( 1 ) THE respondent, S. Venkateswara rao, owned a lorry, bearing No. APK-720. It was engaged for carrying empty milk-cans from Pamarru Chilling centre to Yelamarru village. It was insured with the New India Assurance company Ltd. , Vijayawada. It was being driven by one B Krishna Reddy, the driver employed by the respondent.

( 2 ) ON 3-8-1973, while carrying the empty milk-cans, the driver, B. Krishna Redddy, took in the deceased, moturi Hanumantha Rap, as a passenger in the lorry. The deceased also loaded a few manure bags into the lorry. The deceased was sitting in the cabin on the extreme left. Another woman was also travelling ae a passenger, but in the rear. At about 3. 15 p m the lorry met with an accident, resulting in the death of M. Hanumantha Rao and the woman travelling in the rear of the lorry. The legal representatives of the deceased, Moturi hanumantha Rao, thereupon, instituted 0 P No 9/1974, claiming an amount of rs. 25,000/- by way of compensation. The 0 P was filed against the owner of the vehicle (respondent herein), and the insurance Company, The claimants submitted that the lorry was driven by the driver rashly and negligently, resulting in th