Hospitals cannot recover damages from doctors who leave without serving notice period

The Bombay High Court has dismissed a private hospital’s claim for damages after a senior doctor resigned with seven days’ notice instead of the three months required under his contract. The Court held that damages under Section 73 of the Indian Contract Act require proof of actual loss, and the hospital had not shown that the doctor’s departure caused the claimed business loss. The judgment reinforces that a contractual breach does not automatically justify damages. Hospitals and other employers seeking compensation for premature departures will need to show actual, provable loss and evidence of reasonable steps taken to reduce that loss.