Supreme Court Upholds Medical Negligence Ruling but Reduces Compensation in Kamineni Hospitals Case

The Supreme Court of India recently delivered a significant judgment in the case of The Managing Director, Kamineni Hospitals versus Peddi Narayana Swami & Anr., upholding the findings of medical negligence by the National Consumer Disputes Redressal Commission (NCDRC) but reducing the compensation amount. The case revolved around the death of a 27-year-old B.Tech graduate due to alleged medical negligence at Kamineni Hospitals. Below is a detailed narrative of the case, the arguments presented, and the court’s reasoning.

The appellant, Kamineni Hospitals, challenged the NCDRC’s order dated 26.08.2022, which held the hospital and its doctor, Dr. J.V.S. Vidyasagar, vicariously liable for medical negligence and imposed a total compensation of Rs. 20 lakhs (Rs. 15 lakhs on the hospital and Rs. 5 lakhs on the doctor). The hospital contended that there was no medical negligence, as the doctors had followed standard procedures and due care. They argued that the compensation amount was excessive and lacked supporting evidence.

The respondents, the parents of the deceased, supported the NCDRC’s decision, emphasizing that their son was a young, qualified professional with a promising future. They argued that the compensation was justified given the loss of life and the financial support he provided to the family. The Supreme Court, comprising Justices B.R. Gavai and Augustine George Masih, carefully examined the evidence and submissions.

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The court observed: “Having considered the submission made by the Counsel for the parties and upon going through the records of the case, it is apparent that there is ample evidence as well as records to indicate that there was indeed medical negligence at the end of the Appellant and Respondent no.2.” This observation affirmed the NCDRC’s findings of negligence.

However, the court addressed the compensation amount, noting: “We are thus of the considered view that the amount of Rs.10 lakhs as stands deposited in this Court by the Appellant along with the accrued interest thereon would serve the interest of justice.” The court reduced the hospital’s liability from Rs. 15 lakhs to Rs. 10 lakhs, including accrued interest, while upholding the Rs. 5 lakhs compensation imposed on the doctor.

The judgment underscores the importance of accountability in medical practice while balancing the financial implications on healthcare institutions. It serves as a precedent for future cases involving medical negligence and compensation claims, highlighting the need for evidence-based assessments of liability and damages.

Petitioner Name: The Managing Director, Kamineni Hospitals.
Respondent Name: Peddi Narayana Swami & Anr..
Judgment By: Justice B. R. GAVAI, Justice AUGUSTINE GEORGE MASIH.
Place Of Incident: Andhra Pradesh.
Judgment Date: 22-04-2025.
Result: partially allowed.

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