शुण्डा means trunk (of an elephant) and सूचि needle.
Trunk is large, thick and needle is small. If somebody uses thick trunk of an elephant to find the needle lost, that person's behaviour becomes a laughing stock, a matter of derision. This Nyaya must have originated from this.
This Nyaya gives us much inspiration and its scope i.e. the scope of inspiration that we get from it is also very wide. Here we will talk about medical field. Suppose there is a diseases. He is suffering from a very ordinary disease, medicine for that disease is also easily available and that medicine can cure the patient easily. Still however, some physician foolishly talks about surgery, he becomes a subject of joke, derision among other physicians.