A unilateral bond does not grant enforceable rights for continued employment; the ESIC can reduce bond terms without obligation to retain the bound personnel.

ORDER

Per: Justice Sunil Thomas, Judicial Member

All the applicants had attended MBBS course at Employees State Insruance Corporation (ESIC) medical college and PGIMSR, Chennai under 'ESIC Residency Scheme'. Under the scheme, such candidates are admitted to study in the college at subsidized fees rate, on executing a bond, inter alia, undertaking that after completion of their studies, they will undertake bond services at the ESIC hospitals as Junior Residents for the period prescribed in the bond. Accordingly, the applicants executed bonds at the time of their admission to the MBBS course to the medical college, inter alia, undertaking to render bond service as Junior Resident (UG) in the ESIC hospitals for 3 years. The applicants accordingly underwent studies in the 2017-22 batch. After their studies, they joined the ESIC hospitals in Kerala on 31.07.2023.

2. Upto 2016, the prescribed bond period was 5 year for MBBS/BDS batches. In 2017 the bond period was reduced to 3 years by Annexure A-4 document. In 2020, by Annexure A-5 dated 28.07.2020, bond period was revised giving option to existing Junior Residents either to continue for the entire bond period (5 years or 3 years as the case may be) or to end the bond service after one year. If no such option was exercised, they would be governed by the original bond condition. The applicants claim that since they decided to continue for 3 years they did not avail the option. Accordingly, they did not exercise the option. While so, by Annexure A-6 memorandum dated 10.08.2023, issued by the Headquarters of ESIC, they were informed that Junior Residents who have completed one year of bond service shall be relieved without any obligation and the bond of Junior Residents who had joined service in 2023 and subsequently shall be relieved compulsorily on completion of one year bond service, irrespective of the bond period. According to the applicants, Annexure A-6 order of compulsory termination of bond service, overlooking the original bond, was illogical, arbitrary, unreasonable and per se illegal. Annexure A-7 request by them was submitted to extend the bond period of Residents. Since it was not responded favourably, the applicants have approached this Tribunal and sought relief as follows:

(i) call for the entire records connected to Annexure A-6 and set aside the same to the extent it instructs to compulsorily relieve the bond of JR's who have joined bond service in 2023 in ESIC institutions on completion of 1 year bond service, irrespective of the bond duration signed;

(ii) declare that the applicants are entitled to continue till the already signed bond duration of 3 years as evident from Annexure A1 to A3 with a facility of option prevailed as per condition No.2.4 in Annexure A5, than compulsorily relieving them upon completion of 1 year based on Annexure A6

(iii) direct the 2^nd respondent to consider Annexure A-7 and another request on 04.06.2024 submitted by the 1^st applicant and permit the applicants to opt to continue on the original bond period

3. An interim order was granted after hearing both sides directing the respondents not to enforce Annexure A-6 against the applicants.

4. A detailed reply statement was filed by the ESIC denying the various contentions set up in the original application. It was stated that regular recruitment of General duty Medical Officer cadre of ESIC was done. Accordingly 890 doctors have been selected. They were expected to join in August 2024. The student junior residents cannot be accommodated. Hence they had to be returned. It was contended that the bond does not create any vested right to the applicants to claim continuation as of right. It was contended that there w