Willing to pay Rs 25 lakh as compensation for faulty hip implants: J&J

On hearing the argument, the court issued a notice to the Centre and directed the ministry concerned to take instruction by May 2. It also orally asked them not to take any steps against J&J.

The HC was hearing J&J’s plea challenging the Centre’s formula for the grant of compensation, including its recent decision directing the company to pay compensation of Rs 65 lakh and Rs 74 lakh to two affected patients.

J&J, in its petition filed in December 2018, had challenged a press release issued by the Health Ministry, asking the company to pay compensation to affected patients as determined by the reports of two expert committees formed to examine the issues relating to its faulty hip implants.

The two committees were formed under Dr Arun Kumar Agarwal, former dean and professor of ENT at Maulana Azad Medical College, New Delhi, and Dr R K Arya, director, Sports Injury Centre. While the Agarwal Committee examined the issues relating to faulty Articular Surface Replacement (ASR) hip implants, the Arya committee determined the quantum of compensation.

The compensation formula is based on the percentage of disability, age factor, and risk factor, and was accepted by the government, as per a press release issued on November 29, 2018. Applying the formula, the patients would get as much as Rs 1.2 crore each and an additional Rs 10 lakh for “non-pecuniary” losses.