( 1 ) KEEPING in mind the importance of various questions arising regarding the scope and applicability of S. 163-A which was inserted by the Parliament in the Motor Vehicles Act, 1988 (for short 'the 1988 Act') by Motor Vehicles (Amendment) Act, 1994 (Act No. 54/1994) (hereinafter referred to as 'the Amending Act') the Division Bench on 3rd of March, 2000 after formulating certain questions of law which were likely to arise and affect a large number of appeals or proceedings pending before this Court requested Hon'ble the Chief Justice to constitute a larger Bench to lay down law for its uniform applicability in the State of Karnataka and to avoid difference of opinion amongst various Benches.

( 2 ) FACTS :on 28-3-1987, one Pradeep Wadi and his younger brother Praveen Kumar Wadi were proceeding on Hero Honda motor cycle bearing registration No. CAX 9954. Praveen Kumar Wadi was driving the motor cycle and Pradeep Wadi was the pillion rider. They were proceeding from Bangalore to Tiptur. At about 8 p. m. when the motor cycle reached Manchakalkuppe, which is at a distance of 5 miles from Tumkur, a KSRTC Bus bearing registration No. MIE 9749 was found stationed on the left side of the National Highway No. 4. Another KSRTC bus bearing registration No. MEF 2128 came from the opposite direction. Praveen Kumar Wadi stopped the motor cycle and halted it just behind the Bus MIE 9749 with a view to allow the bus MEF 2128 to proceed. In the meantime, another bus plying from Bangalore to Shimoga belonging to KSRTC bearing registration No. MEF 867 attempted to overtake the shuttle bus and it dashed against Hospet-Bangalore bus and then struck the motor cycle and the shuttle bus, resulting in the accident. Praveen Kumar Wadi died at the spot and his brother Pradeep Wadi suffered injuries and became unconscious.

( 3 ) PRADEEP Wadi filed a claim petition under the Motor Vehicles Act, 1939 (for short, 'the 1939 Act') claiming compensation for the injuries suffered. Father aged 60 and mother aged 50 filed claim Petition No. 227/1987 claiming compensation for the death of Praveen Kumar Wadi. It was stated in the claim petition that the deceased was aged about 25 years at the time of the accident and he was working as a Sales Representative in Madura Coats Limited. He was unmarried. He was drawing a monthly salary of Rs. 1,660/- plus Rs. 710/- plus Rs. 25/ -. Had the remained alive and continued in service, he would have retired as a Regional Manager. After taking into consideration the promotional aspects of the deceased, the claim was put at a total compensation of Rs. 15,10,000/ -.

( 4 ) THE Tribunal determined the monthly income of the deceased at Rs. 1,237/- as on March, 1987, after deducting Rs. 500/- towards personal expenses of the deceased, the balance amount of Rs. 737/- which was rounded off to Rs. 740/- was taken as monthly loss of dependency. The annual dependency was taken at Rs. 8,880/ -. Keeping in view the age of the parents, the multiplier of 9 was adopted. The total loss under the head of loss of dependency was worked out to Rs. 79,920/ -. To this amount, a sum of Rs. 10,000/- was added towards expectation of life. A total compensation of Rs. 90,000/- was awarded. Aggrieved against the order of the Tribunal, the appeal was filed.

( 5 ) COUNSEL for the appellant had argued that the 1939 Act has been repealed and in its place Motor Vehicles Act, 1988 was enacted by the Parliament, which came into force with effect from 1-7-1989. That as per the repeal and saving S. 217 of 1988 Act, the proceedings initiated under the 1939 Act have to be continued under 1988 Act. For this he has relied upon the judgment of the Supreme Court in AIR 1997 SC 412 (Gajraj Singh v. State Transport Appellate Tribunal ). That in 1988 Act, S. 163-A has been introduced with effect from 14-11-1994 providing a structural formula for grant of compensation in the nature of no fault liability. He prayed that the appellants be granted compensation a