JUDGMENT

R.V.RAVEENDRAN, J.

Leave granted.

2. The Government of Punjab issued a prospectus notification dated 17.3.2008 (for short the `Prospectus') regarding admission to post graduate degree/diploma in Medical/ Dental Courses for the year 2008. Clause 14 relates to allocation of seats and relevant portions thereof are extracted below :

"14. In the Government institutions, 50% of the total seats in every such institution shall be filled by the Government of India on all India basis through an all India Competitive Entrance test. The remaining seats shall be filled through the Post Graduate Entrance Test - (PGET). Out of the remaining seats, 60% seats shall be filled up from amongst the eligible PCMS/PCMS (Dental)/PDES in service doctors and 40% shall be open to all eligible medical/dental graduates. (a) For 60% seats (In service PCMS/PCMS (Dental)/PDES) (i) The test shall be open to the candidates who have completed a minimum of three years rural service in PCMS/PCMS (Dental) or a minimum of three years Education Service. x x x (xi) All PCMS/PCMS (Dental) PDES doctors who are selected for admission to Post Graduate courses under 60% quota shall have to produce a No Objection Certificate from the Director, Health and Family Welfare/Director, Research & Medical Edcuation, Punjab, as the case may be before joining the course in accordance with instructions issued by the department of Health & Family Welfare vide memo No.26/12/94- 5HB2/9990 dated 13/5/96 and any other instruction issued by Punjab Government. (b) For 40% Seats:- (i) Medical/Dental graduates who are residents of the State of Punjab as per instructions of Department of Personnel (PP-II Branch) conveyed vide letter no.1/3/95-3PPII/9619 dated 6/6/1996 and No.1/2/95-3PPII/81 dated 1/1/1999. (ii) Any candidate in State Government employment shall produce a `No Objection Certificate' from his/her employer."

3. The Government Circular Memo dated 13.5.1996 referred to in clause 14(xi) of the Prospectus contains the policy regarding issue of `No Objection Certificate' (`NOC' for short). The relevant portions thereof are extracted below :

"1.1) The regular PCMS doctors having 3 years rural service/including Adhoc service would be eligible for admission in diploma/PG courses in State Medical College against 60% quota. xxxx

2) As per the notification issued by the Medical Education and Research Department, the candidates who are selected against 60% quota would be considered to be on deputation during the course, but not be paid any deputation allowance. On completion of the course, the doctor would be reverted to PCMS cadre........ 3) Those doctors who do not fulfill the condition as mentioned in para No.1 in case they are selected for diploma/PC courses would be given admission against the 40% quota. These doctors would have to resign from the job in order to join the diploma/PG courses in Medical Colleges of the state. 4) Those doctors who were selected for post graduation/Super speciality would have to fill the bond for government service for five years as follows : (1) For PG course : Rs. 2 lacs (2) For super speciality course : Rs. 3 lacs If the doctors do not serve the government for the above mentioned period, he would have to return the above mentioned amount to the government. xxxx 7) The PCMS doctors who are selected against 40% quota would not be issued any No Objection Certificate by Director health and family welfare." (emphasis supplied) The said circular dated 13.5.1996 was amended by government Circular dated 30.7.2007. Clause (2) of the amendment Circular required the in- service doctors who are selected for doing post graduate courses to give a bond for Rs.10 lacs undertaking to render government service for 10 years (instead of a bond for Rs.2 lacs for five years service earlier prescribed) and that if the candidate does not serve the government for the full period, he will have to give double of the amount of bond money to the government.

4. The first respond