A former Gurkha has won £123,000 compensation from the Ministry of Defence after he was shot on an exercise.

Padam Limbu, from Folkestone, has been sleeping on the floor of a friend's house since being discharged from the army. He was hit in the leg by a British bullet while training in 2002.

He had put in a claim for more than £200,000 but was happy with the settlement.

One of the men who had campaigned hard for Mr Limbu was Folkestone town councillor Dhan Gurung, who said: "This a victory for a single soldier, a genuine case but we have thousands of similar cases which the MOD is trying to obstruct.

"I took his case forward last year with huge pressure from the public in Folkestone and local media, everyone supported the case and he has won.

"This has not ended the fight – there are others trying to gain the legal right to stay in this country, equal pensions and benefits. Like Padam Limbu, they should not have to go through this long process."

Soldiers who retired before 1997 have no right of residency and their pensions are worth less.

Mr Limbu was a rifleman with the 2nd Battalion Royal Gurkha Regiment, based at Shorncliffe, and had served for 13 years.

Addressing at meeting of Shepway District Council on Wednesday Cllr Peter Carroll, who has long campaigned for the Gurkhas, said: "They gave him [Mr Limbu] £100 and told him to leave. They even gave him a letter telling him he could not appeal to any council for help."

Mr Limbu’s injuries mean he has trouble climbing stairs and running, and his domestic situation has not helped him recover.