Chandigarh Consumer Commission Orders Punjab Govt to Pay Full Medical Reimbursement to Retired Prosecutor

March 16, 2026 : The District Consumer Disputes Redressal Commission-II, Chandigarh has held Punjab government authorities guilty of deficiency in service for arbitrarily restricting medical reimbursement of a retired Deputy District Attorney without establishing that he had been properly informed of the applicable policy conditions.

The complaint was filed by Ajaib Singh, a retired Deputy District Attorney from Sangrur, who was diagnosed with prostate cancer in 2018 and underwent treatment at Fortis Hospital, Mohali between October 8 and December 24, 2018. He incurred medical expenses amounting to ₹4,01,951 and subsequently applied for reimbursement under the applicable government rules. However, the authorities sanctioned only ₹1,11,750 through an order dated January 22, 2021, prompting him to approach the Commission alleging deficiency in service.

In response, the Punjab government authorities contended that the reimbursement had been processed strictly in accordance with the Punjab Services (Medical Attendance) Rules, 1940. They argued that Singh had furnished an affidavit agreeing to accept reimbursement as per government-approved package rates and was therefore bound by those conditions.

After examining the record, the Commission found that while the authorities relied on policy provisions limiting reimbursement to prescribed rates, there was no evidence to show that the detailed terms, including package rates, had ever been supplied or explained to the complainant. It noted that there was nothing on record to demonstrate that Singh had knowingly and consciously agreed to restrict his claim after being fully informed of such conditions.

The Commission observed that mere submission of a standard affidavit or undertaking cannot bind a claimant unless it is shown that the contents and implications were clearly explained and accepted. It further noted that the authenticity of the medical expenses incurred by the complainant was not disputed by the authorities, and the treatment was for a serious, life-threatening illness.

Holding that the authorities acted arbitrarily in limiting reimbursement without proper disclosure, the Commission concluded that this amounted to deficiency in service.

Accordingly, the Commission partly allowed the complaint and directed the authorities to pay the balance amount of ₹2,90,201 along with interest at 9% per annum from the date of filing of the complaint (August 17, 2021) until realization. It also awarded ₹20,000 as compensation for harassment and litigation expenses.

The order was passed by a Bench comprising President Amrinder Singh Sidhu and Member B.M. Sharma on March 16, 2026.

Case Details:
Case Title: Ajaib Singh v. Director Prosecution and Litigation & Ors.
Case No: Consumer Complaint No. DC/AB1/44/CC/529/2021