High Court of Karnataka Quashes ESIC Compulsory Service Bond for MBBS Graduates — Bond Violates Right to Practice Profession Under Article 19(1)(g) and Lacks Statutory Backing. The court held that the bond requiring MBBS graduates to serve ESIC for 5 years is an unreasonable restriction without statutory authority.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioners, MBBS graduates who completed their PG or MBBS from ESIC Medical College, were directed by the ESIC Corporation to execute a bond for compulsory service for 5 years. They challenged the order dated 03.07.2018 posting them for such service. The court examined whether the bond was enforceable. It noted that the bond lacked any statutory backing under the ESIC Act or any other law, and that the right to practice a profession under Article 19(1)(g) cannot be curtailed by an executive order without legislative sanction. The court quashed the impugned orders and held that the bond is not enforceable.

Headnote

A) Constitutional Law - Right to Practice Profession - Article 19(1)(g) of the Constitution of India - Compulsory Service Bond - The court held that the bond requiring MBBS graduates to serve ESIC for 5 years after completing PG or MBBS is an unreasonable restriction on the right to practice any profession, as it lacks statutory backing and is not saved by Article 19(6). (Paras 1-10)

B) Medical Education - Bond Enforceability - ESIC Act, 1948 - The bond was issued by ESIC without any enabling provision in the ESIC Act or regulations, and thus is void and unenforceable. (Paras 5-8)

C) Administrative Law - Ultra Vires - The order posting petitioners for compulsory service was quashed as being without authority of law. (Paras 9-10)

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Issue of Consideration

Whether the compulsory service bond requiring MBBS graduates to serve for 5 years in ESIC hospitals is enforceable and valid under law.

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Final Decision

The court quashed the impugned orders dated 03.07.2018 and held that the compulsory service bond is not enforceable.

Law Points

  • Right to practice profession
  • Article 19(1)(g)
  • compulsory service bond
  • lack of statutory authority
  • Medical Council Act
  • ESIC Act
  • bond not enforceable
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Case Details

2020 LawText (KAR) (02) 17

Writ Petition Nos. 29365-29368 of 2018 (EDN-RES) c/w Writ Petition Nos. 29817-29818/2018 & 29820-29822/2018, 29823-29828/2018, 29874/2018 & 29876-29879/2018, 30406-30411/2018 (EDN-RES)

2020-02-14

Krishna S. Dixit

Smt. Akkamahadevi Hiremath for petitioners; Smt. K S Anasuyadevi for R1; Sri. M R Shailendra for R2; Smt. Geethadevi M Papanna & Sri. M C Jayakirthi for R3 & R4; Smt. Ratna Shivayoginath for R4; Sri. N K Ramesh for R6; Sri. N Khetty for R7

Shabana Salahudheen, Varun Mohod, Poonam Nag, Arun Mohan

Union of India, Central Board of Secondary Education, Employees State Insurance Corporation/College Medical Division IV, The Employees State Insurance Corporation/College Medical College and PGIMSR, Karnataka Medical Council, Rajiv Gandhi University of Health and Sciences, Medical Council of India

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Nature of Litigation

Writ petitions under Article 227 of the Constitution of India challenging orders posting petitioners for compulsory service.

Remedy Sought

Quashing of orders dated 03.07.2018 posting petitioners for compulsory service for 5 years.

Filing Reason

Petitioners were directed to execute a bond for compulsory service after completing MBBS/PG from ESIC Medical College.

Issues

Whether the compulsory service bond is enforceable without statutory backing. Whether the bond violates the right to practice profession under Article 19(1)(g).

Submissions/Arguments

Petitioners argued that the bond lacks statutory authority and is an unreasonable restriction on their right to practice. Respondents argued that the bond is valid and enforceable as per the terms agreed.

Ratio Decidendi

A compulsory service bond that lacks statutory backing and imposes an unreasonable restriction on the right to practice a profession under Article 19(1)(g) is void and unenforceable.

Judgment Excerpts

The bond requiring MBBS graduates to serve for 5 years is an unreasonable restriction on the right to practice any profession. The order posting petitioners for compulsory service is quashed as being without authority of law.

Procedural History

Writ petitions filed under Article 227 challenging orders dated 03.07.2018; heard and disposed of on 14.02.2020.

Acts & Sections

  • Constitution of India: Article 19(1)(g), Article 19(6), Article 227
  • Employees' State Insurance Act, 1948:
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