Madras High Court said that doctors are not factory workers and hospitals are for service, not business. A hospital’s plea seeking ₹42 lakh on the resignation of a doctor was rejected and a fine of ₹1 lakh was imposed on him.
Chennai: Madras High Court has made a strict comment in a case saying that doctors are not factory workers. The court said that hospitals are for service, they cannot be run like a business. Even if there are no hospitals, doctors can work, but hospitals cannot run without doctors. This entire matter is related to ‘Madras Institute of Orthopedics and Traumatology’ (MIOT), a private hospital in Chennai. Dr. Balaraman Palaniappan, a cardiologist working here, had filed a petition against the hospital, hearing which the court said these things.
This controversy started when Dr. Balaraman resigned from the hospital in April 2025. The hospital management put pressure on him to complete the notice period of three months, otherwise he would have to deposit Rs 42 lakh as compensation. The court rejected the hospital’s petition in this case. Not only this, the court imposed a fine of Rs 1 lakh on the hospital and ordered to pay this amount to the doctor.
Why ask for Rs 42 lakh from the doctor?
Justice N Anand Venkatesh gave this important decision in this case. The hospital’s allegation was that the doctor had decided to break the contract and take up a job in another hospital, hence he would have to pay compensation. However, the court found that the doctor had resigned after giving notice as per the law and he did not violate any terms of the contract. The court said that it is very unfortunate that a hospital adopts such an attitude towards a doctor. It seems that the petitioner hospital has forgotten that it is running a hospital and not a factory. The court also made it clear that no doctor can be stopped from providing his services at the place of his choice.