Institutions Cannot Withhold Certificates Of Students To Enforce Bonds: Telangana HC

Hyderabad: A two-judge panel of the Telangana High Court reiterated that educational institutions cannot withhold original academic certificates of students to enforce service bonds. The panel comprising Justice K. Lakshman and Justice B.R. Madhusudhan Rao was dealing with a writ appeal filed by Dr Santosh Kumar Gandupalli and others, challenging the order of a single judge dismissing their plea for release of original academic certificates.

The appellants contended that they pursued super speciality courses (DM/MCh) and, despite completion of their studies, the Osmania Medical College withheld their original certificates on the ground that they did not fulfil the mandatory two-year service in government hospitals as stipulated in the undertaking furnished at the time of admission. It was argued that the institution lacked authority in law to retain such certificates and that, at best, it could seek recovery of the bond amount through appropriate legal proceedings. A single judge earlier observed that state was competent to impose and enforce compulsory service bonds on super-speciality medical students, and that the requirement to serve the government for two years or pay the stipulated penalty did not violate the provisions of the Constitution.

In appeal, the panel held that no lien vested with the college over the original certificates of students. It observed that even in cases involving breach of undertaking, the remedy available to the institution lay in initiating proceedings for recovery of the stipulated bond amount and not in withholding certificates. The panel took note of earlier rulings wherein similar provisions permitting retention of original certificates stood declared unconstitutional. Setting aside the order under appeal, the panel allowed the writ appeal and directed the respondent college to return all original certificates of the appellants within one week. It clarified that the institution remained at liberty to initiate appropriate proceedings for recovery of the bond amount, if any violation of the undertaking arose.