Medical College Cannot Enforce Bond for Unrecognised PG Course: Jharkhand High Court

In a significant ruling that underscores the obligations of medical institutions towards students, the Jharkhand High Court has held that a bond signed for admission to a postgraduate course that is not recognized by the Medical Council of India (MCI) is unenforceable. Justice Ananda Sen, presiding over a single bench, quashed the ₹30 lakh bond that Dr. Mahesh Kumar was forced to execute upon joining Mahatma Gandhi Memorial Medical College (MGM College), Jamshedpur, and directed the college to refund ₹39,94,645 along with ₹7 lakh compensation.

A Meritorious Doctor's Ordeal

Dr. Mahesh Kumar, an MBBS graduate from Moti Lal Nehru Medical College, Allahabad, secured a seat in the Diploma in Medical Radio Diagnosis (DMRD-Radiology) course at MGM College through the NEET-PG 2019 counselling. However, soon after joining in April 2019, he discovered that the course lacked proper faculty—with only a single Assistant Professor in the Radiology department—and basic equipment like a functioning CT scan and any MRI machine. More critically, the course itself was not recognized by the MCI.

After wasting two years, Dr. Kumar cleared the INI CET and later the NEET-PG 2021 with an All India Rank of 270, securing admission at Sanjay Gandhi Postgraduate Institute of Medical Sciences, Lucknow. But his original certificates were withheld by MGM College unless he paid ₹30 lakh under the bond and refunded the stipend he had received.

Fraud at the Heart of Admission

The court minced no words in calling out the college's conduct. It observed that the admission was "based on foundations of deception ," rendering the bond void. Justice Sen quoted the classic fraud test from Derry v. Peek : " fraud is proved when it is shown that a false representation has been made knowingly, without belief in its truth, or recklessly."

The judgment noted that the college's own counter-affidavit admitted the course was " permitted and not recognized ," and that the petitioner was "verbally shared" this detail. But the court held this immaterial: "A course which is not recognised by the MCI should not be offered and no student should be admitted in the said course." The college could not hide behind the student's purported knowledge when it had no legal right to admit him in the first place.

Lack of Basic Infrastructure Revealed

The court was particularly scathing about the infrastructure deficiencies. The college admitted that there was only one Assistant Professor in Radiology, a CT scan machine that had been non-functional since September 2020, and no MRI machine at all. Justice Sen remarked: "It is really surprising that a college offering a Postgraduate Diploma Course in Radiology does not possess a MRI Machine which is a bare minimum requirement and the CT Scan Machine which is available, is also not functional."

This concealment, the court held, amounted to fraud on the student. It further criticized the MCI for failing to take appropriate steps against the college, observing: "It can be said that the Medical Council of India is also shutting their eyes and shirking their responsibility."

Award and Directions

Allowing the writ petition, the court ordered: - Refund of ₹39,94,645 (the bond amount and stipend deposited by the petitioner under interim order). - Compensation of ₹7,00,000 for mental agony and loss of career time. - Release of the petitioner from all liabilities under the bond.

The college must comply within three weeks, failing which the Finance Department of Jharkhand will deduct the amount from the college's allocation and pay the petitioner.

Key Judicial Pronouncements

The judgment reinforces that admission to an unrecognized course is a nullity, and any bond extracted in such circumstances is void ab initio. The court's reliance on Ram Chandra Singh v. Savitri Devi and Derry v. Peek establishes that suppressing material facts—like non-recognition and lack of infrastructure—constitutes actionable fraud. This decision serves as a warning to medical colleges and counselling bodies to ensure only recognized courses are offered and advertised.