IMPORTANT POINT
The court clarified that claims under Section 163-A of the Motor Vehicles Act are limited to no-fault liability, while Section 166 allows for claims based on negligence, impacting the compensation awarded.

JUDGMENT :

Ravi Nath Tilhari, J.

This appeal under Section 173 of the Motor Vehicles Act, 1988 (for short, “the M.V.Act”) has been filed by the New India Assurance Company Limited challenging the award of the Motor Claims Tribunal-District Judge, Ongole (in short the Tribunal) dated 03.10.2007 in M.V.O.P.No.1 of 2006 awarding compensation of Rs.36,17,000/- to the claimants – respondents 1 to 3 with interest @ 7.5% p.a from the date of the petition till date of realisastion with proportionate costs and the fee.

2. The claim petition was filed by the claimants-respondents 1 to 3 herein claiming the compensation of Rs.45,00,000/- for the death of one T. Ravi Sankar (the deceased in short) in the road accident dated 16.10.2005 while the deceased along with his friends was going to Shiridi from Pune, Maharashtra State by Qualis vehicle bearing No.MH 14 AE 5242 and when they crossed Rahuri town, they met in an accident with lorry bearing No.MH 41 G 5023 (offending vehicle) owned by the present 5th respondent and being driven by the present 4th respondent and insured with the appellant (2nd respondent in O.P), which was coming from the opposite direction and was being driven in a rash and negligent manner. In the said accident, the inmates of the vehicle died on the spot including the cleaner of the lorry. It was pleaded that the deceased was aged about 25 years. He was software engineer earning Rs.38,828/- per month.

3. Respondents 1 and 3 in O.P i.e present respondents 4 and 5 remained ex parte.

4. The insurance company (respondent No.2 in M.O.P) filed written statement denying all the material allegations. It was denied that the driver of the lorry was rash and negligent in driving the lorry. It was pleaded that the accident occurred due to the negligent driving of the Qualis vehicle. It was also pleaded that the owner and the insurer of the Qualis vehicle were necessary parties. The claim was said to be excessive.

5. The Tribunal framed the following issues:

“1. Whether the deceased died due to rash and negligent driving of the driver of the respondents 1 and 3 lorry?

2. What is the correct age and income of the deceased as on the date of the accident?

3. Whether the petitioners are entitled for compensation, if so, to what extent and from whom?

4. To what relief?”

6. On behalf of the claimants, the P.W.1 Telukutla Lakshmi, P.W.2 F. Nazeer, P.W.3 R. Chandrakant Shinde were examined, and Ex.A.1 inquest panchanama (Commission referred as Ex.A.10), Ex.A.2 P.M certificate (Commission referred as Ex.A.11), Ex.A.3 dated 08.03.2005 appointment letter (Commission referred as Ex.A.12), Ex.A.4 true copy of Rekha (Commission referred as Ex.A.16), Ex.A.5 true copy of appointment letter (Commission referred as ex.A.17), Ex.A.6 true copy of pay slip for the month of September, 2005, Ex.A.7 Provisional certificate (Computer application), Ex.A.8 provisional certificate of T. Ravi Sankar Reddy, Ex.A.9 xerox copy of Intermediate certificate (Computer application), Ex.A.10 xerox copy of Secondary School Certificate, were marked.

7. On behalf of the respondent in M.V.O.P, no witness was examined and any document was also not marked.

8. The Tribunal recorded the finding that P.Ws.1 and 2, the eye witnesses, proved the accident and that the offending vehicle was being driven in a rash and negligent manner by its driver which smashed, the Qualis and inmates of the Qualis died on the spot including the cleaner of the lorry.

9. The Tribunal determined the monthly earnings as Rs.30,000/-. After deduction of 1/3rd towards personal expenses and applying the multiplier of =15‘, it determined the total loss of dependency as Rs.36,15,000/- and adding to that, the funeral expenses of Rs.2,000/-, it awarded an amount of Rs.36,17,000/- with interest @ 7.5% per annum from the date of petition till date of realization with proportionate costs and other fees.

10. Learned cou