New Delhi: The Supreme Court has upheld the decision of the National Consumer Disputes Redressal Commission (NCDRC) holding Kamineni Hospitals vicariously liable for medical negligence leading to the death of a 27-year-old patient. The top court, however, reduced the compensation payable by the hospital from Rs 15 lakh to Rs 10 lakh, while retaining the Rs 5 lakh liability imposed on the treating doctor.
The case revolved around the doctrine of vicarious liability, which allows institutions to be held accountable for negligent acts of their employees — in this case, a doctor — even if the institution itself wasn’t directly negligent.
The incident, which originally came before the Andhra Pradesh State Consumer Disputes Redressal Commission (APSCDRC), involved alleged lapses in medical care that led to the patient’s death. Both the APSCDRC and NCDRC had found the treating doctor and the hospital liable, jointly awarding a compensation of Rs 20 lakh to the deceased’s family.
Kamineni Hospitals challenged the order in the Supreme Court, arguing that the decisions were unsupported by medical literature or expert opinion, and that standard medical practices were duly followed. The hospital also contended that due permissions were taken, and that the compensation amount was excessive and lacked documentary basis.
However, after reviewing the evidence, the Supreme Court ruled that there was sufficient material on record to support the findings of negligence. It reaffirmed the principle that a hospital, as an employer, can be held vicariously liable for its staff’s conduct.
“The findings thus returned by the APSCDRC and NCDRC in this regard cannot be invalidated and are affirmed,” the Court observed.
The treating doctor had already accepted the NCDRC order and deposited Rs 5 lakh. The Apex Court upheld the hospital’s liability but reduced the compensation payable by it to Rs 10 lakh, citing it as a reasonable adjustment.
“In view of the above, the decision of the NCDRC is upheld. However, the amount of compensation with regard to the liability of the appellant – hospital would stand at Rs 10 lakhs along with accrued interest,” the bench directed.
The Court instructed that the amount be disbursed to the complainant (Respondent No.1) upon an application to the Registrar of the Supreme Court.
