Justice N Anand Venkatesh described such clauses as “unlawful on the face of it”. – The Court asked if hospitals are running a business or a hospital. – The case involves MIOT Hospitals’ petition against Dr Balaraman Palaniappan.

by Sekar Reporter · February 18, 2026

[18/02, 19:23] sekarreporter1: [18/02, 19:22] sekarreporter1: https://www.barandbench.com/news/litigation/are-you-running-a-business-or-a-hospital-madras-high-court-slams-non-compete-clauses-in-doctor-contracts
[18/02, 19:22] sekarreporter1: Are you running a business or a hospital? Madras High Court slams non-compete clauses in doctor contracts
The Court said that such restrictive covenants appear “unlawful on the face of it” and questioned how hospitals could enforce them.
Doctors, Madras High Court
Doctors, Madras High Court
S N Thyagarajan
S N Thyagarajan
Published on:
18 Feb 2026, 1:20 pm
2 min read
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The Madras High Court recently made strong oral observations questioning the legality of non-compete and non-solicitation clauses imposed by hospitals on doctors. [MIOT Hospitals v. Dr Balaram Palaniappan]

Justice N Anand Venkatesh made the remarks while hearing MIOT Hospitals’ petition seeking appointment of an arbitrator against Chennai-based doctor Balaraman Palaniappan.

Justice N Anand Venkatesh
Justice N Anand Venkatesh
[18/02, 19:23] Meta AI: The Madras High Court has slammed non-compete clauses in doctor contracts, questioning their legality and asking if hospitals are running a business or a hospital. Justice N Anand Venkatesh made these remarks while hearing a petition by MIOT Hospitals seeking appointment of an arbitrator against Dr Balaraman Palaniappan. The Court described such restrictive covenants as “unlawful on the face of it” and emphasized patient choice, stating, “The client can go to the person whom he trusts”. ¹

Follow-up questions:
– What are the implications of the Madras High Court’s stance on non-compete clauses for hospitals and doctors?
– Have there been similar rulings on non-compete clauses in other Indian states?
[18/02, 19:23] Meta AI: Here are the key points:

– Madras High Court questioned the legality of non-compete and non-solicitation clauses imposed by hospitals on doctors.
– Justice N Anand Venkatesh described such clauses as “unlawful on the face of it”.
– The Court asked if hospitals are running a business or a hospital.
– The case involves MIOT Hospitals’ petition against Dr Balaraman Palaniappan.
– The Court emphasized patient choice, stating, “The client can go to the person whom he trusts”.