Dr Ankit Sharma & Ors. v. Union of India & Ors.

1. These three writ petitions have been filed under Article 226 of the Constitution of India to assail common order passed by the Central Administrative Tribunal, Principal Bench, New Delhi in three Original Applications of the present petitioners are taken up together, the factual and legal matrix being similar. On the very first date of hearing, respondents entered appearance through counsel and at request of both sides, final arguments were heard at the initial stage itself.

2. Briefly stated, circumstances relevant for present purposes as pleaded in the petitions are as follows. 2.[1] The present petitioners are dentists by profession and at the time of joining the course of Bachelor of Dental Surgery (Batches of 2014-19, 2015- 20, 2016-21 & 2017-22) in the Employees State Insurance Corporation Dental College and Hospital, Rohini, Delhi (hereinafter referred to as “the ESIC”), they submitted their individual service bonds in favour of the ESIC in lieu of the ESIC agreeing to incur the expenditure for their education. 2.[2] Those service bonds involved in WP(C) 12260/2024 stipulated that the petitioners of the said petition would have to mandatorily serve the ESIC for a period of three years after passing the said course, failing which they would be liable to pay to the ESIC the bond amount of Rs. 10,00,000/- each with interest at a rate of 15% per annum. Those service bonds involved in WP(C) 12261/2024 and WP(C) 12264/2024 stipulated that the petitioners of the said petitions would have to mandatorily serve the ESIC for a period of five years after passing the said course, failing which they would be liable to pay to the ESIC the bond amount of Rs. 7,50,000/- each with interest at a rate of 15% per annum. 2.[3] The policy regarding tenure of those service bonds was revised from time to time by the ESIC. Finally, by way of communications dated 28.07.2020, followed by 30.03.2021, the ESIC instructed all its Institutions to reduce the bond tenure to one year. 2.[4] However, after completion of their BDS course, none of the petitioners was called upon by the ESIC to render services nor any of the petitioners approached the ESIC for the said purpose. Some of the petitioners proceeded further with higher studies. 2.[5] By way of email dated 03.08.2023, the ESIC called upon the petitioners to render their services in terms with the revised bonds for a period of one year. In pursuance of the said communication, the petitioners joined the service of the ESIC, where they continued to serve till the date of institution of their respective Original Applications in the Tribunal and Writ Petitions in this Court.

3. Against the above backdrop, the petitioners filed three Original Applications seeking quashing of communication dated 30.03.2021 and permission to serve the full tenure of five/three years in terms with the bond conditions. By way of order impugned in the present writ petitions, the learned Tribunal dismissed the Original Applications of the petitioners. The relevant portion of the impugned order is extracted below: “10. The applicants joined the Corporation as students to pursue the undergraduate course and at the relevant point of time, the applicants signed the bond, to serve the respondents for five years, in view of the expenses made by the Corporation to fund their education and in case, the applicants did not serve the respondents for five years, they were liable to pay an amount of Rs. 7,50,000/-. It is submitted in OA NO. 750/2024, neither the applicants approached the respondents to confirm if their services were needed nor did the respondents seek the services of the applicants, therefore they proceeded to pursue their Master Degree. It is also submitted that legal notice has been responded to by the respondents and the same has been assailed by the applicants in the OA 750/2024.

11. We have perused the bond signed by the applicants, In terms of the same, the respondents were obliged to seek the services of the applicants, if required that is to say need basis. Evidently, the respondents did not require the services of the applicants at the relevant point of time and therefore, the applicants did not serve the respondents. During the interregnum, the tenure of the service bond has been reduced considerably from five years to three years and thereafter to one year. Only after the revised instructions were issued, the respondents sought the services of the applicants. It is clarified that the applicants’ services were sought on 05.08.2023 and by then, the Corporation had issued revised instructions with respect to bond period to one year and the applicants have joined on different dates in pursuance of offer extended to them after 05.08.2023. Since the revised conditions dated 28.07.2020 were operative, when the applicants joined, according to us, they were obliged to serve only for about one year.

12. Learned counsel for the applicants has submitted that the applicants have not signed any new bond in pursuance to their employment offered on 05.08.2022. Be that as it may, the instructions changed in the interregnum, the service bond signed by the applicants at the relevant point of time ceases to exist after the expiry of five years and the same was not operated upon by both the respondents and the applicants.”

4. During arguments, learned counsel for petitioners took us through the above background and the relevant documents to contend that the order impugned in the present petitions is not sustainable in the eyes of law. It was argued on behalf of petitioners that once the respondents had accepted the service bonds for tenure of five/three years, they had no authority to unilaterally alter tenure of service, reducing the same to one year. Learned counsel for petitioners contended that the service bonds are basically contract between the ESIC and the petitioners, therefore, the petitioners have a right to continue in the employment of ESIC for a period of five/three years from the date of their joining the service. In support of his arguments, learned counsel for petitioners placed reliance on the judgments in the cases titled Adeeba Asrar vs All India Institute of Medical Sciences, 2022 SCC OnLine Del 1780; Dr. K. Ashwarya vs Union of India, 2020 SCC OnLine Mad 9304; Hemant Kumar Verma & Ors vs Employees State Insurance Corporation & Ors., 2022 SCC OnLine SC 924; Association of Medical Superspeciality Aspirants & Residents & Ors vs Union of India & Ors, (2019) 8 SCC 607; Krishna Rai & Ors vs Banaras Hindu University & Ors, (2022) 8 SCC 713; Manuelsons Hotels Pvt. Ltd vs State of Kerala & Ors, (2016) 6 SCC 766; and State of Jharkhand vs Brahmaputra Mettalics Ltd., (2023) 10 SCC 634.

5. On the other hand, learned counsel for respondents supported the impugned order and contended that the present petitions are devoid of merits. Learned counsel for respondents repelled the rival contention to treat the said service bonds as a contract between the ESIC and the petitioners. It was contended on behalf of respondents that the ESIC is well within its rights to reduce the tenure of service in terms with the said bonds.

6. Thence, the issue before us is as to whether the subject service bonds can be read in a manner as to create a right to employment in the petitioners.

7. It would be apposite to examine the wordings of the said bonds, which are extracted below: BOND (Total value of Rs 100/- Stamp Paper) (FOR BDS & MBBS STUDENTS TO KNOW All MEN BY THESE PRESENTS THAT We, ______ son/daughter/wife of ______ residing at ______ (herein-after called the Bounden) and (1) Shri ______ (Parents/Guardian) residing at ______(Here enter address) (hereinafter called 'the surety) do hereby bind ourselves and each of us, our and each of our heirs, executors and administrators jointly and severally to pay to the Employee's State Insurance Corporation (hereinafter referred to as 'the Corporation') on demand the total amount of Rs 7,50,000 (Rupees Seven lakh fifty thousand only) the amount spent by Corporation for their studies ·with 15% interest as fixed by Corporation. Signed this.......... Day of.......... in the year.......... by the bounden Shri/Smt....... Signature In the presence of Witness:

1. ······································ 1. Signed by bounden (Name & Address) (Name & Address with official seal)

2. ··································· 2. Signed by Shri/Smt................. (The Surety) (Name & Address) (Residential Address with proof is compulsory) WHEREAS the Bounden undergo MBBS/BDS in Corporation Medical College/Dental College in the merit quota for the duration of the course as prescribed by Medical Council of India/ Dental Council of India AND WHEREAS, the Corporation have agreed to incur the expenses on condition that after successful completion of the course of study within the prescribed period the bounden shall serve the ESI Corporation/ESI Scheme for a period of five years in any institution of the Corporation/Scheme any where in India, if the Corporation requires and also subject to the terms and conditions hereinafter appearing and the bounden and the sureties have agreed to the same. NOW the condition of the above written obligation is that in the event the Bounden after successful completion of the Graduate course of study to which he/she was selected, fails to serve the Corporation for period of five years, if required by the Corporation, the Bounden and sureties shall forthwith pay to the Corporation for violation of conditions, on demand the total amount of Rs 7,50,000/- (Rupees Seven lakh fifty thousand only) the amount spent by the Corporation for their studies along with 15% interest as fixed by the Corporation. On the quantum of amount payable by the Bounden and the sureties, the decision of the Corporation shall be final and legally binding on the bounden and sureties and upon the payment of such sum the above written obligation shall be discharged.

PROVIDED further that the bounden and the sureties do hereby agree that if the Bounden fails to serve the Corporation for a period of five years, if Corporation requires, it may be construed as 'professional misconduct' and the fact reported to the Medical Council of India /Dental Council of India for suitable action including cancellation of Registration by the Council.

PROVIDED further that the bounden and the surety do hereby agree that all sums found due to the Corporation under or by virtue of this bond shall be recovered jointly and severally from them and their properties movable and immovable as if such dues were arrears of land revenue under the provisions of the Revenue Recovery Act for the time being in force or in such other manner as the Corporation may deem fit. The liabilities of the sureties under this Bond is Co extensive with that of the Bounden and shall not be affected by the Corporation giving time or any other indigence to the bounden of by the Corporation varying of the terms and conditions herein contained, Signed this..........Day of.......... in the year.......... by the bounden Shri/Smt........... Signature In the presence of Witness:

1. ······································ 1. Signed by bounden (Name & Address) (Name & Address with official seal)

2. ··································· 2. Signed by Shri/Smt................. (The Surety) (Name & Address) (Residential Address with proof is compulsory)