ORDER : 1. Leave granted. 2. The appellant filed a writ petition seeking direction against the State not to compel the appellant to serve the State Government, particularly, in hilly area compulsorily for a period of five years, or in alternative to pay damages to the tune of Rs. 30 lakhs. The case as set out by the appellant before the High Court was that she was admitted to Government Medical College for MBBS course under 15% all India quota seats on qualifying All India Pre-Medical Test and she was required to pay concessional fee as prescribed. As per the proforma, no bond was applicable on such students, however, the appellant was made to fill the bond just before the examination by the Dean under compelling circumstances, namely, if she doesn’t fill the bond, she wouldn’t be allowed to appear in the examination. The respondent on the other hand submitted that the students paying concessional fee and did not wish to render the service in remote/hilly region after graduation were required to pay the regular/differential fee, which has not been done in the instant case. Upon contest, the learned Single Judge allowed the said writ petition directing State not to compel the appellant to serve the State Government on the terms and conditions imposed, as submission of the bond was itself without jurisdiction. On filing Special Appeal No. 917 of 2019 by the State, the Division Bench vide impugned judgment dated 09.12.2019 allowed the same with liberty to State to recover the differential amount for the duration of MBBS course @ 18% interest. The relevant portion is reproduced below: “23. We are satisfied, therefore, that the order under appeal must be, and is accordingly, set aside. The Special Appeal is allowed. The appellants herein shall offer the respondent-writ petitioner employment, to serve in the hilly and rural areas of the State of Uttarakhand, within six weeks from today. In case the respondent-writ petitioner is willing to serve in the hilly areas of the State of Uttarakhand, it is open to her to join duty in terms of the offer of employment to be made by the State Government.
In case the respondent-writ petitioner is willing to serve in the hilly areas of the State of Uttarakhand, it is open to her to join duty in terms of the offer of employment to be made by the State Government. In case the respondent-writ petitioner does not wish to exercise such an option, and does not join duty within the time stipulated in the offer to be made by the appellants-State, it is open to the State Government to recover the differential fee amount, (i.e. Rs. 2,20,000/- minus Rs. 15,000/- per annum) for the duration of the MBBS course, along with interest @ 18% per annum, from the respondent-writ petitioner. No costs.” 3. Aggrieved, the original petitioner has preferred the present appeal. This Court issued notice on 11.12.2021 confined and limited to the point of interest without interfering with the direction of recovery. The relevant portion of the proceeding dated 11.12.2021 is reproduced as thus: “In our considered view, the impugned order whereby the Division Bench of the High Court held that it was open to the State Government to recover the differential fee amount, i.e. Rs. 2,20,000/- minus Rs. 15,000/- per annum for the duration of the MBBS course, does not call for interference. However, the interest of 18% per annum appears to be exorbitant. We, accordingly, issue notice limited to the question of the appropriateness of the interest permitted by the Division Bench of the High Court.” 4. After passing of the said order by this Court, the appellant has deposited the differential amount. Therefore, payment of interest is the only issue for determination before us. 5. We have heard the learned counsels for the parties. On consideration of submissions and material placed on record, it reveals that the appellant immediately after clearing MBBS was required to serve the hilly regions of Uttarakhand for a period of five years, or otherwise in terms of the bond furnished by her on undertaking dated 15.12.2012, Rs. 30 lacs with interest had to be paid to the Government.
On consideration of submissions and material placed on record, it reveals that the appellant immediately after clearing MBBS was required to serve the hilly regions of Uttarakhand for a period of five years, or otherwise in terms of the bond furnished by her on undertaking dated 15.12.2012, Rs. 30 lacs with interest had to be paid to the Government. Since the issue is now limited on quantum of interest and as informed, the order of the High Court has now been complied by making the payment as directed, therefore, in the facts and circumstances of the case in which a young graduate doctor has been imposed a condition to pay the amount along with interest @ 18% which is exorbitant even if compared to the bank rate. In the entirety of facts, we are of considered opinion that appellant should not be burdened with such exorbitant interest, and therefore, we deem it appropriate to reduce the rate of interest to 6% from 18%. 6. In view of the foregoing, the present appeal stands allowed in part and disposed of with the direction that the appellant who has now deposited the amount (differential fee amount), shall further deposit the interest amount at the rate of 6% p.a. within a period of two months from today. Further, on deposit of the interest amount, the MBBS degree, marksheet and other relevant documents lying with the college shall be returned to the appellant. Pending applications, if any, shall stand disposed of.