Supreme Court Sets Aside High Court Order on Medical Reimbursement for Non-Life Saving Drug. The court found that the imported drug Norditropin was not classified as life saving, thus justifying the Board's refusal to reimburse expenses.

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Case Note & Summary

The dispute arose between the Punjab State Electricity Board and Shri Jasbir Singh regarding the reimbursement of medical expenses for an imported drug, Norditropin, prescribed for the respondent's son suffering from a chronic disease. The Board rejected the claim for reimbursement amounting to Rs. 3,13,200, citing its policy against reimbursing expenses for imported medicines. The respondent filed a writ petition in the High Court, which ruled in favor of reimbursement, noting the seriousness of the son's condition and the necessity of the imported drug. The Supreme Court, upon appeal, examined the relevant government policies and medical certificates, concluding that the drug was not classified as life saving. The court emphasized that reimbursement is only permissible for drugs deemed essential to save a patient's life, and since Norditropin did not meet this criterion, the Board's decision was upheld. The High Court's ruling was set aside, and the writ petition was dismissed, with no costs awarded.

Headnote

A) Administrative Law - Medical Reimbursement - Definition of Life Saving Drug - Government policy on reimbursement of imported drugs - The court held that reimbursement is permissible only for drugs considered essential to save a patient's life, and since Norditropin was not classified as such, the Board's refusal to reimburse was justified. The High Court's assumption that it was a life saving drug was erroneous (Paras 1-3).

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Issue of Consideration

Whether the imported drug Norditropin qualifies for reimbursement under the Board's policy as a life saving drug.

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Final Decision

The Supreme Court allowed the appeal, set aside the High Court's judgment, and dismissed the writ petition, ruling that the Board's refusal to reimburse was justified as Norditropin was not a life saving drug.

Law Points

  • Reimbursement policy
  • life saving drug definition
  • chronic disease treatment
  • imported medicine
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Case Details

1999 LawText (SC) (02) 28

1999-02-12

M. Srinivasan, S. N. Phukan

Punjab State Electricity Board

Shri Jasbir Singh

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Nature of Litigation

Writ petition for reimbursement of medical expenses

Remedy Sought

Reimbursement of Rs. 3,13,200 for imported drug

Filing Reason

Claim rejected by the Board based on policy against imported medicines

Previous Decisions

High Court allowed the writ petition for reimbursement

Issues

Definition of life saving drug Applicability of reimbursement policy

Submissions/Arguments

The respondent argued for reimbursement based on the necessity of the drug for treatment. The Board maintained that the drug was not life saving and thus not eligible for reimbursement.

Ratio Decidendi

Reimbursement for imported drugs is permissible only if the drug is classified as life saving under the applicable government policies.

Judgment Excerpts

The High Court, however, allowed the writ petition observing that the respondent’s son had a serious problem. It becomes obvious from joint reading of various instructions that reimbursement of the drugs... is permissible only where the imported drug is considered as absolutely essential to 'save the life of the patient'.

Procedural History

The respondent's claim for reimbursement was rejected by the Board, leading to a writ petition in the High Court, which ruled in favor of the respondent. The Board appealed to the Supreme Court.

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