The court held that while service bonds in educational admissions are enforceable, penalties for breach must align with actual incurred losses rather than arbitrary amounts.

ORDER

This writ petition has been filed challenging the conditions imposed on the service candidates in the prospectus for admission to Post Graduate Degree/Diploma Courses in Tamil Nadu Government Medical Colleges and Government Seats in Self-Financing Medical Colleges Affiliated to the Tamil Nadu Dr.M.G.R.Medical University & Rajah Muthiah Medical College Affiliated to Annamalai University 2019-2020 Session dated 10.03.2019 insofar as compelling the petitioner to serve till superannuation failing which to pay Rs.40,00,000/- (Rupees Forty Lakhs only) as security and the bond dated 07.08.2019, and also challenging the orders of respondents 1, 4 & 5.

2. The petitioner, after completion of her UG degree, was qualified in the NEET PG entrance examination and she was eligible to get post graduation seat. Earlier, after completion of her undergraduation, she had been appointed as Casualty Medical Officer at Government Mohan Kumaramangalam Medical College and Hospital, Salem by direct recruitment. Thereafter, she was transferred as Medical Officer at Government Upgraded Primary Health Centre, Elampillai, Salem District. As service candidate, as per the prospectus for the post graduation degree in Tamilnadu Government Medical Colleges for the batch 2019-2020, she should apply only as service candidate and there was no provision for service candidate to opt for applying as non-service candidate (general category) foregoing the pay scale. Therefore, she applied as service candidate and she was awarded 5% incentive mark considering her service of 1 year and 7 months in rural area. She was selected for MS (Obstetrics and Gynaecology) in Government Medical College, Thanjavur. She had executed bond as per the prospectus during her post graduation course. During her post graduation course, she had worked as post graduate doctor in Department of Obstetrics and Gynaecology and she was also put on covid-19 duty from March 2020 to 20.06.2022. After completion of her post graduation, she was posted as Assistant Professor in the Department of Obstetrics and Gynaecology at Government Mohan Kumaramangalam Medical College and Hospital, Salem. However, she could not continue her service due to her illness and also other family circumstances. Therefore, the fourth respondent issued show cause notice dated 19.12.2023 thereby demanded to pay a sum of Rs.1,61,55,261/- computing the bond amount with penal interest till her superannuation. On receipt of the same, the petitioner submitted her explanation. Further, the fourth respondent requested the fifth respondent to recover the bond amount under Section 5 of Revenue Recovery Act by the communication dated 14.05.2024. Thereafter the fifth respondent authorised the sixth respondent to recover the bond amount from the petitioner by an order dated 01.07.2024.

3. The learned counsel appearing for the petitioner would submit that the demand is exorbitant and there is no basis for claiming such huge amount. Though the petitioner had secured high scores to get PG seat under open quota, she was not allowed to apply as non-service candidate under open quota since non-service candidates have to serve only for one year or to pay a bond amount of Rs.20,00,000/- as penalty. But the service candidates have to render their service till their superannuation or to pay a bond amount of Rs.40,00,000/- as penalty. It is illegal, irrational, discriminatory, disproportionate without any founding principle. The condition of service till superannuation is nothing but bonded labour under slavery. The bond conditions were approved by the Government Order in G.O.(D) No.443 Health a