Private Medical Colleges Liable to pay only Stipend, not Salary to In-service doctors: Madras HC

Published On 2025-07-16 04:00 GMT   |   Update On 2025-07-16 12:57 GMT

Madras High Court

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Chennai: A Division bench of the Madras High Court recently ruled that self-financing private medical colleges are liable to pay only stipend and not salary to the in-service government doctors, who pursue postgraduation and super-speciality courses in medicine.

While considering the issue concerning Karpaga Vinayaga Medical College at Muduranthakam in Chengalpet, a single judge bench had held the medical college liable to pay salary to the in-service doctors, as paid to the service doctors undergoing PG and super-speciality courses in government medical institutes.

However, when the college challenged the Single Judge-bench order before a Division bench of the High Court, the latter held,

"We are therefore unable to sustain the conclusion of the learned Single Judge to the effect that in-service Doctors pursuing their higher education in Private Medical Colleges would be entitled to payment of the salary that was paid to them by the Government, while they were in services of the Government as remuneration during the period when they pursue their higher education in Private Medical College Hospitals. We make it clear that while the liability to pay remuneration is on the Colleges, the extent of the liability will be only to pay the stipend as fixed by the Government for other students in Government Medical Colleges as well as Private Medical Colleges."

"In view of the above conclusion, the Writ Appeals will stand partly allowed. While affirming the liability of the colleges to pay the remuneration. We make it clear that it would be limited to the stipend fixed by the State of Tamil Nadu to non-service students, who pursue higher education in Private Medical Colleges in the State. In the circumstances, parties will bear their own costs. Consequently, the connected miscellaneous petitions are closed," ordered the HC bench comprising Justices R Subramanian and K Surender.

Government Medical Officers, who secure Post Graduate as well as Super Speciality seats in Government Medical Colleges and Raja Muthiah Medical College of Annamalai University, Chidambaram, are sanctioned a salary by the Government.

However, the Tamil Nadu Government had taken a policy decision of not paying any salary for the in-service doctors if they pursue Super-specialty courses in self-financing medical colleges, and accordingly, a Government Order was issued in 2020 in this regard.

Challenging this, pleas were filed before the High Court as the doctors contended in-service Doctors assigned to Private Medical Colleges should also be paid a salary as is being paid to in-service Doctors assigned to Government Medical Colleges.

One of the pleas was disposed of by a single-judge bench in 2022 and the Single-Judge bench held that G.O was discriminatory and ultra-vires the Constitution of India.

While quashing the G.O, the Court had directed the payment of salary along with attendant benefits to the petitioners, who were in-service candidates pursuing PG/Super speciality Courses in Private medical colleges. This order was challenged by the Government and the Government's appeal was allowed as the Court concluded that the colleges in which these in-service doctors were pursuing PG or Super Specialty Courses would have to pay the stipend/salary.

In another judgment, a Division bench of the HC had concluded that it was the liability of the colleges to pay stipend as per the regulations of the National Medical Commission (NMC).

Relying on the order, a single-judge bench of the HC held that the Private Medical Colleges should pay the salary to in-service Doctors, who have been assigned to the Colleges to pursue Post Graduate or Super Speciality Medical Education, as the Government pays salary to similarly placed persons who are admitted to Post Graduate/Super Speciality Courses in Government Medical College Hospitals.

Challenging this, the petitioner private medical college filed a plea before the Division bench. The college argued that under the PGMER, a medical college undoubtedly is liable to pay stipend to PG and Super Speciality students.

The state of Tamil Nadu has also fixed a particular amount as stipend and students, who are pursuing Post Graduate or Super Speciality Courses in Government Medical Colleges are also paid stipend. It is only the in-service Doctors, who are admitted to Post Graduate or Super Specialty Courses in Government Medical Colleges, who are paid a salary.

Therefore, the college argued that when the in-service doctors are allotted to Private Medical Colleges under the 50% State quota, the Colleges would only be liable to pay the stipend as fixed by the State Government and they cannot be mulcted with liability to pay salary.

While considering the matter, the Division bench observed that the actual question was whether the Private Medical Colleges could be made liable to pay salary to the in-service doctors, who are allotted to them by the Government.

Taking note of the mode of allotment followed by the State, the HC bench observed, "After the PG-NEET results are published, a single window counselling is done by the Directorate of Medical Education, wherein the candidates are allotted seats, according to the marks, they obtained in the qualifying examination, viz. the NEET. It is common knowledge that seats in Government Medical Colleges go to the meritorious students or students who secure higher rank in the NEET examination. Those who secure lower marks opt for Seats in Private Medical Colleges. Therefore, amongst the Post Graduate aspirants, who are in the Government service, the more meritorious get into Government Medical Colleges and the less meritorious get into Private Medical Colleges."

Noting that there was no dispute regarding the policy of the Government paying salary to the in-service doctors getting admitted to GMCs, the HC bench observed that the "difficulty comes only when the Government decides not to pay the in-service Doctors, who secure admission in Post Graduate courses in Private Medical Colleges. No doubt, the Government is entitled to fill up 50% seats in Post Graduate and Super Speciality Courses in Private Medical College Hospitals. Even out of that 50% a certain percentage goes to nonservice candidates."

"As far as the non-service candidates are concerned, there is no dispute and they are paid stipend as per Regulation 13.3 on par with the non-service candidates in Government Colleges. It is only those in-service candidates, who are admitted to Private Medical Colleges, who face this issue because of the decision of the Government, which is set out in Clause iii of paragraph 8 of G.O.Ms.No.46, not to sanction salaries to in-service candidates, who are admitted to Private Medical Colleges. Should the Private Medical Colleges be over burdened and directed to pay the same salary to in-service candidates allotted to it, in our considered opinion, the answer should be “NO”," opined the HC bench.

The Court observed that there could be no fault with the policy decision of the Government to pay salaries to in-service candidates when they pursue higher education in Government Hospitals, as it is more advantageous to the students.

However, the bench observed that at the same time, the private medical colleges are expected to comply with the regulations of the National Medical Commission.

"They cannot be mulcted with the further liability because of a policy decision taken by the State Government," held the Court.
"As we have already pointed out, it is the less meritorious candidates, who garner the seats in Private Medical Colleges. Therefore, they cannot be treated on par with the more meritorious candidates, who were able to secure admission in coveted Government Medical College Hospitals. A non-service candidate, who pursues Post Graduation in the Government Medical College is paid only stipend which is a fixed amount. He/She also does the same work as an in-service candidate, who is pursuing Post Graduate education," observed the bench.

The Court held that there was little or no difference between a non-service candidate or an in-service candidate, as both of them pursue the same education and do the same work. Therefore, there cannot be any difference between the two. It was observed that the previous decision of the HC could not be taken as a precedent on the issue of what the amount was that was payable by a Private Medical College. 

"In-service Doctors are not employees of the Private Medical College, whereas the in-service Doctors, who are pursuing Post Graduate Education in Government Medical Hospitals continue to be in the service of the Government. They cannot be treated as Doctors sent on deputation also, so the status of in-service Doctors in a Private Medical Institution is only that of a Post Graduate student and nothing more. If that be so, they can only be treated on par with the other Post Graduate students in the same Institution and they would be entitled to whatever remuneration that is being to paid other Post Graduate students in the same Institution...In view of Regulation 13.3 they would be entitled to the same stipend as is being paid to students in Government and other Private Medical Colleges in the State," held the High Court bench.

Therefore, the Court concluded in its order, 

(1) The liability to pay remuneration to in-service Doctors who pursue their higher education in Private Medical Colleges is on the College;

(2) The Colleges would be liable to pay only the stipend as fixed by the State to other students, both in Government and Private Medical College Hospitals.

(3) The in-service Doctors, who pursue their higher education in Private Medical College Hospitals, cannot claim salary from the Private Medical Colleges on par with their more meritorious counterparts, who pursue their higher education in Government Medical College Hospitals.

To view the order, click on the link below:

https://medicaldialogues.in/pdf_upload/private-medical-college-salary-to-in-service-doctors-294801.pdf

Also Read: Tamil Nadu urges Centre for permission to retain super speciality Seats for In-Service Doctors

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