A division bench of Justices D Y Chandrachud and R G Ketkar, however, directed the government and the civic body to appoint super speciality doctors only on posts like Assistant Professors or Super Speciality Medical Officers, which are commensurate to their qualification.
"Students who complete their medical condition from state run or civic hospitals by paying subsidised fees have to perform public service," the court said.
The bench was hearing petitions filed by over 130 doctors challenging the government resolution.
The petitioners' counsel V M Thorat had argued that the Supreme Court has in a judgement delivered in 1984 termed the super speciality degree holder doctors as national assets.
Thorat had further argued that even if the court holds that they cannot be exempted from serving the bond, they should be given posts befitting their qualification and should be paid commensurate salary fixed against those posts.
Government pleader Sandip Shinde opposed the plea for exemption stating that state government spends sum of Rs 3.71 lakh on every medical student annually at very subsidised rates and therefore the government is entitled to require them serve bond period of one year.
Accepting the government's contentions, the bench observed that the condition requiring them to serve the bond for one year was based on valid rationale and it cannot be regarded as arbitrary or unreasonable.