and contended, "An interim arrangement was made and the students were paid as per the interim arrangement and then only, they were allowed to appear for examination."

The students' counsel further claimed that the students have paid the excess fees as prescribed by the Puducherry Fee Panel and argued that denying the students stipend after extracting the full-time service of the students for three years is unreasonable.

While considering the matter, the HC bench clarified that the question of equitable set-off while deciding the matter would arise if there was money recoverable by the colleges from the petitioners. 

The Court observed in the order that the medical colleges are duty-bound and they have a legal obligation to pay the stipend to the students and it would not be open to the college to deny the payment of the same to the students.

Therefore, dismissing the appeals by those two medical colleges, the Madras HC bench directed them to pay stipend within six weeks.

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