Surgeon Naum Ciomu, who had been suffering from stress at the time, had been operating on patient Nelu Radonescu, 36, to correct a testicular malformation when he suddenly lost his temper.
Grabbing a scalpel, he sliced off the penis in front of shocked nursing staff, and then placed it on the operating table where he chopped it into small pieces before storming out of the operating theatre at Bucharest hospital.
A Romanian court has now awarded Radonescu £20,000 costs – to pay for the operation to rebuild his ruined penis using tissue from his arm – as well as 100,000 pounds in damages.
The medical costs will be paid by the hospital's insurer, but doctors' unions have criticised the decision that the money for the damages has to be paid by the doctor.
They say the move sets a dangerous precedent and that Professor Ciomu, a urologist and lecturer in anatomy, has already been punished enough after having his medical licence suspended.
They said he had been under stress and had lost his temper after he accidentally cut the man's urinary channel and 'overreacted' to the situation. He told the court it was a temporary loss of judgement due to personal problems.