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Indian court rules doctor non-compete clauses unenforceable, upholding medical freedom.
The Madras High Court ruled that non-compete and non-solicit clauses in doctor-hospital contracts are unenforceable, calling them against public policy and violating India’s Contract Act.
In a landmark decision, the court dismissed a hospital’s bid for arbitration against a cardiothoracic surgeon who left to join a competitor, rejecting restrictions on where he could practice.
The judge emphasized doctors’ professional independence, stating hospitals cannot treat them like factory workers.
The court ordered the hospital to pay ₹1 lakh in costs to the doctor, criticizing the use of restrictive clauses copied from tech industry contracts and affirming that medical professionals must be free to serve patients without undue limitations.
El tribunal indio dictamina que las cláusulas de no competencia de los médicos son inaplicables, manteniendo la libertad médica.