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Supreme Court of India

PUNJAB STATE ELECTRICITY BOARD AND ANRversusSHRI JASBIR SINGH

Citation
1999 INSC 60
Decided
12 February 1999
Disposal
Appeal(s) allowed

Holding

Reimbursement of imported drugs is permissible only when the drug is absolutely essential to save the patient's life; Norditropin was not a life‑saving drug, so no reimbursement was due.

Summary

The respondent's son suffered a pituitary gland disorder and was prescribed the imported drug Norditropin, for which the Punjab State Electricity Board (PSEB) denied reimbursement of Rs. 313,200. The respondent filed a writ petition, and the Punjab & Haryana High Court directed reimbursement, treating the drug as a life‑saving medicine. PSEB appealed to the Supreme Court, arguing that reimbursement of imported medicines is allowed only when the drug is essential to save the patient’s life, as per Government of India instructions dated 21‑July‑1972 and Punjab instructions dated 1‑Jan‑1991. The Supreme Court examined the certificates and instructions, finding that Norditropin was not a life‑saving drug and the disease, though chronic, was not life‑threatening. Consequently, the Board was justified in refusing reimbursement, and the High Court’s direction was set aside. The appeal was allowed and the writ petition dismissed.

Issues considered

  • Whether reimbursement of imported medicines is permissible under the applicable government instructions when the drug is not a "life saving drug".
  • Whether a chronic disease qualifies for reimbursement of imported medicines under the 1991 Punjab instructions.
  • Interpretation of the Government of India instructions dated 21‑July‑1972 and Punjab instructions dated 1‑Jan‑1991 regarding reimbursement of imported drugs.

Subjects

service lawmedical reimbursementimported medicineslife saving druggovernment instructionschronic diseasePunjab State Electricity BoardSupreme Courtwrit petition

Judgment

           PUNJAB STATE ELECTRICITY BOARD AND ANR                               A
                                      v.
                           SHRI JASBIR SINGH

                           FEBRUARY 12, 1999

                 [DR. A.S. ANAND, CJ., M. SRINIVASAN                            B
                         AND S.N. PHUKAN, JJ.]

         Service Law :

         Medical reimbursement-Imported medicines-Government of India C
  instructions dated 21.7.1972--lnstrnctions dated 1.1.1991 issued by Govern-
  ment of Punjab-Applicability of-Respondent's son suffering from pituitary
  glands--lmport of Norditropin injection-Claim for reimbursement of pur-
  chase of injection--Reje~tion by appellant Boartf-Writ-Direction by High
  Court to reimburse the amount with interest-Appeal preferred by
  Board-Held, under the instrnctions reimbursement of imported drng is per- D
  mitted only where the imported d!Ug was a "life saving d!Ug''-ln this· case
  drng in question was not essential for "saving the life of the patient"-That the
· disease of the patient was a "chronic disease" does not mean that it was "life
  threatening''-The Board, was, therefore, perfectly justified on the basis of
  instrnctions referred to above and its policy decision, to decline to reimburse E
  the medical expenses incurred on the purchase of the imported d!Ug Nor-
  ditropin, being not a "life saving drng''-Since, the High Court wrongly as-
  sumed the drng to be a "life saving drng" it clearly fell in error in issuing the
  direction for reimbursement of the amount.

         CIVIL APPELLATE JURISDICTION : Civil Appeal No. 793 of                  F
 1999.

      From the Judgment and Order dated 9.7.97 of the Punjab & Haryana
 High Court in C.W.P. No. 3607 of 1997.

         A.K. Goel and Ms. Sheela Goel for the Appellants.                      G
         P.N. Puri for the Respondent.

         The following Order of the Court was delivered :

         Leave granted.                                                         H
                                      631
    632                  SUPREME COURT REPORTS                   [1999] 1 S.C.R.
A          The respondent's son had problem of growth in his height which was,
    in medical terms, attributed to disease of pituitary glands. Injection Nor-
    ditropin was prescribed for treatment. The claim of the respondent for
    reimbursement of the medical expenses incurred on purchase of the said
    injection to the tune of Rs. 3,13,200 was rejected by the appellant Board.
B   The respondent, thereupon, filed a writ petition seeking a direction for
    reimbursement of the said amount with interest in the High Court. The
    writ petition was resisted primarily on the ground that the policy of the
    Board was not to reimburse exp.:nses on "imported medicines".


C       The High Court noticed that the drug in question was not available
  in India and that the same was an imported drng. The High Court, however,
  allowed the writ petition observing that the respondent's son had a serious
  problem and that since the imported drug had been duly prescribed by the
  doctor at the Post Graduate Institute of Medical Sciences, Chandigarh the
  respondent was entitled to be reimbursed for the expenses incurred in
D purchasing the imported drug. The Bench observed:

                "In fact, instances are not lacking where people have gone
            abroad for treatment and the expenses have been paid by the State.
            Surely, if a particular medicine is not available in India and has to
E           be imported, nobody can help. A poor patient has to import the
            medicine and take it. This is precisely what appears to have
            happened in the present case. Still further no reason whatsoever
            has been advanced in the written statement to indicate as to why
            a person is not entitled to reimbursement of expenses incurred by
F           him on account of the import of medicine. It can be imagined that
            if a drug is available in India and yet a person chooses to import
            a particular medicine and spends money which is avoidable, the
            competent authority may take the view that no re-imbursement
            should be allowed or that it should be confined to the expense
G           which the patient would have incurred on getting the drug within
            the country. However, it is not even suggested in the present case
            that the drug is available in India. In such a situation, it appears
            fair to assume that this life saving drug had to be imported. That
            being so, there would be no reasonable basis for declining to
H           reimburse the expenses."
          P.B. STATE ELECTRICITY BOARD v. JASBIR SINGH                   633

     Aggrieved by the direction issued by the High Court to re-imburse         A
the amount together with interest, the Board is in appeal by special leave.

      We have heard learned counsel for the parties and examined the
record.

       It is an admitted case of the parties that the policy of the Government
                                                                               B
of India, which has also been adopted by the Government of Punjab and
the Board, is that where the drugs manufactured in India have proved
ineffective and the prescription of some imported life saving drug is
imperative for "saving the life of the patient", such a drug can be prescribed
and the patient can procure the same either by placing an order with the c
foreign firm or .otherwise and when that is done and the certificate is issued ·
by the Chief Medical Officer of the District/Medical Superintendent of the
hospital to the effect that he is satisfied that the drug in question is
considered absolutely essential to "save the life of the patient", reimburse-
ment of costs of the drug, excluding the packaging charges, customs duty D
from charges etc. is permissible. The High Court, however, appears to have
assumed that the drug in question was a "life saving drug". The certificate
issued by the Post Graduate Institute of Medical Sciences, Chandigarh
which is available on the record at page 32, shows that the disease was not
life threatening and Norditropin injection is "not a life saving drug". The
                                                                                 E
submission of learned counsel for the respondent that since the son of the
respondent was suffering from a chronic disease, he was entitled to reim-
bursement of the medical expenses including the expenses incurred on the
imported medicine on the basis of the instructions dated 1.1.1991 does not
appear to be correct. A careful perusal of the instructions dated 1.1.91
shows that it only lists certain chronic diseases, the treatment for which can F
be done either as an ovt-door patient i.e. without being admitted in the
hospital or by admission in the hospital. Vide para 2 of those instructions,
no reimbursement limit has been fixed as an out-door patient for the
emphfyees and pensioners of the State Governments. These general in-
structions, however, h.ave to be read along with the specific instructions G
contained in the Government of India instructions d: .ted 21.7.1972 and the
instructions issued by the Board in 1997 declaring as a policy of the Board
that reimbursement of imported drug shall be permitted only where the
imported drug is a "life saving drug". It becomes obvious from a joint
reading of various instructions (supra) that reimbursement of the drugs, H
    634                   SUPREME COURT REPORTS                   (1999) 1 S.C.R.
A whether imported by the patient himself or purchased from a chemist who
   has imported those drugs, is permissible only where the imported drug is
   considered as absolutely essential to "save the life of the patient". It is not
   in dispute that the drug in question was not essential for "saving th~ life of
   the patient". That the disease of the patient was a "chronic disease" does
B not mean that it was "life threatening" in view of the unambiguous certifi-
   cate issued by the PGI, as referred to above. The Board was, therefore,
   perfectly justified on the basis of instructions referred to above and its
   policy decision, to decline to reimburse the medical expenses incurred on
 . the purchase of the imported drug Norditropin, being not a "life saving
   drug". Since, the High Court wrongly assumed the drug to be a "life saving
C drug" it clearly fell in error in issuing the direction for reimbursement of
   the amount. The judgment of the High Court under the circumstances
   cannot be sustained.

        This appeal, therefore, succeeds and is allowed. The judgment of the
D High Court is set aside. The writ petition, filed before the High Court shall
  stand dismissed. No costs.

    T.N.A.                                                       Appeal allowed.




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