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Doctors Willing to Pay Penalty Cannot be Compelled to Undergo Bond Service: HC

Himachal Pradesh High Court
Shimla: The Himachal Pradesh High Court has observed that doctors cannot be compelled to undergo bond service if they are willing to pay the bond penalty amount.
With this observation, the HC bench comprising Justice Sandeep Sharma granted relief to a professor who had received a job offer from another institute and therefore agreed to forfeit his bond by paying the entire bond money, i.e., Rs 60 lakh.
Accordingly, the HC bench issued directions to Indira Gandhi Medical College (IGMC), Shimla to issue a No Objection Certificate (NOC) to the concerned doctor, noting, "Since condition in the bond itself suggests that on account of non-execution of bond, person responsible for executing the bond shall be liable to pay the bond money (Rs.60,00,000/- in the case at hand) and person responsible, i.e. petitioner herein, is ready and willing to pay the bond money, in no eventuality, he can be compelled to work during the bond period."
After completing his MBBS from Rajendra Prasad Government Medical College, Tanda, in 2007, the petitioner doctor was appointed as a medical officer at the college on a contractual basis in 2009. Consequently, his services were regularised in 2011, after which, he pursued an MD Paediatrics at IGMC Shimla from 2013-2016.
The petitioner, after completing his MD, rejoined GMC Tanda in 2016 and in 2023, he left again to pursue a Doctorate of Medicine (DM) in Neonatology at the Postgraduate Institute of Medical Education and Research (PGI), Chandigarh. After completion of his service, the doctor resumed service and was appointed as an Assistant Professor in the Department of Paediatrics at IGMC, Shimla.
Meanwhile, on 06.11.2023, the All India Institute of Medical Sciences (AIIMS), Bilaspur issued an advertisement inviting applications for various faculty positions, including that of Assistant Professor. The petitioner applied for the post and was selected on 08.12.2023. After this, the petitioner was asked to submit a No Objection Certificate from his current employer, and accordingly, he contacted the college requesting the certificate. However, no response was received. Consequently, the petitioner filed a plea in the Himachal Pradesh High Court seeking a directive for the issuance of the NOC.
On the other hand, the State authorities argued that the petitioner was ineligible for an NOC, as he was a sponsored student and had signed a bond with the State on 04.07.2020 to serve IGMC Shimla, for seven years, after completing his Super Speciality Course. It was submitted that in case of failure to complete the service, the petitioner was liable to pay Rs 60 lakh.
The State further submitted that sponsorship was a special policy of the State Government to improve the Specialist/Super Speciality services in the State and further to provide the best possible medical facilities to the people in the interest of the patients. Therefore, they claimed that the NOC could not be claimed as a matter of right, and the prayer of the petitioner deserved to be rejected because the State was facing an acute shortage of Specialist Doctors.
While considering the matter, the HC bench observed that on 13.12.2023, the State was directed to issue a Provisional NOC to the petitioner, enabling him to participate in the selection process at AIIMS, Bilaspur. Even though the petitioner was selected, he was unable to join due to the pending final NOC.
Further, the bench took note of the submission by the petitioner's counsel stating that the petitioner was willing to deposit Rs 60 lakh as bond money, subject to his being given the final NOC, on acceptance of the technical resignation.
At this outset, the Court observed that
"Very purpose and object of furnishing bond is to ensure that Doctor, who has studied on Government expenditure, is made to work for State, after his/her having done MBBS Course, Medical Courses etc., but once bond condition itself provides that in the event of violation of bond, bond amount shall be payable by the executant of bond, it cannot be said that even after deposit of bond money, in terms of bond executed by the petitioner, he can be compelled to work for the bond period."
The Court also did not find any merit in the AAG's submission that on account of grant of NOC, public at large should suffer on account of paucity of Doctors.
"...this Court finds no force in the submission of learned Additional Advocate General that on account of grant of NOC, public at large shall suffer on account of paucity of Doctors, in view of the fact that pursuant to grant of NOC, if any, petitioner herein shall be joining AIIMS, Bilaspur, which is a premium institution, established by the Central Government. Since afore institution falls within the State of Himachal Pradesh, it cannot be said that interest of State would not be adequately protected on account of grant of NOC in favour of the petitioner, rather, this Court is of the view that on account of posting of the petitioner at AIIMS, Bilaspur, which admittedly has better facility and Department in the field of Neonatology, public of State of Himachal Pradesh will have better medical facilities," the bench observed.
Accordingly, the bench allowed the plea and directed the authorities to issue an NOC to the petitioner upon the deposit of Rs 60 lakh.
"Consequently, in view of aforesaid development, whereby petitioner is ready and willing to pay the entire bond money i.e. Rs.60,00,000/-, coupled with the fact that respondents are ready and willing to initiate the process for accepting the technical resignation of the petitioner, subject to deposit of Rs.60,00,000/-, this Court sees no justification to keep the present petition alive and accordingly the same is disposed of with the direction to the petitioner to deposit sum of Rs.60,00,000/- as bond money within a period of seven days’ with the respondent-department, which in-turn shall consider and decide the issue of technical resignation tendered by the petitioner within a period of three days’ thereafter, failing which, resignation rendered by the petitioner shall be deemed to have been accepted. Needless to say, after acceptance of technical resignation and receipt of sum of Rs.60,00,000/-, final N.O.C. shall be issued in favour of the petitioner, enabling him to submit the same to AIIMS, Bilaspur, while giving his joining," ordered the Court.
"Though there is nothing on record with regard to cancellation of offer of appointment given to the petitioner by AIIMS, Bilaspur, as Assistant Professor in the Department of Neonatology, but yet this Court taking note of the fact that present petition remained pending for considerable time, coupled with the fact that petitioner shall be tendering his technical resignation in the State of Himachal Pradesh, this Court hopes and trusts that no undue hurdle, if any, shall be created by respondent No.4 while accepting his joining, in terms of his selection made in the year 2023," it further observed.
To view the order, click on the link below:
https://medicaldialogues.in/pdf_upload/himachal-pradesh-hc-bond-285958.pdf
Barsha completed her Master's in English from the University of Burdwan, West Bengal in 2018. Having a knack for Journalism she joined Medical Dialogues back in 2020. She mainly covers news about medico legal cases, NMC/DCI updates, medical education issues including the latest updates about medical and dental colleges in India. She can be contacted at editorial@medicaldialogues.in.