Delhi HC upholds full Covid medical reimbursement to retired railway employee

September 28, 2025

New Delhi: The Delhi High Court has dismissed a writ petition filed by the Union government challenging a Central Administrative Tribunal (CAT) order directing full reimbursement of medical expenses to a retired railway employee for Covid-19 treatment.

Court Upholds CAT’s Order

A Bench of Justices Navin Chawla and Madhu Jain upheld the CAT’s February 13 order in favour of Ayodhya Prasad, a former Office Superintendent-II who retired from Banaras Locomotive Works in 2004. The court observed that medical reimbursement is not a matter of “concession or charity” but an enforceable right.

Background of the Case

Prasad, covered under the Retired Employees Liberalised Health Scheme (RELHS), was admitted to Apollo Hospital in Ahmedabad in April 2021 with severe Covid-19 infection. His total treatment bill amounted to Rs 7,46,657, but the Railways reimbursed only Rs 3,92,939, citing ceilings fixed by the Ahmedabad Municipal Corporation.

After his appeals for the balance were rejected, he approached the CAT, which directed reimbursement of the remaining Rs 3,53,718. The Union government subsequently challenged this order before the Delhi High Court.

Court Rejects Centre’s Arguments

The Bench rejected the Centre’s reliance on Ahmedabad Municipal Corporation rate caps, stating that reimbursement cannot be curtailed in emergency medical situations.

“Once it is undisputed that the respondent had to undergo treatment during a medical emergency, the rigidity of rate fixation cannot stand in the way of full reimbursement,” the court observed.

The Bench emphasized that medical reimbursement flows from the employer’s duty in a welfare state and cannot be denied on technical grounds, citing the Supreme Court’s ruling in Shiv Kant Jha v. Union of India.

Railways Directed to Pay Balance with Interest

Refusing to interfere with the CAT’s order, the Delhi High Court directed the Railways to release the balance amount along with 8% interest per annum within eight weeks.

“The petitioners shall release the balance payment of the medical expenses to the respondent, along with interest at the rate of 8 per cent per annum, within a period of eight weeks,” the Bench ordered.