( 1 ) THIS reference has been placed before this Full Bench as per the order of the Chief Justice, dated 14. 10. 2003, and has come up before us today. The other connected matters referred involve the same question of law and as agreed they are also taken up together for consideration.

( 2 ) FOR the sake of convenience, the factual matrix of the case with reference to essential facts which are not in dispute, giving rise to this reference can be stated with reference to M. F. A. No. 4552 of 1997 and Cross-Appeal No. 11 of 1998 as follows: in a motor accident that occurred on 15. 4. 1993 at 21:30 hours on Bagalkot to guddankeri Road, due to collision of a k. S. R. T. C. bus bearing No. MEF 8529 and a lorry coming in opposite direction, arun alias Aravind, aged 31 years, who was travelling as a passenger in the bus, sustained grievous injuries to his right hand and right elbow leading to amputation of right hand above elbow on 17. 4. 1993. The injured filed a claim petition under section 166 of the Motor Vehicles Act, 1988, (for short, the Act) before M. A. C. T. , Bijapur (M. V. C. No. 603 of 1993), seeking compensation of Rs. 8,15,000 from respondents, the driver