ASSOCIATION OF MEDICAL SUPER SPECIALITY ASPIRANTS AND RESIDENTS Vs UNION OF INDIA
Bench: HON'BLE MR. JUSTICE L. NAGESWARA RAO, HON'BLE MR. JUSTICE HEMANT GUPTA
Judgment by: HON'BLE MR. JUSTICE L. NAGESWARA RAO
Case number: W.P.(C) No.-000376 / 2018
Diary number: 10415 / 2018
Advocates: HARSH PARASHAR Vs
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Reportable
IN THE SUPREME COURT OF INDIA CIVIL ORIGINAL JURISDICTION
WRIT PETITION (CIVIL) No . 376 of 2018
Association of Medical Super Speciality Aspirants and Residents & Ors. .... Appellant (s)
Versus
Union of India & Others ….Respondent (s)
W I T H
Writ Petition (Civil) No . 946 OF 2018 Civil Appeal No. 6379 of 2019
Arising out of SLP (Civil) No. 2387 of 2019 Civil Appeal No. 6380 of 2019
Arising out of SLP (Civil) No. 1116 of 2019 Civil Appeal No. 6381 of 2019
Arising out of SLP (Civil) No. 10 of 2019 Civil Appeal No. 6382 of 2019
Arising out of SLP (Civil) No. 10007 of 2019 Civil Appeal No 6383 -6385 of 2019
Arising out of SLP (Civil) Nos.16814-16816 of 2019 (Diary No. 19100 OF 2019)
Civil Appeal No.6386 of 2019 Arising out of SLP (Civil) No. 15688 of 2019
J U D G M E N T
L. NAGESWARA RAO, J.
Leave granted.
1. The controversy in these cases pertains to the compulsory
bonds to be executed for admission to post-graduate medical
1
courses and super speciality courses. The Association of
Medical Super Speciality Aspirants and Residents has filed Writ
Petition (Civil) No.376 of 2018 seeking a writ of mandamus for
quashing the compulsory bond conditions, as imposed in the
super speciality courses by the States of Andhra Pradesh, Goa,
Gujarat, Himachal Pradesh, Karnataka, Kerala, Maharashtra,
Orissa, Rajasthan, Tamil Nadu, Telangana and West Bengal
respectively. A further direction is sought for returning the
original mark-sheets, certificates and other documents retained
by the respective State authorities after the completion of the
concerned speciality courses.
2. Writ Petition (Civil) No.946 of 2018 is filed challenging the
Notification dated 10.06.2014 issued by the Government of
West Bengal by which every post-graduate trainee was directed
to execute an Indemnity Bond to serve the State Government
for a period of three years after successful completion of post-
doctoral/MD/MS course and for a period of two years after
successful completion of the PG Diploma course. If the trainees
fail to serve the State Government as mentioned above, they
shall be liable to recompense the State Government a penalty
amount of Rs.10 Lakhs for each defaulting year. The Appellants
seek release of original documents without insisting on the
2
payment of Rs.30 Lakhs as envisaged by the Notification dated
10.06.2014.
3. Notifications issued by the Department of Health and
Family Welfare, Government of West Bengal imposing the
condition of execution of compulsory bond at the time of
admission to post-graduate courses and super speciality courses
were challenged in the High Court of Calcutta. Notification
dated 31.07.2013 which was assailed in the High Court required
the Appellant-doctors to work in the Multi-Speciality/ Super
Speciality Hospitals, Secondary and Tertiary Level Hospitals in
West Bengal for a period of one year after completion of their
post-graduate and post-doctoral education in State Medical
Teaching Institutions in West Bengal. Execution of bond at the
time of admission to post-graduate courses and super Speciality
courses, providing that they shall serve the State Government
for a period of one year on successful completion of the courses,
failing which they will be liable to recompense the State
Government a penalty amount of Rs.10 Lakhs, was made
compulsory. Partially modifying the Notification dated
31.07.2013, the Government of West Bengal issued a
Notification on 10.06.2014 by which the condition pertaining to
one year service was increased to two years. The compensation
in case of failure by the Doctors to serve in the State was 3
enhanced to Rs. 30 Lakhs. 139 Doctors who have acquired
Degree of Bachelor of Medicine and Bachelor of Surgery from
various universities in the country challenged the
aforementioned Notifications in the High Court. The learned
Single Judge of the Calcutta High Court by a judgment dated
03.11.2017 upheld the Notification dated 31.07.2013. However,
the Notification dated 10.09.2014 was held to be arbitrary and
unreasonable. Aggrieved by the judgment of the learned Single
Judge, the State of West Bengal filed an appeal before the
Division Bench of the High Court. Some of the Writ Petitioners
who were aggrieved by the judgment insofar as it related to the
Notification dated 31.07.2013 being upheld also filed appeals.
By the impugned judgment, a Division Bench of the Calcutta
High Court held that both the Notifications dated 31.07.2013
and 10.09.2014 are neither unreasonable nor arbitrary. The
Division Bench set aside the judgment of the learned Single
Judge insofar as it related to the Notification dated 10.09.2014
being quashed. The points urged before the High Court of
Calcutta and the findings recorded therein shall be dealt with
later.
4. The Appellants seeking admission to post-graduate
courses in Armed Forces Medical College, Pune were required to
execute a similar bond to serve in the Armed Forces Medical 4
Services as Short Service Commission Officers for a period of
five years on completion of the post-graduate courses. In case
of failure to serve for five years, the Appellants were required to
recompense the college with Rs.25 Lakhs. The above condition
was included in the brochure for admission to Post-Graduate
Medical Courses for the year 2014-2015. A writ petition was
filed in 2017 by Appellants who were admitted in the post-
graduate courses in the year 2014-2015 challenging the validity
of Clause 12 of the Information Bulletin which required them to
serve for five years in the Armed Forces Medical Services. They
sought a further direction for return of their original documents
without insisting on compulsory service condition. The Writ
Petition was dismissed by a Division Bench of the Bombay High
Court by judgment dated 02.04.2019 with costs quantified at
Rs.1 Lakh per petitioner. Aggrieved by the said judgment, SLP
Nos.10007 and 2387 of 2019 have been filed.
5. We proceed to refer to the various contentions raised by
the Appellants before the High Courts and judgments of the
High Courts’:
Calcutta High Court:
As stated above, the Division Bench of the Calcutta High
Court was concerned with two Notifications dated 31.07.2013
5
and 10.09.2014 issued by the Government of West Bengal
imposing a condition of compulsory service in the State of West
Bengal for admission to post-graduate and super Speciality
courses in Government Medical Colleges in the State. It was
contended on behalf of the Appellants that they became
entitled for admission to post-graduate and super Speciality
courses in the government medical colleges in the State of West
Bengal on the basis of their merit in the All India Post Graduate
Medical Entrance Examination (AIPGMEE). According to them,
additional eligibility conditions cannot be introduced by the
State Government in respect of All India Quota candidates.
Imposition of a condition of compulsory service infringes their
fundamental rights under Articles 14, 19 and 21 of the
Constitution of India. In any case, introduction of compulsory
bonds can only be by way of legislation and not by an executive
order. They relied on a judgment of this Court in Harsh Pratap
Sisodia v. Union of India1 to buttress their submission relating
to the bar on the State in fixing addition eligibility criteria. In
this connection, they placed reliance on an order passed by this
Court in Anand Biji v. State of Kerala.2 They further
contended that the insistence of a condition to serve in the
State compulsorily would result in reservations being made by
1 (1999) 2 SCC 575 2 (2001) 6 SCC 665
6
the State, which would be contrary to the judgment of this Court
in Dr. Pradeep Jain v. Union of India.3 They further
submitted that the service bonds executed by the Appellants fall
foul of Section 27 of the Indian Contract Act, 1872. The
Notifications that were issued by the State Government were
also challenged on the ground of unconstitutionality as the State
Government lacked competence to issue such notifications. It
was argued that all matters pertaining to medical education are
covered by the Medical Council of India Act, 1956. As the field
was already occupied by a Union Legislation, the State
Government does not have the competence to legislate on the
same subject matter. In view of the lack of legislative
competence, the State Government does not have the power to
issue executive orders in respect of compulsory bonds.
On behalf of the State of West Bengal, it was argued that it
was well within the competence of the State Government to
issue executive instructions if the field was not occupied. The
judgment of this Court in Rai Sahib Ram Jawaya Kapur v.
State of Punjab4 and Bhishambar Dayal Chandra Mohan v.
State of Uttar Pradesh5 were cited in support of the said
proposition. It was submitted by the State before the Division
3 (1984) 3 SCC 654 4 (1955) 2 SCR 225 5 (1982) 1 SCC 39
7
Bench that the decisions of this Court in Harsh Pratap Sisodia
(supra) and Anand Biji (supra) did not relate to the compulsory
bonds and hence, were not applicable to the facts of the case.
The stand of the State was that none of the fundamental rights
under Articles 14, 19 and 21 were violated as the Appellants
chose to be admitted in government colleges in the State of
West Bengal without any protest or demur, and they cannot be
permitted to assail the conditions on their admissions at the fag
end of their courses.
The following issues were framed for consideration by the
Division Bench:
“(i) Could the State Government have introduced the bond system by issuing the notifications which are under challenge in the present proceeding or was legislation necessary for that purpose?
(ii) Do the notifications impinge upon the freedom of the petitioners to practice any profession, or to carry on any occupation, trade or business guaranteed under Art.19(1)(g) of the Constitution?
(iii) Were the writ petitioners aware of the bond system before opting for West Bengal as their academic destination for post graduate medical studies?
8
(iv) Is the bond system in restraint of a lawful profession, trade or business and is thus violative of Sec.27 of the Indian Contract Act?
(v) Is there any such infirmity in the judgment and order impugned before us as would warrant interference by this Court?”
The first issue was answered in favour of the State by the
Division Bench holding that the provisions of Article 166 (1) &
(2) were being complied with before the Notifications were
issued. The Division Bench held that the Notifications issued by
the State Government did not impinge on the freedom of the
Appellants to practice any profession or to carry on any
occupation, trade or business guaranteed by Article 19(1)(g) of
the Constitution of India. Article 162 of the Constitution refers
to the extent of the executive power of the State Government
and that power is not restricted only to matters on which
legislation has already been passed. The Division Bench
observed that the State Government has the right to fill the
vacuum which exists due to the absence of any legislation and
which can be filled by the executive instructions in the form of
circulars/notifications. The Division Bench was of the opinion
that there is no fundamental right to pursue post-graduate
medical education, especially in government colleges where
higher education is subsidized. The Division Bench concurred 9
with the findings of the learned Single Judge that the Appellants,
who secured admissions in post-graduate medical colleges after
taking an informed decision to receive education at a highly
subsidized rate, cannot be permitted to question the
compulsory medical service bonds. The point raised by the
Appellants about the disability of the State Governments in
introducing additional eligibility criteria was rejected by the
Division Bench on the ground that the judgments of this Court in
Harsh Pratap Sisodia (supra) and Anand Biji (supra) were
not applicable to the facts of this case. The Division Bench
stressed the point relating to the primacy of public health when
it comes in conflict with private interest. It relied upon a
judgment of this Court in Sayyed Ratanbhai Sayeed (D) thr.
LRs & ORs. V. Shirdi Nagar Panchayat & Anr.6 to hold that
the notion of public interest is synonymous with collective
welfare of the people and public institutions, and is generally
informed by the dictates of the public trust doctrine – res
communis (i.e. everyone is common). The Division Bench
rejected the point raised by the Appellants that the compulsory
bonds were in violation of Section 27 of the Contract Act. It was
held that the post-graduate medical courses and the service
bond were a package. The Division Bench sought support from
6 (2016) 4 SCC 631
10
the judgment of the High Court of Bombay in Dr. Vinod
Shankarlal Sharma & Ors. v. The State of Maharashtra &
Anr7. to uphold the constitutionality of the Government
Resolutions imposing service bond. On the basis of the above
findings, the Division Bench upheld the Notifications dated
31.07.2013 and 10.09.2014.
Karnataka High Court:
The Government of Karnataka insisted that the Appellants
who have completed post-graduate degrees/diploma courses in
government medical colleges should serve the Government for
one year. Sub-rule (7) of Rule 15 of the Karnataka Conduct of
Entrance Test for Selection and Admission to Postgraduate
Medical and Dental Degree and Diploma Courses Rules, 2006,
framed under Section 14 (1) of the Karnataka Educational
Institutions (Prohibition of Capitation Fee) Act, 1984, imposes a
penalty of Rs.50 Lakhs and Rs.25 Lakhs respectively for
Postgraduate Degree and Postgraduate Diploma students on
their failure to serve the Government on completion of their
respective courses. All the Writ Petitioners executed the
obligation bond at the time of their admission. On completion of
their courses, they filed a writ petition in the High Court
questioning the bonds on several grounds. The points raised by
7 2013 AIR Bom. 1
11
them relating to the undertaking being vitiated by coercion and
violation of Article 23 of the Constitution and other fundamental
rights have been answered against them. The submission of the
Appellants that they should be exempted from the bond
obligations as they were admitted from the All India Quota was
also rejected by the High Court.
Kerala High Court:
A Division Bench of the High Court of Kerala dealt with the
issue pertaining to compulsory bonds and held that there is no
restriction imposed on the medical students from practicing the
profession. The restriction was only regarding their choice of
place of practice for one year. After dealing with all the points
pertaining to restriction from trade or profession and the public
policy, Seshadri Naidu, J. speaking for the Court stated that
those Appellants who were benefited by subsidised medical
education must repay their debt/gratitude.
High Court of Judicature at Bombay :
Writ Petitions filed by the students of super speciality
courses were considered by a Division Bench of the High Court
of Judicature at Bombay. Imposition of a condition that the
Appellants should serve in the Government medical colleges for
a period of one year failing which they have to pay a penalty
12
was found to be neither arbitrary nor unreasonable. Dr. D.Y.
Chandrachud, J. (as he then was) was of the firm opinion that
the judgment of this Court in Dr. Pradeep Jain (supra) which
pertained to reservations on the basis of domicile status had no
connection with service bonds. The Division Bench of the
Bombay High Court held that the compulsory bond requiring
each Appellant to serve for one year is also not
disproportionate. It was observed in the said judgment that the
State has a legitimate interest in ensuring the students who
benefitted from the infrastructure created by it must contribute
back to the community by public service. The Division Bench
took note of the fact that post-graduate and super Speciality
doctors were being posted as Registrars and Senior Residents.
After examining the need for the Government to utilize the
services of the post-graduate and super Speciality doctors, the
Division Bench gave a direction that they should be allotted to
posts which are commensurate with their qualifications.
Gujarat High Court:
The learned Single Judge of the Gujarat High Court took a
view different from the one taken by Calcutta High Court, Kerala
High Court, Karnataka High Court and the Bombay High Court. 13
Execution of bonds by the doctors was a result of coercion as
per the judgment of the learned Single Judge of the Gujarat High
Court, who declared the bond agreement as unreasonable and
unconscionable. Ergo, the bond agreement was opposed to
public policy and violative of Article 14 of the Constitution. We
are informed by the learned counsel appearing for the State of
Gujarat that an appeal has been filed against the said judgment
which is pending consideration before a Division Bench of the
Gujarat High Court.
Pleadings
6. Having taken note of the judgments of the High Courts, it
is time to consider the submissions that are made before us.
Mr. Prashanto Chandra Sen, learned Senior Counsel appearing
for the Writ Petitioners in Writ Petition (Civil) No.376 of 2018
argued that the doctors who have completed the post-graduate
courses and super Speciality courses are national assets. Their
services should be utilized in the best possible manner in places
where there are facilities and they should not be wasted in rural
areas. Their presence in institutions at the national level would
be beneficial to the society apart from providing an opportunity
to them to hone their skills. He stated that additional conditions
in the nature of bonds cannot be imposed by the State
14
Government which would disturb the balance stipulated by the
Medical Council of India Regulations. He submitted that the
conditions imposed by the State Government are onerous and
he commended for our acceptance that a reasonable exit clause
should exist.
7. Mr. Krishnamohan Menon, learned counsel appearing for
the Appellants in SLP (Civil) No.2387 of 2019, SLP (C) No.10 of
2010 and SLP (C) No. 19100 of 2019 in the Appeals arising out
of the judgment of the Calcutta High Court questioned the
Notifications as being unconstitutional and violative of Articles
14, 19(1)(g) and 21 of the Constitution. He urged that the
notifications would not constitute “law” within the meaning of
Article 13 of the Constitution. He submitted that the Appellants
have freedom to carry on trade and profession guaranteed
under Article 19(1)(g) of the Constitution which can be
restricted only by a law made by the State Legislature in the
interest of the general public. Any restrictions to be placed on
the freedom to carry on trade and profession should be
reasonable. According to him, the bonds imposed by the
Notifications failed the test of reasonableness. He submitted
that the post-graduate and super Speciality Doctors are not
equipped to handle health needs in rural areas, and by not
utilizing the skills of these specialists, the Government would be
15
doing disservice to the society. He referred to instances in
which specialists in Cardiology, Pathology and Pediatrics were
asked to take care of the primary medical health care. He
voiced his concern for the need to balance the academic career
and personal incentives for Appellants with public interest. He
also complained of arbitrariness in imposition of bond
conditions. He dealt with the point of the Notifications suffering
from the vice of lack of jurisdiction on the part of the State
Government.
8. Mr. Huzefa Ahmadi, learned Senior Counsel appearing for
the Appellants in the Appeals arising out of SLP (C) No.10007 of
2019 contended that the condition imposed for rendering
compulsory service in the Army is violative of Articles 19(1)(g)
and 23 (1) read with Article 21 of the Constitution. The
compulsory bond is violative of Section 27 of the Indian Contract
Act, 1872 apart from being barred by Section 14 of the Specific
Relief Act, 1963. According to Mr. Ahmadi, insistence of
compulsory service in the Army for five years is ‘forced labour’
which is prohibited under Article 23 of the Constitution.
People’s Union for Democratic Rights v. Union of India8
was cited in support of the said proposition. He further asserted
that Article 23(2) is an exception to Article 23(1). Compulsory
8 (1982) 3 SCC 235
16
employment provided under Article 23(2) can be introduced
only by way of legislation and not by a mere executive
instruction. By referring to Section 14 of the Specific Relief Act,
Mr. Ahmadi submitted that a contract of personal service is not
enforceable. He also commended that there should be a
reasonable exit clause. Ms. Radhika Gautam, learned counsel
appearing for the Appellants in the Appeal arising out of SLP (C)
No. 15688 of 2019 adopted the submissions made by Mr.
Ahmadi and sought for the release of original documents which
were taken from the Appellants at the time of their admission to
post-graduate courses to enable them to participate in the
counselling for admissions into the super Speciality courses.
9. Mr. Rakesh Dwivedi, learned Senior Counsel appearing for
the State of West Bengal submitted that the executive power of
the State Government is co-extensive to the power of the State
Legislature to legislate, as medical education falls under Entry
25 of List III of the 7th Schedule to the Constitution. Mr. Dwivedi
posited that the State Government has a role to play in
admissions unless the field is completely occupied by a Central
Legislation. In support of the submission that the State has
always the power to supplement and not supplant the provisions
of a statute, he relied upon Ch. Tikaramji v. State of Uttar
17
Pradesh9 and Modern Dental College and Research
Centre v. State of Madhya Pradesh.10 According to Mr.
Dwivedi, the subject matter relating to compulsory bonds is not
a subject matter of any legislation made by the Parliament. He
further contended that in furtherance of the right to health
which falls under Article 21 read with Article 14 of the
Constitution, there is a duty cast on the State Government to
provide medical facilities. He sought support of the judgments
of this Court in Paschim Banga Khet Mazdoor Samity v.
State of West Bengal11, State of Punjab v. Ram Lubhaya
Bagga12 and Union of India v. Moolchand Khairati Ram
Trust.13 Mr. Dwivedi urged that the source from which the
doctors are selected for post-graduate courses and super
Speciality courses is not relevant to decide the validity of the
compulsory bonds on the touchstone of Article 14 of the
Constitution. No special status can be assigned to doctors who
are admitted in seats allotted to All India Quota as they lose
their birthmarks after admission to their colleges. He stated
that treating All India Quota students as a separate class can
result in unreasonable classification and hostile discrimination
against the State Quota students. Mr. Dwivedi argued that the
9 AIR 1966 SC 676. 10 (2016) 7 SCC 353 11 (1996) 4 SCC 37 ¶9 & 16 12 (1998) 4 SCC 117 ¶ 26, 27 & 35 13 (2018) 8 SCC 321
18
policy of the State Government is neither arbitrary nor
unreasonable. He submitted that an amount of Rs.23,93,784/-
is spent on each Doctor at the post-graduate level by the
Government of West Bengal and hence the requirement of the
penalty of Rs.10 Lakhs for each defaulting year is neither
excessive nor disproportionate. There is no fundamental right
to pursue post-graduate medical education for which reason no
complaint can be made by the Appellants for violation of Article
19(1)(g) of the Constitution. While dealing with the
submissions of infringement of Article 23(1) of the Constitution,
he submitted that imposition of compulsory service for public
purposes is permitted by Article 23(2) of the Constitution. He
referred to a Report of World Health Organisation (WHO)
released in 2010 which also recommended compulsory service
of health professionals in rural and remote areas. Compulsory
services varying from one to nine years are prevalent in about
70 countries. Utilizing the services of talented and skilled
doctors is in conformity with the National Health Policy14. Mr.
Dwivedi further submitted that the point pertaining to Section
14(1)(b) of the Specific Relief Act does not arise for our
consideration as the State Governments are not seeking specific
relief of enforcement. He asseverated that compulsory service 14 World Health Organization (2010). Increasing access to health workers in remote and rural areas through improved retention. Geneva: World Health Organization.
19
bond is a part of the integral package for providing highly
subsidized medical education at post-graduate level and that
retention of the documents to ensure compliance with the
conditions of the compulsory service bonds is permissible.
10. Mr. Atmaram Nadkarni, learned Additional Solicitor General
appearing for the State of Goa provided information relating to
the amounts spent on doctors receiving post-graduation
education in the State of Goa. The State of Goa spends an
amount of Rs.50 Lakhs for a student per annum for
specialization. The amount of fee that is charged from each
student is Rs.77,500/-. The students undergoing super
Speciality courses are paid a monthly stipend of Rs. 86,927/- for
the first year, Rs. 89,495/- for the second year and Rs. 92,191/-
for the third year. The doctors who receive highly subsidized
medical education are obligated to render public service and the
State has a legitimate right to insist on the doctors serving the
State for a short period of time. The bond condition in the State
of Goa is that doctors who receive education in Government
colleges should serve for three years in the State, in default of
which they are liable to pay Rs.10 Lakhs. He supported the
policy of the State Government being in public interest.
20
11. Mr. K.M. Nataraj, learned Additional Solicitor General for
the Union of India and the Armed Forces Medical College
requested us not to interfere with the judgment of the Bombay
High Court as the Appellants who were admitted to the post-
graduate courses after executing the bond cannot be permitted
to question the requirement of the compulsory bond on
completion of the course. He contended that the requirement of
compulsory service in the Army is in public interest. He further
submitted that the judgment in Harsh Pratap Sisodia (supra)
and the order passed in Anand S. Biji (supra) were not related
to the bond conditions and cannot be taken advantage of by the
Appellants. He also stated that the requirement of the bond to
serve for five years does not deserve any relaxation.
12. Dr. Manish Singhvi, learned Senior Counsel appearing for
the State of Rajasthan contended that there is no fundamental
right to receive higher education and the question of violation of
Article 19(1)(g) does not arise. He fairly submitted that the
executive instructions and notifications issued by the
Government necessitating the compulsory bond do not fall
within the expression “law” under Article 13 of the Constitution.
But, as there is no violation of any fundamental right, no fault
can be found with the notifications issued by the State
21
Government in exercise of their powers under Article 162 of the
Constitution. He argued that the beneficiaries of Government
funds form a different class and it is permissible for the State
Government to impose conditions for admission into
government colleges.
13. Ms. Deepanwita Priyanka, learned counsel appearing for
the State of Gujarat submitted that there are six colleges in the
State of Gujarat imparting education in super speciality courses.
In all, there are 122 seats out of which 76 seats are in the
government colleges and 46 seats in the private colleges. A
nominal fee of Rs.40,000/- is charged from the doctors who are
paid a stipend of Rs.72,000/-, Rs.75,000/- and Rs.80,000/- per
month for their first year, second year and third year courses
respectively. There is a high demand for super Speciality
doctors in the State of Gujarat in view of the large number of
patients in departments of Oncology, Cardiology and
Nephrology in the super Speciality hospitals. In view of the
health need of the patients and the acute shortage of super
specialists, the State Government decided to introduce the
compulsory bond. The super specialists are posted only in the
four super Speciality hospitals run by the Government.
22
14. Mr. Shibashish Misra, learned counsel appearing for the
State of Orissa brought to our notice that all the 45 seats in the
super Speciality courses in the State are filled up on the basis of
merit in the All India Counselling. The fee charged in the
Government colleges is Rs. 45,000/- per year and the stipend of
Rs.56,826/- is paid to the doctors undergoing super Speciality
courses. There is serious shortage of super Speciality doctors in
the State and the Government’s decision to introduce the bond
system is in public interest.
15. Mr. Balaji Srinivasan, learned Additional Advocate General
appearing for the State of Tamil Nadu stated that there are 334
super Speciality seats in 24 Government medical colleges run
by the State Government. The Government is charging only
Rs.30,000/- per annum from the doctors undergoing super
Speciality courses. An amount of Rs.21 Lakhs is spent on each
post-graduate student by the Government. Earlier, the bond
required super specialists to serve for 10 years in the State and
pay Rs.2 Crores in default. The State reviewed the policy and
reduced the bond amount to Rs.50 Lakhs. The period of service
to be rendered by the doctors who have undergone training in
Super Speciality courses has been reduced to two years from
ten years. It is also brought to our notice that about 217
candidates have violated the bond conditions. 23
Analysis:
16. The main points that require consideration are:
I. Jurisdiction of the State Government, II. Violation of Fundamental Rights, III. Contract of Personal Service, and
IV. Restraint on Profession.
I. Jurisdiction of the State Government:
17. Entry 66 of List I of the 7th Schedule to the Constitution
refers to coordination and determination of standards in
institutions for higher education or research and scientific and
technical institutions. Entry 25 of List III of the 7th Schedule
deals with education, including technical education, medical
education and universities, subject to the provisions of entries
63, 64, 65 and 66 of List I. Legislations can be made by the
State Legislature relating to medical education subject to the
legislation made by the Parliament. The Medical Council of India
Act governs the field of medical education in this country.
Admittedly, there is no provision in the Medical Council of India
Act touching upon the subject matter of compulsory bonds.
Therefore, the States are free to legislate on the subject matter
of medical bonds. Executive authority of the State Government
24
is co-extensive with that of the legislative power of the State
Legislature. Even in the absence of any legislation, the State
Government has the competence to issue executive orders
under Article 162 of the Constitution on matters over which the
State legislature has the power to legislate. The Notifications
issued by the State Governments imposing a condition of
execution of compulsory bonds at the time of admission to post-
graduate courses and super Speciality courses cannot be said to
be vitiated due to lack of authority or competence. The field of
bonds requiring compulsory employment is not covered by any
Central Legislation. Therefore, the submissions made on behalf
of the Appellants that the States lacked competence to issue
the notifications as the field is occupied are rejected.
II. Violation of Fundamental Rights:
Article 14 :
A. Arbitrariness
18. The Appellants are aggrieved by the decision of the State
Governments imposing conditions for their admission in the
post-graduate courses and super Speciality courses. According
to them, the State Governments have understood the decision
of this Court in Harsh Pratap Sisodia (supra) to be a restraint
on the exercise of their power in matters relating to eligibility
criteria for admission to medical course. Suddenly, the 25
introduction of the compulsory bonds after 15 years of the
judgment in Harsh Pratap Sisodia (supra) is the result of
decision taken by the State Governments which is dubbed by
the Appellants as arbitrary. This Court in Harsh Pratap
Sisodia (supra) was concerned with the additional eligibility
criteria being introduced by the State Governments for the 15%
All India Quota students. The decision taken by the State
Governments to impose a condition of compulsory bond for
admission to post-graduate courses and super Speciality is on
the basis of relevant material. Huge infrastructure has to be
developed and maintained for running medical colleges with
post-graduate and super Speciality courses. The amount of fees
charged from the students is meagre in comparison to the
private medical colleges. Reasonable stipend has to be paid to
the doctors. Above all, the State Governments have taken into
account the need to provide health care to the people and the
scarcity of super specialists in their States. Consequently, a
policy decision taken by the State Governments to utilize the
services of doctors who were beneficiaries of Government
assistance to complete their education cannot be termed
arbitrary.
B. Reasonableness
26
19. Reasonableness is a ground that pervades through the
submissions made by the counsel on both sides. In the State of
West Bengal, the requirement of a compulsory bond was initially
a service of one year in the State in default of Rs.10 Lakhs was
to be paid. This was enhanced to three years and Rs.30 Lakhs
by a Notification dated 09.10.2014. In the State of Tamil Nadu,
the bond condition was that a doctor has to serve for ten years
in the State and in default of which, the doctor was to pay Rs.2
Crores. This was reduced to two years and Rs.50 Lakhs. The
Armed Forces Medical College imposes a condition of five years
compulsory service in the Army for post-graduate and super
Speciality doctors who prosecuted their study in the college.
They have an option of not serving for five years by
recompensing the Government by paying Rs.25 Lakhs. The
main contention of the counsel appearing for the Appellants is
that the condition of a long period of service that is imposed is
unreasonable. The basis for the submission is that they have
already served the society by working in Government hospitals
while undergoing their course. Further conditions imposed on
them would impede the progress of their careers. Restrictions
placed on their choice of place of work are also unreasonable
according to them. An alternate submission made by the
counsel appearing for the Appellants is that the imposition of
27
the condition of compulsory bond should be reasonable and the
exit clause should be relaxed. Notifications issued by the State
Governments imposing a condition of compulsory service and a
default clause are per se not unreasonable. However, we are in
agreement with the learned counsel for the doctors that the
period of compulsory service and the exit should be reasonable.
The State Governments and the Armed Forces Medical College
are directed to consider imposing the condition of compulsory
service period of two years in default of which the Doctors shall
recompense the Government by paying Rs. 20 Lakhs.
Article 19:
20. According to the Appellants, the right to carry on their
profession which is guaranteed by Article 19(1)(g) is violated by
the compulsory bonds. They contend that the compulsory
bonds place a restriction on their right to carry on their
profession on completion of their course. It is also submitted
that any restriction on their right to carry on their profession by
the State Government can be made only by a “law” as per
Article 19(6) of the Constitution. Consequently, the Notifications
that were issued by the State Governments fall foul of Article
19(1)(g). The compulsory bond executed by the Appellants is at
the time of their admissions into post-graduate and super
Speciality courses. Conditions imposed for admission to a
28
medical college will not directly violate the right of an individual
to carry on his profession. The right to carry on the profession
would start on the completion of the course. At the outset,
there is no doubt that no right inheres in an individual to receive
higher education. Violation of a right guaranteed under Article
19(1)(g) does not arise in a case pertaining to admission to a
college. There is no doubt, that the condition that is imposed
has a connection with the professional activity of a doctor on
completion of the course. However, the Appellants have,
without any protest, accepted the admissions and executed the
compulsory bonds. Execution of bonds is part of a composite
package. We are in agreement with the judgment of the
Calcutta High Court that the Appellants have not been able to
succeed in their attempt of assailing the Notifications for being
violative of Article 19(1)(g) of the Constitution. We uphold the
said finding of the Division Bench.
Article 21
21. The Appellants contended before the Calcutta High Court
that their liberty is curtailed by the compulsory bonds. The
scope of liberty which has been enhanced by this Court includes
personal autonomy to take decisions relating to their profession.
It was contended that the condition requiring them to
compulsorily work for a certain period of time with the 29
Government corrodes their liberty, affecting their right to life.
They relied upon judgments of this Court in Kharak Singh v.
State of U.P.15 and K.S. Puttaswamy v. Union of India16
while advancing this submission. Referring to a judgment of this
Court in Sayyed Ratanbhai Sayeed (supra), the High Court
held that private rights, when in conflict with public interest,
have to take a back seat. The High Court also recalled what
Marcus Tullius Cicero said about the good of the people being
the chief law.
22. Article 21 of the Constitution of India imposes an
obligation on the State to safeguard the right to life of every
person. Preservation of human life is thus of paramount
importance. The Government hospitals run by the State and the
Medical Officers employed therein are duty bound to extend
medical assistance for preserving human life. Failure on the
part of a Government hospital to provide timely medical
treatment to a person in need of such treatment results in
violation of his right guaranteed under Article 21 of the
Constitution.17 Therefore, in a welfare State it is the obligation
of the State to ensure the creation and the sustaining of
conditions congenial to good health.18
15 AIR 1963 SC 1295 16 (2017) 10 SCC 1 17 Paschim Banga Khet Mazdoor Samity v. State of W.B. (1996) 4 SCC 37 18 Vincent Panikurlangara v. Union of India (1987) 2 SCC 165
30
23. Article 47 of the Constitution reiterates the constitutional
obligation imposed on the State to improve public health. The
Directive Principle provides as follows:
“47. The State shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties and, in particular, the State shall endeavour to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health.”
24. In Akhil Bharatiya Soshit Karamchari Sangh v. Union
of India19 it was held that maintenance and improvement of
public health have to rank high as these are indispensable to
the very physical existence of the community and on the
betterment of these depends the building of the society of
which the Constitution makers envisaged. It was further
observed in the above judgment that attending to public health,
therefore, is of high priority- perhaps the one at the top.
25. It is for the State to secure health to its citizens as its
primary duty. No doubt the Government is rendering this
obligation by opening Government hospitals and health centers,
but in order to make it meaningful, it has to be within the reach
of its people, as far as possible, to reduce the queue of waiting
19 (1981) 1 SCC 246
31
lists, and it has to provide all facilities to employ best of talents
and tone up its administration to give effective contribution,
which is also the duty of the Government20.
26. Right to health is integral to the right to life. Government
has a constitutional obligation to provide health facilities21. The
fundamental right to life which is the most precious human right
and which forms the ark of all other rights must therefore be
interpreted in a broad and expansive spirit so as to invest it with
significance and vitality which may endure for years to come
and enhance the dignity of the individual and the worth of the
human person. The right to life enshrined in Article 21 cannot
be restricted to mere animal existence. It means something
much more than just physical survival. The right to life includes
the right to live with human dignity and all that goes along with
it, namely, the bare necessaries of life such as adequate
nutrition, clothing and shelter, and facilities for reading, writing
and expressing oneself in diverse forms, freely moving about
and mixing and commingling with fellow human beings. Every
act which offends against or impairs human dignity would
constitute deprivation pro tanto of this right to live and the
restriction would have to be in accordance with reasonable, fair
20 State of Punjab v. Ram Lubhaya Bagga (1998) 4 SCC 117 21 State of Punjab & Ors. v. Mohinder Singh Chawla (1997) 2 SCC 83
32
and just procedure established by law which stands the test of
other fundamental rights22.
27. To live is to live with dignity. The draftsmen of the
Constitution defined their vision of the society in which
constitutional values would be attained by emphasizing, among
other freedoms, liberty and dignity. So fundamental is dignity
that it permeates the core of the rights guaranteed to the
individual by Part III of the Constitution. Dignity is the core which
unites the fundamental rights because the fundamental rights
seek to achieve for each individual the dignity of existence23.
28. The State’s obligations are not satisfied solely by refraining
from imposing limitations on the right to human dignity. The
State must also take action to protect human dignity and to
facilitate its realization. The constitutional right to dignity is
intended to ensure human beings’ political and civil liberties as
well as their social and economic freedoms24.
29. Dr. A. K. Sikri. J. in K.S. Puttaswamy v. Union of India25
observed that the realisation of intrinsic worth of every human
being as a member of society is an indispensable condition, and
has been recognised as an important human right. Truly
speaking, this is directed towards the deprived, downtrodden 22 Francis Coralie Mullin v. Administrator, Union Territory of Delhi, (1981) 1 SCC 608 23 K.S. Puttaswamy (supra) 24 Aharon Barak, Human Dignity: the Constitutional Value and the Constitutional Right in Christopher McCrudden (ed.), Understanding Human Dignity, Proceedings of the British Academy, 192, pp. 361-80 at p. 367. 25 K.S. Puttaswamy v. Union of India, (2019) 10 SCC 1 [AADHAAR 5JB].
33
and the have-nots. He further held that the humanistic concept
of human dignity which is to be accorded to that particular
segment of the society has to be kept in mind. Their human
dignity is based on the socio-economic rights that are read into
the fundamental rights. The importance of the communitarian
approach along with the individualistic approach to human
dignity was addressed by Dr. A.K. Sikri, J. in the above judgment.
The learned Judge emphasised on the role of the State and
community in establishing collective goals and restrictions on
individual freedoms and rights on behalf of a certain idea of the
good life.
30. We accept the submission of Mr. Rakesh Dwivedi, learned
Senior Counsel for the State of West Bengal that the positive
obligation of the State to uphold the dignity of a larger section of
the society is to protect the rights conferred on them by Article
21 of the Constitution. The immediate need of the deprived
sections of the society to have proper health care was the
reason behind the policy decision of the Government. The
objective of the policy is to ensure that specialist health care is
extended to the have-nots also.
31. The next question that arises is whether there is a conflict
between the rights of the community and the rights of the
Appellants. As stated earlier, the right that is claimed by the
34
Appellants is to make an individual choice to carry on their
profession which might be hindered by the decision of the
Government. On the other hand, the basic idea behind the
Government’s decision is larger public interest. The judgment of
this Court in Sayyed Ratanbhai Sayeed (supra) relied upon by
the High Court is to the effect that private interest has to take a
back seat when pitted against public interest. In Mr. X v.
Hospital ‘Z’,26 Saghir Ahmad J speaking for this Court, held
that:
44….Moreover, where there is a clash of two Fundamental Rights, as in the instant case, namely, the appellant's right to privacy as part of right to life and Ms ‘Y’s right to lead a healthy life which is her Fundamental Right under Article 21, the right which would advance the public morality or public interest, would alone be enforced through the process of court, for the reason that moral considerations cannot be kept at bay and the Judges are not expected to sit as mute structures of clay in the hall known as the courtroom, but have to be sensitive, “in the sense that they must keep their fingers firmly upon the pulse of the accepted morality of the day”.” [emphasis supplied].
32. The Universal Declaration of Human Rights (UDHR)
recorded in the Preamble its recognition of the inherent
26 (1998) 8 SCC 296
35
dignity and of the equal and inalienable rights of all
members of the human family as the foundation of
freedom, justice and peace. The International Covenant on
Economic, Social and Cultural Rights (ICESCR) recognizes
the right of every person to the enjoyment of the highest
attainable standard of physical and mental health. ICESCR
mandates the States Parties to achieve full realization of
the aforementioned right through the creation of
conditions which would assure to all, medical service and
medical attention in the event of sickness, inter alia.
33. The above discussion leads us to the conclusion that
right to life guaranteed by Article 21 means right to life
with human dignity. Communitarian dignity has been
recognised by this Court. While balancing communitarian
dignity vis-à-vis the dignity of private individuals, the
scales must tilt in favour of communitarian dignity. The
laudable objective with which the State Governments have
introduced compulsory service bonds is to protect the
fundamental right of the deprived sections of the society
guaranteed to them under Article 21 of the Constitution of
India. The contention of the Appellants that their rights
guaranteed under Article 21 of the Constitution of India
have been violated is rejected.
36
Article 23
34. Article 23 reads as follows:
23. “(1) Traffic in human beings and begar and other similar forms of forced labour are prohibited and any contravention of this provision shall be an offence punishable in accordance with law. (2) Nothing in this article shall prevent the State from imposing compulsory service for public purposes, and in imposing such service the State shall not make any discrimination on grounds only of religion, race, caste or class or any of them.”
35. The submission of Mr. Huzefa Ahmadi, learned Senior
Counsel for the Appellants is that the conditions of the bond per
se amount to ‘forced labour’ and thus are violative of Article 23
(1) of the Constitution. Mr. Dwivedi expostulated the said
submission by referring to Article 23 (2) which confers power on
the State to impose compulsory service for public purpose.
Reliance was placed upon the Constituent Assembly Debates by
Mr. Dwivedi explaining the scope of compulsory employment for
public purpose under Article 23 (2) of the Constitution of India.
The Appellants who are required to work for a short period on a
decent stipend cannot complain that they are made to perform
‘forced labour’, especially after the Appellants have taken an
informed decision to avail the benefits of admission in
37
government medical colleges and received subsidized
education. By no means, the service rendered by the Appellants
in Government hospitals would fall under the expression of
‘forced labour’.
36. The 13th Amendment to the U.S. Constitution prohibits
slavery and involuntary servitude. The Supreme Court of the
United States held that compulsory employment for public
purpose does not amount to ‘involuntary servitude’ in
Robertson v. Baldwin27 and Butler v. Perry28. Article 23 (2)
of the Constitution enables the State Governments to require
the Appellants to do compulsory service in the Government
hospitals which is undoubtedly for the benefit of the public.
III. Contract of Personal Service
37. Section 14 of the Specific Relief Act, 1963 prohibits the
enforcement of contracts of personal service. The submission of
Mr. Ahmadi that the contract of personal service, in the form of a
compulsory bond, is not enforceable was dealt with by Mr.
Dwivedi, who argued that the State Governments do not intend
to enforce the contract in a court of law. It is trite law that
Courts do not ordinarily enforce performance of contracts of
personal character, such as a contract of employment29. 27 165 U.S. 275 (1897) [US Supreme Court] 28 (1916), 240 U.S. 328, 329. 29 Nandganj Sihori Sugar Co. Ltd. Rae Bareli & Anr. v. Badri Nath Dixit & Ors. (1991) 3 SCC 54
38
Reference can be made to the judgment of Jessel, M.R., in
Rigby v. Connol30 wherein he held that:
“The courts have never dreamt of enforcing
agreements strictly personal in their nature, whether
they are agreements of hiring and service, being the
common relation of master and servant ….”
38. Specific performance of contract for personal service is not
permissible under the Specific Relief Act, therefore, there cannot
be a decree for specific performance of a contract of personal
nature. None of the State Governments have made an attempt
to enforce the contracts entered into by them with the
Appellants through the service bonds. We are not in agreement
with the submission of Mr. Ahmadi that the compulsory bonds
fall foul of the Specific Relief Act.
IV. Restraint on Profession
39. The argument advanced on behalf of the Appellants that
compulsory bonds placed a restraint on their profession and
thus, would be contrary to Section 27 of the Indian Contract Act,
1872. The High Court of Calcutta repelled this submission by
holding that the compulsory bond does not amount to any
restraint on the professional activity of the Appellants. The High
Court observed that the Appellants are offered the job of 30 (1880) 14 Ch D 482, 487
39
Medical Officer in the State of West Bengal and that the
covenant in the compulsory bond operates only during the
period of such employment. Relying upon the dictum of Lord
Morris in Esso Petroleum v. Harper’s Garage (Stourport)
Ltd.,31 that “if A made a contract under which he willingly
agreed to serve B on reasonable terms for a few years and to
give his whole working time to B, it would be surprising indeed,
if it were sought to describe the contract as being in restraint of
trade; in fact, such a contract would very likely be for the
advancement of trade’, the High Court concluded that a contract
entered into by Appellants to serve the government for a few
years under reasonable terms cannot be described as one in
restraint of trade. We are in agreement with the findings
recorded by the High Court of Calcutta. Therefore, we are of the
considered opinion that the conditions of compulsory bonds for
admission to post-graduate and super-Speciality courses in
government medical colleges are not in violation of Section 27
of the Indian Contract Act, 1872.
40. The upshot of the above discussion is that the Writ
Petitions and the Appeals deserve to be dismissed.
Consequently, all the Doctors who have executed compulsory
bonds shall be bound by the conditions contained therein.
31 1967 1 All ER 699.
40
41. Taking note of the fact that certain State Governments
have rigid conditions in the compulsory bonds to be executed by
the Appellants and the felt need of uniformity in the matter
pertaining to the compulsory bonds, we suggest that suitable
steps be taken by the Union of India and the Medical Council of
India to have a uniform policy regarding the compulsory service
to be rendered by the Doctors who are trained in government
institutions.
42. The Writ Petitions and the Appeals are dismissed.
…................................J. [L. NAGESWARA RAO]
..............................J. [HEMANT GUPTA]
New Delhi, August 19, 2019
41