IN THE HIGH COURT OF KERALA AT ERNAKULAM
Antony Dominic, Dama Seshadri Naidu, JJ.
Ayisha Beegam – Appellant
Versus
State of Kerala – Respondent
W.A. Nos. 2392 of 2016
Decided On : 16-03-2018
The Contract Act- section 23 -The College's conduct cannot be "accepted as approved social conduct-The doctrine of public policy is highly subjective, shifting, and even changing. Statutorily examined, the compulsion of the students' fulfilling the bond-obligation does not seem to fall foul of any public policy. The Central Government, through Ext.P1, permitted the college, university, or the State Government to impose its own conditions for admission. The students, consciously, consented to the conditions, executed the bonds, and never challenged them-until they completed their course. True, students have a weak bargaining power in a contract vis-à-vis the college or the establishment. So they may have signed on the dotted lines, without demur. That said, still their conduct while they continued the course is inexplicable. They could have challenged the bond obligations. They did not.
Statement of facts:
A few students, under All India Quota (NEET), joined the post-graduate medical courses, both in Government and private colleges. At the time of their joining the course, the students' parents executed a bond with the college management. The bond stipulated that the students would have their certificates-submitted during admission-released only after their completing "one-year compulsory employment or on payment of the compensation… ."- The bond provides for remedial mechanism if the student breaches the condition: the student's failing to serve in the State the mandatory period of one-year or, in the alternative, failing to compensate the State, the management can compel the parent to compensate; the recovery may be from the parent's properties, movable or immovable. Many students from other states, after passing out, refused to comply with the bond conditions; instead they questioned them. It led to litigation across the nation, Kerala included.
Finding of the court:
They may serve the State and be paid or sever their relation and leave it; it comes at a price: paying liquidated damages. If the students leave for greener pastures, they must be prepared to pay, to compensate. Medical profession-tough as it is and, perhaps, lucrative as it may be-is not all about money; it has still an element of service.
" About the State's retaining the documents, we may observe that most students are from other states. After their leaving the place, it is well neigh impossible for the State or the colleges to enforce recovery. So, as is permissible under law, and as agreed in Clause 2.2 of the State prospectus, it can enforce its contractual right, by retaining the documents.
Result: W.A. No. 2457 of 2016 dismissed
W.A. No. 2392 of 2016 dismissed
W.A. No.1726 of 2017 allowed
Dama Seshadri Naidu, J.
Introduction:
1. A few students, under All India Quota (NEET), joined the post-graduate medical courses, both in Government and private colleges. At the time of their joining the course, the students’ parents executed a bond with the college management. The bond stipulated that the students would have their certificates-submitted during admission-released only after their completing “one-year compulsory employment or on payment of the compensation.”
2. The bond provides for remedial mechanism if the student breaches the condition: the student’s failing to serve in the State the mandatory period of one-year or, in the alternative, failing to compensate the State, the management can compel the parent to compensate; the recovery may be from the parent’s properties, movable or immovable. Many students from other States, after passing out, refused to comply with the bond conditions; instead they questioned them. It led to litigation across the nation, Kerala included.
Facts:
3. We have before us a batch of Writ Appeals filed by a medical college, the Government, and a few students, too. In these appeals the students insist that their certificates be returned without penalty imposed on them. We tabulate the cases:
Writ Appeal
Writ Petition
No. of Students
State of Origin
2457 of 2016
31101 of 2016
Kerala (2)
Tamil Nadu (2)
Madhya Pradesh (1)
Karnataka (1)
2392 of 2016
31690 of 2016
15
Karnataka (2)
Tamil Nadu (10)
Maharashtra (3)
1726 of 2017
18634 of 2017
1
Chattisgarh
4. Both W.P. (C) Nos. 31101 of 2016 and 31690 of 2016 were disposed of through a common judgment. The students’ claim was for return of their educational certificates. Given their unwillingness to fulfil the bond conditions, the colleges refused to part with the certificates. It led to the students’ filing two Writ Petitions. On merits, the learned Single Judge has anchored his reasoning on Clause 2.2 of the Ext.P1 Prospectus/Information Bulletin for National Eligibility-cum-Entrance Test (Post Graduate). The clause cautions the students that their mere appearance for the test does “not confer any automatic rights to score a Post Graduate MD/MS/Post Diploma Seat.” The students’ admission is subject to their fulfilling the admission criteria as may be prescribed by the respective universities, medical institutions, Medical Council of India, State/Central Government.” Further, the learned Single Judge has repelled the students’ claim by referring to the Ext.P7 prospectus issued by the State Government.
5. So the learned Single Judge did not find any illegality or arbitrariness either by the Government or the colleges. Thus both the Writ Petitions dismissed, the students appealed.
W.A. No. 1726 of 2017:
6. One student got admitted under All India Quota into Medical PG Course of the Government Medical College, completed the course, and later demanded the college to return her certificates. Faced with refusal, she filed W.P. (C) No. 18634 of 2017: that the State Government can impose no conditions for compulsory State service on students admitted under the All India Quota.
7. A learned Single Judge, through judgment, dt.27.06.2017, allowed the Writ Petition. The judgment, in fact, notes that this Court in Shireen vs. State of Kerala, 2017 (2) KLT 691 has held that the condition is opposed to public policy—Section 23 of the Contract Act. It also notes that another learned Single Judge in W.P. (C) No. 31690 of 2016 (now in appeal) took a different stand. So the judgment advises the student to await the issue resolution in appellate proceedings. But it also directs the Government “to release the original certificates” forthwith, besides clarifying that the judgment “will not preclude the State from instituting appropriate proceedings for realizing the liquidated damages” from the students.
Submissions:
Stud
Anand S. Biji vs. State of Kerala
Harsh Pratap Sisodia vs. Union of India
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