New Delhi: The Delhi High Court Monday rejected Johnson & Johnson’s plea for a stay on the Rs 74 lakh payout ordered by the Narendra Modi government for a recipient of the American pharma major’s faulty hip implants.
The high court order has come days before the Centre’s deadline for the payout — 10 April — expires.
However, the court is said to have asked the government to refrain from penalising the company until the next hearing on Johnson & Johnson’s plea challenging the Rs 74 lakh payout.
“The company was afraid… as it was on the brink of missing the deadline to pay the compensation and the plea for a stay on the government’s decision has also been refused,” said an advocate who was present in court Monday, requesting anonymity.
“The matter was discussed in court and the judge verbally tried to dissuade the government from taking further action until the next hearing,” the advocate added.
The plea will next be taken up on 2 May, when the court will also hear the main matter, the company’s case against the “clandestine” formula used by the Modi government to calculate compensation for the recipients of faulty hip implants who were either injured by them or had to go for subsequent corrective surgery.
Replying to ThePrint’s query on the order, Johnson & Johnson said that “it is looking for a positive resolution of the matter”.
“The company believes the formula for compensation needs to be within a fully-transparent framework arrived at through due process… However, the matter is sub judice, [and] we won’t be able to comment further,” the spokesperson added.
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J&J afraid of government’s further actions
The oral persuasion of the court, said a subject expert, is unlikely to necessarily guard the company against “repercussions”.
“If the oral persuasion isn’t reiterated in the written order, the company faces the risk of repercussions for failing to obey clear directions given by the government,” said Malini Aisola, co-convenor of the All India Drug Action Network (AIDAN), a network of NGOs working to ensure healthcare access to all, who was also present during the hearing.
The official copy of the order was yet to be uploaded on the high court website at the time of publishing this report. The order directing the company to pay the compensation within 30 days was dated 8 March. The order was sent to the company by email on 11 March. The 30-day deadline was therefore calculated from 11 March.
In court Monday, Johnson & Johnson offered to pay the patient in question Rs 25 lakh as compensation, but the offer was refused. However, on the company’s plea against the compensation formula, the court issued notice to the Centre to discuss the matter with Johnson & Johnson.
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