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Regarding indemnity bonds with employer
Question
I am currently pursuing post graduation with a renowned medical college. Before i got enrolled with the super speciality course, an indemnity bond was executed whereby after completion of course, i had to work with the hospital for 2 years minimum. Is such kind of indemnity allowed to be executed? What action can be taken against me if i dont complete two years.
Answer ( 1 )
As per the dictum of the Supreme Court, wherein students from various post graduate specialty courses had challenged the indemnity bond in the case of “Association of Medical Super Speciality Aspirants and Residents & Ors.v Union of India”, such kind of indemnity bonds are held to be valid and not hit by the provision of Section 27 of the Indian Contract Act which declares such kind of non-compete clauses as void. Further, it has also been held by the Supreme Court in this case that the compulsory signing of the indemnity bond does not violate the fundamental rights and hence is not unconstitutional. hence in your circumstances if you do not complete 2 years after completion of your course then whatever damages is mentioned in the indemnity bond has to be paid. For further specific query, kindly contact us through, chat or call or whtaspp.