JUDGMENT

Dr. ARIJIT PASAYAT, J. - Leave granted.

2. The core question is whether the respondents prayer for discharge of bond executed to serve the nation for a period of five years on the ground of medical disability has been rightly accepted by the High Court?

3. The High Court by the impugned order held that in each case the respondents were required to deposit of rupees one lakh and on such deposit there was no further liability.

4. Factual position is almost undisputed.

5. In each case the appellant sought to invoke the bond agreement executed. The two respondents in Civil Appeal arising out of SLP (C) No. 580 of 2005 and the respondents in other Civil Appeal arising out of SLP (C) No. 25514/2004 had taken admission to the MBBS Degree Course of Armed Forces Medical College, Pune. At the time of admission they being minors their guardians had executed the bonds to the effect that after completion of MBBS course, the students in question shall serve the nation by working in the Armed Force for a specific period of time.

6. Clause 4 of the agreement dealt with a situation when a cadet shall be declared to have become Non Service Liability (in short `NSL) in the event of any of the three categories. It is provided that in such event Clauses 5 and 6 will be applicable. However, he or she can be permitted at the discretion of DGAFMS to continue her studies on payment of normal tuition fee at the rate in force at the time but the students have to move out of the hostel premises.

7. Clause 5 of the agreement states that in the event of a student being removed from the service liability for any reason, shall be liable to pay the amount calculated at a particular rate per annum from the date of admission to the College till the date of NSL subject to maximum together with interest on the said amount at rates in force then.

8. Clause 6 provided that student who is removed from service liability under Clause 4(a) shall be required to pay in cash an amount calculated at the rate of rupees one and a half lakh per year or part thereof from the date of admission to the college till the date of becoming a NSL limited to maximum of seven and half lakh together with interest calculated on the same basis stated in Clause 5.

9. This was the position in 1999. The High Court in each case observed that the candidate was suffering from ailment and was removed from service liability. After removal the present appellants tried to enforce the bonds on the purported ground of failure on the part of the cadet to serve the nation in accordance with the terms and conditions of the bond. In appeal relating to Kiran Kumar and Another, the High Court in the impugned judgment in paras 3 and 4 noted that in the earlier cases orders were passed that on payment of rupees one lakh when the bond amount was rupees three lakhs, there shall be total liquidation of liability on the bond.

10 According to learned counsel for the appellants till 1998 the bond amount which covered the cost of free education, ration and other facility during the entire period of four and a half years was rupees three lakhs. The bond amount was revised w.e.f. July, 1999. Guidelines were also issued on 18.2.2002 for deciding the cases relating to waiver of bond money in respect of medical cadet declared NSL on medical grounds. It is not in dispute that in each case the cadet was declared NSL. Thereafter, the appellants were of the view that cadets were required to pay the bond money as demanded.

11. Learned counsel for the respondent-cadet in each case submitted that the proviso of Clause 4(a) has been lost sight of by the appellants while raising the demand. Relevant clauses 4, 5 and 6 read as follows:

"4. The medical cadet will be declared to have become Non Service Liability in the event of any of the following:

(a) Being rendered medically unfit for commission due to any disease/disability detected at any time during the course or prior to commissioning; or

(b) Failing in attendance bel