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Synopsis

In the pleas filed by two medical colleges against the order for payment of stipends for the academic years from 2017-18 to 2019-20 to post-graduate students, the Madras High Court held that they were duty-bound and had a legal obligation to pay the said amount to the students.

The bench of Chief Justice SV Gangapurwala and Justice PD Audikesavalu rejected the submission of the medical colleges that on the principle of equitable set-off, they may not be directed to pay the stipend, rather they be allowed to adjust the stipend amount payable in the fees receivable from the students.

The division bench held that the payment of stipend being a statutory liability of the college, it would not be open for the college to deny the payment of the same to the students even on the ground of equitable set-off.

Court was hearing appeals moved by Mahatma Gandhi Medical College and Research Institute, Puducherry and Aarupadai Veedu Medical College & Hospital, Puducherry against a single judge bench order. 

The single judge bench, on several students' pleas, had directed the two colleges to make payment towards students' stipend in terms of Regulation 13.3 of the Medical Council of India (MCI), Post-Graduate Medical Education Regulations, 2000, expeditiously.

Before the division bench, the counsel for the colleges argued that the concerned students had not paid their fees. He informed the court that the issue with regard to the fees was pending consideration with the Apex Court.

Once any medical college has certain financial claims against a post-graduate student, the student cannot, ignoring such claims, set up a case of payment for due stipend, he argued. 

Further, while stating that entitlement of stipend is directly relatable to the payment of full fee, the counsel contended that the principle of equitable set-off was applicable in the present case. 

On the other hand, the counsel representing the students argued that the payment of fees by the students and the payment of statutory stipends by the colleges were two distinct transactions and could not be called the same transaction.

He submitted that for completion of the post-graduate course, the students have to mandatorily work as full-time resident doctors for which they are entitled to a remuneration paid as a stipend.

The division bench observed that the payment of stipend for the work done by the post-graduate students is a statutory obligation of the medical college.

"The Regulation 13.3 mandates that the Post-Graduate Students of Institutions located in various States / Union Territories shall be paid stipend on par with the stipend paid to the Post-Graduate students of the State Government Medical Institutions / Central Government Medical Institutions in the States / Union Territories, in which the Institution is located," noted the court. 

Further, court observed that the single judge bench had not decided any certain amount to be paid as a stipend to the students rather he had directed the colleges to pay as per the applicable rules and regulations.

Taking note of the same, court held, "The question of equitable set-off while deciding the matter would arise if there is some ascertained sum of money, recoverable by the Colleges from the petitioners. At present, there is no ascertained sum of money directed to be paid by the students to the Colleges towards the fees." 

Therefore, court found no error in the judgment of the single-judge bench and directed the colleges to pay the stipends to students.

Case Title: The Registrar Mahatma Gandhi Medical College and Research Institute and Another v. D.Rajasree and Others with connected matters