CHENNAI: “Doctors can thrive without hospitals whereas a hospital can never exist without doctors supporting such hospitals by rendering their services. Therefore, by no stretch, a hospital can treat a doctor like a workman in a factory or a technical person or a regular employee employed by an organization,” said Madras High Court.
The observation was made by Justice N Anand Venkatesh on Monday while dismissing a petition filed by the MIOT Hospital seeking an order for referring the dispute between the hospital and a doctor, who had resigned and joined another corporate hospital, for arbitration.
The court found the respondent, Dr Balaraman Palaniappan, had given prior notice before resignation and so, there survives nothing to be referred to arbitration.
The matter pertains to the resignation of Balaraman Palaniappan from the petitioner-hospital. Being a cardiothoracic surgeon, he was appointed by a professional agreement dated September 8, 2022. After two years and seven months, he sent a communication to the hospital management, on April 21, 2025, expressing his intention to resign and effectively terminated the agreement.
The petitioner hospital stated that he did not respond to its letter on serving for three months or paying up to three months salary before leaving the services. It sought liquidated damages of Rs 42 lakh. The respondent-doctor contended that the issue is not arbitrable as it is in violation of Section 27 of the Indian Contract Act, 1872, and so, wanted the petition be dismissed.
The judge dismissed the petitions with costs of `1 lakh payable by the hospital to the doctor.