Non-Compete Clauses Between Hospitals and Doctors Unlawful: Madras High Court

The Madras High Court held that non-compete clauses between hospitals and doctors are unlawful as they violate the Indian Contract Act provisions against restraint of trade and agreements opposed to public policy.

The Court dismissed an arbitration petition filed by a private hospital seeking to enforce such a clause against a former doctor.

It termed the attempt a “witch-hunt” and said restricting a medical professional’s right to practise is impermissible in law.

The Court refused to grant interim relief in favour of the hospital.

[MIOT Hospitals v. Dr Balaram Palaniappan]