The said order was delivered by a division bench of Chief Justice Sanjay V Gangapurwala and Justice PD Audikesavalu.

In he said matter, the Court highlighted that ''The payment of stipends is a statutory liability of the colleges, making it impermissible for them to refuse payment to the students. The court ruled that the colleges are legally bound to pay the stipend amount and cannot deny it on the basis of equitable set-off, irrespective of the fact that the amount is still to be ascertained.''

The colleges claimed that if students demanded stipend payments, they should also acknowledge their fee obligations. However, the students contended that stipends and fees were separate transactions, with stipends serving as remuneration for their work as resident doctors during their course. They did not consider it part of the tuition fees. The colleges expressed concerns that being forced to pay stipends would make it challenging to recover unpaid fees from the students.

After listening to both parties and examining the relevant statutory provisions, the Court concluded that the liability of the colleges to pay stipends to the students was governed by a statutory regulation. The Court emphasized that the claims in the case did not arise from a commercial transaction. It clarified that while the amount payable by the colleges to the students as stipend was determined, there remained a dispute regarding the payment of fees. The students had complied with the Court’s orders and paid the required amount, promising to pay any higher or outstanding fees if directed by the Court. Currently, there are no orders instructing the students to pay the increased fees claimed by the college.

The Court further stated that the question of equitable set-off did not arise since there was no definite amount directed to be paid by the students to the colleges as fees.

Consequently, the petitions were dismissed.

Case Name: The Registrar, Mahatma Gandhi Medical College and Research Institute v. D Rajasree & Anr.