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2026 Supreme(Telangana) 140

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD  
GADI PRAVEEN KUMAR, J. 
Bolli Sreenu @ Srinivas And Another - Appellants 
Versus
Kathula Shivakumar And Another - Respondents
M.A.C.M.A.Nos.41 And 43 And 1597 Of 2024 
Decided On : 08-01-2026

Advocates:
Advocate Appeared:
For the Appellant : HARINATH REDDY SOMA
For the Respondent: RAMACHANDAR RAO VEMUGANTI

Compensation under Section 163-A must adhere strictly to established limits and cannot incorporate elements from fault liability, ensuring just outcomes consistent with legislative intent.

Headnote:(A) Motor Vehicles Act, 1988 - Section 163-A - Claims arising from a fatal accident involving unauthorized passengers - The Court assessed compensation under Section 163-A, ruling that benefits should not exceed established limits, while enforcing the principle of consistency in compensation calculations regarding fault liability claims. Compensation modified to Rs.5,00,000/- with 7.5% interest awarded. (Paras 16, 21, 26)

(B) Principles for assessing compensation in fatal accidents - Compensation must adhere strictly to statutory limits and cannot incorporate elements from fault liability schemes. The law's interpretation should ensure just and reasonable outcomes without exceeding legislative allowances. (Paras 21-24)

(C) Authority of the Tribunal - Courts should not exceed their jurisdiction when determining compensation and must apply legal standards consistently. (Paras 25, 26)

Facts of the case:
The appeals arose from the deaths of three individuals due to a tractor accident on 16.09.2016, which saw unauthorized passengers involved. Compensation sought was based on an alleged income of Rs.40,000/- per annum each. Respondent insurer challenged the validity of claims under Section 163-A.

Findings of Court:
Compensation awarded by the Tribunal was deemed excessive, leading to a modification lowering the amount to a consistent figure of Rs.5,00,000/- for each deceased.

Issues: The court examined the validity of claims under Section 163-A and adherence to compensation limits set within that provision.

Ratio Decidendi: The court reaffirmed the necessity to stick strictly to statutory provisions limiting compensation, while endorsing a reasonable approach to assessment, in respecting the legislative intent behind no-fault liability.

Result: Appeals allowed in part.

Table of Content
1. common judgment for related appeals. (Para 1)
2. accident details and participants. (Para 4 , 5)
3. insurance company's denial of liability. (Para 6 , 7)
4. issues framed for consideration. (Para 8)
5. compensation awarded by tribunal. (Para 10)
6. appellants' arguments on compensation errors. (Para 11 , 12 , 13 , 14 , 15)
7. clarification on compensation provisions. (Para 16 , 17)
8. respondents’ defense of tribunal's decision. (Para 18 , 19)
9. judgment considerations. (Para 20)
10. court's reasoning on interpretation of law. (Para 21 , 22 , 23 , 24 , 25)
11. modification of awarded compensation. (Para 26)
12. final conclusions and orders. (Para 27)

JUDGMENT :

GADI PRAVEEN KUMAR, J.

1. Since the claims in these appeals are occasioned out of same accident and as the same questions of fact and law have been challenged by the insurer/2nd respondent, these appeals are heard together and are being disposed of by this common judgment.

2. Heard Sri A.Rama Krishna Reddy, learned counsel for the appellants in MACMA Nos.41 and 43 of 2024 and Sri Soma Harinath Reddy, learned counsel for the appellants in MACMA No.1597 of 2024 and Sri Venuganti Ramchander Rao, learned counsel for the respondents in all these appeals.

3. The parties herein are referred to as they are arrayed in MVOP Nos.296 of 2018, 297 of 2018 and 34 of 2018 on the file of the Chairman, Motor Vehicle Accidents Claims Tribunal-cum-II Additional District Judge, Karimnagar and I Additional District Judge, Karimnagar respectively.

4. The facts leading to filing of the above MVOPs are that on 16.09.2016, Bolli Raju, the deceased in MVOP No.296 of 2018, Manchamalla Raghu, the deceased in MVOP No.297 of 2018 and Pilli Santhosh, the deceased in MVOP No.34 of 2018, along with their friend, K.Srikanth, went to Saidapur Village from Bommanapalli Village for cooling the new Tractor Mahindra Yuvo bearing T/R.No.TS 02 PTR 9704 and while returning from Saidapur to Bommanapalli, on the way at about 20.00 hours, when they reached the outskirts of Duddenapalli Village, two police persons were proceeding in the same direction on a motorcycle bearing No.AP 15 BB 3142. Respondent No.1 allowed the motorcycle rider to overtake the tractor, but, within no time he drove it in a rash and negligent manner, as a result of which, the rider and pillion rider of the motorcycle fell down in the bushes. Respondent No.1 after hitting the motorcycle, lost control and drove the tractor to the right side and fell into the agricultural well situated by the road side, due to which, the deceased in these appeals along with another died on the spot, but, the driver of the tractor jumped and ran away from the scene of offence. On receipt of the complaint, the Station House Officer, Saidapur, registered a case, vide Crime No.114 of 2016 under Sections 304-A and 337 of Indian Penal Code (IPC) against the driver of the Tractor. The age of the deceased persons in the above three appeals is 19 years, 25 years and 25 years, respectively, who were hale and healthy and working as labourers and auto driver, respectively, and were earning an amount of Rs.40,000/- per annum each as on the date of accident and contributing the same for the welfare of the claimants. The claimants filed the MVOPs under Section 163-A of the Motor Vehicles Act, 1988 (for short ‘the Act’) claiming a compensation of Rs.6,00,000/-, each.

5. The driver of the Tractor i.e. respondent No.1-Kathula Shiv Kumar, owner of the accident vehicle/Tractor, remained ex parte before the learned Tribunal.

6. The respondent No.2-Insurance Company filed counter- affidavits before the learned Tribunal denying the allegations made by the claimants in the claim petitions. It is vehemently contended therein that the respondent No.1, driver (owner) of the Tractor, did not possess valid and effective driving license, which is a fundamental breach as to the terms and conditions of the policy and that the deceased and three others were travelling unauthorizedly by sittin

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