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2024 Supreme(Del) 223

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Dr. Vaishnavi Verma - Appellant
Versus
Union of India & Anr. - Respondents
W.P.(C) 953 of 2020
Decided On : 06-02-2024

Advocates appeared:
Ms. Rashmi Chopra and Mr. Humraj Bir Singh, Advocates, for the Petitioner.
Mr. Tanveer Ahmed Ansari, Senior Panel Counsel, for the UOI.
Mr. T. Singhdev, Mr Abhijit Chakravarty, Ms. Anum Hussain, Mr. Tanishq Srivastava, Mr. Aabhaas Sukhramani, Mr. Bhanu Gulati and Ms. Ramanpreet Kaur, Advocates, for the NMC.
Gulati, Advocates, for the NMC.
Mr. Mohinder J.S. Rupal and Mr. Hardik Rupal, Advocates for University of Delhi.

IMPORTANT POINT
The execution of a Surety Bond involves a conscious bargain, and the student must abide by its terms even in unforeseen circumstances.

Headnote:

Surety Bond - Admission to PG Course - Ashish Ranjan v. Union of India, (2016) 11 SCC 225 - NEET-PG examination, Security Bond, Retention of original certificates, Stray vacancy round of counselling, Resignation from current post, Demand draft for fulfillment of bond

Fact of the Case:

The petitioner sought a refund of Rs.10 Lakhs paid as per a Surety Bond executed at the time of obtaining admission to a postgraduate course in UCMS, affiliated to DU. The petitioner secured admission to a MD (Radio diagnosis) seat in UCMS and later resigned to join AIIMS, submitting a demand draft for Rs.10 Lakhs in fulfillment of the bond.

Finding of the Court:

The Court found that the petitioner consciously entered into the Surety Bond and resigned from UCMS, complying with the stipulated condition. The Court held that it cannot grant relief as it would set an unwholesome precedent and the execution of a Surety Bond involves a conscious bargain.

Issues: The main issue was whether the petitioner should be refunded the amount paid as per the Surety Bond after resigning from the current post to join another institution.

Ratio Decidendi: The Court emphasized that the execution of a Surety Bond involves an element of uncertainty, and the student consciously takes the risk. It held that the petitioner consciously entered into the Surety Bond and must abide by its terms.

Final Decision: The petition was dismissed, and no order as to costs was given.

JUDGMENT (Oral)

1. This writ petition seeks a direction to the University of Delhi ("DU" hereinafter) to refund an amount of Rs.10 Lakhs to the petitioner. The amount was paid by the petitioner, pursuant to a Surety Bond executed by the petitioner at the time of obtaining admission to the postgraduate (PG) course in the University College of Medical Sciences (UCMS), affiliated to the DU.

2. The controversy is brief.

3. In accordance with the schedule fixed by the Supreme Court in its judgment dated 18 January 2016 in Ashish Ranjan v. Union of India, (2016) 11 SCC 225, the NEET-PG examination was conducted for admission to PG courses in medical colleges across the country. The judgment in Ashish Ranjan stipulated strict timelines within which various examination was to be conducted. Insofar as the time schedule for completion of the admission process for PG Medical Courses were concerned, the following timeline was stipulated by the Supreme Court.

S. No.Schedule for admissionBroad SpecialityAll India quotaState quota1.Conduct of Entrance ExaminationMonth of DecemberMonth of January2.Declaration of result of the qualifying Exam/Entrance ExamBy 15th of JanuaryBy 15th of February3.1st round of counselling/admissionBetween 12th March to 24th MarchBetween 4th April to 15th April4.Last date for joining/reporting the allotted college and the course.By 3rd AprilBy 22nd April5.2nd round of counselling/admission for VacanciesBetween 23rd April to 30th AprilBetween 11th May to 20th May6.Last date of joining for the 2nd round of counselling/admissionBy 10th MayBy 27th May7.Commencement of the academic session/term.1st May1st May8.Last date up to which students can be admitted/joined against vacancies arising due to any reason-By 31st May

4. The judgment also required the All India Institute of Medical Sciences (AIIMS) and the Postgraduate Institute of Medical Education and Research (PGI), Chandigarh to follow the above schedule.

5. The petitioner underwent the NEET PG examination and, by virtue of her performance, secured admission to a MD (Radio diagnosis) seat in the UCMS.

6. At the time of securing admission to the UCMS, the petitioner entered into a Security Bond. The bond required the student to pay Rs.10 lakhs to the college in which the student obtained admission in certain specified circumstances. The relevant part of the Security Bond may be reproduced:

"The student has, therefore, agreed to be loyal to pay a sum of Rs.10.0 lakhs (Ten lakhs only) to the college in the following circumstances;

A. If the student does not join, the course, at the allotted Institution on or before the stipulated date for subsequent counselling.

B. If the student leaves the course before its completion except those who leave the course before the day of conduct of Stray vacancy round of counselling.

C. If the admission/registration of the student is cancelled/terminated by the University on account of unsatisfactory performance/misconduct/indiscipline.

Whereas the student undertakes that till the entire surety amount Rs.10.0 lakhs (Ten lakhs only) is paid, the college and/or the University of Delhi shall have the right to retain the original certificates of the student."

(Emphasis in original)

7. I may note, at this juncture, that Ms. Rashmi Chopra, who appears for the petitioner, sought to take exception to the DU's refusal to return the original documents of the petitioner till the Surety Bond was discharged. She has placed reliance on the judgment of the learned Single Judge of this Court in Dr. Devender Pal Singh Tomar v. U.O.I., (2018) 169 DRJ 171 as well as the judgment of the Division Bench of this Court in Dr. Arjun Saili v. U.O.I., 2021 SCC OnLine Del 4212, in each of which this Court held that the original certificates of the students could not be retained for nonpayment of the amount envisaged in the Surety Bond. However, neither of the said decisions can come to the aid of the petitioner on this aspect as, in para 15 of Dr. Arjun Saili and in para 9 of D

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