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2025 Supreme(Online)(Tel) 27981

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Suddala Chalapathi Rao, J
Pathipati Chennaiah – Appellant
Versus
V.N.S. Transport – Respondent
M.A.C.M.A.No.356 of 2022



Advocates:
For the Appellants/Petitioners: Kuldeep Jadhav, N.Mukunda Reddy
For the Respondents: P.Satya Manjula

An application for compensation under Section 163-A of the Motor Vehicles Act, 1988 is maintainable by legal representatives of a deceased driver even if the driver was the tortfeasor, provided the vehicle is covered by a valid insurance policy, without the requirement to prove driver negligence.

Headnote:(A) Motor Vehicles Act, 1988 - Section 163-A - Employees’ Compensation Act, 1923 - Claim for compensation by legal heirs of deceased driver - Maintainability - Section 163-A of MV Act allows compensation on a structured formula basis without the need to prove negligence - An insurer cannot raise the defense of negligence in a proceeding under Section 163-A - A package policy covering the owner and the driver extends benefits to the driver even if they are the tortfeasor - The Tribunal erred in directing claimants to approach authorities under the Employees’ Compensation Act, 1923, when the claim under the Motor Vehicles Act was maintainable. (Paras 12, 13, 14, 15, 17, 21)

(B) Evidence - Burden of proof - Driving license - The burden lies on the insurance company to establish that the insured knowingly allowed a person without a valid license to drive - In the absence of cogent evidence of a fundamental breach of policy conditions by the owner, the insurer cannot escape liability. (Paras 19, 20)

(C) Quantum of Compensation - Structured Formula - Under Section 163-A, the annual income for the purpose of compensation, where no evidence of exact earnings is placed, can be capped at the threshold mentioned in Schedule II - Future prospects are excluded in claims filed under Section 163-A - Multiplier method applied as per Schedule II. (Paras 23, 24, 25)

Facts of the case:
The deceased, a driver, died in a road accident while driving a lorry in the course of his employment. The legal representatives (father and sister) filed a claim petition under Section 163-A of the Motor Vehicles Act, 1988. The Tribunal dismissed the claim, reasoning that the deceased was the tortfeasor and that the claimant should have instead sought relief under the Employees’ Compensation Act, 1923.

Findings of Court:
The court held that the Tribunal improperly dismissed the claim, as Section 163-A is a beneficial provision that does not require proof of fault/negligence. The court determined the dependents were entitled to compensation calculated via the structured formula provided in Schedule II of the Motor Vehicles Act, awarding Rs.4,57,839/-.

Issues: 1) Whether a claim under Section 163-A of the Motor Vehicles Act is maintainable when the deceased was the driver and allegedly the tortfeasor? 2) Whether the claimants should have approached the authority under the Employees’ Compensation Act, 1923?

Ratio Decidendi: An application under Section 163-A of the MV Act is maintainable even if the deceased was the tortfeasor, provided the vehicle is covered by a valid insurance policy (specifically a package policy). The insurer cannot introduce the defense of negligence in such summary proceedings, as this would defeat the legislative intent of providing expeditious compensation.

Result: Appeal allowed; the award of the Tribunal was set aside and compensation of Rs.4,57,839/- was granted along with interest.

Table of Content
1. the tribunal's dismissal of the claim on the ground of fault liability rather than awarding compensation under section 163-a. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. maintainability of section 163-a claims despite driver's negligence and absence of evidence of license invalidity. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
3. computation of compensation based on structured formula under schedule ii without future prospects. (Para 22 , 23 , 24 , 25 , 26 , 27)

SUBMITTED FOR APPROVAL:

1. Whether Reporters of Local newspapers may be allowed to see the Judgments? Yes/No

2. Whether the copies of judgment may be marked to Law Reporters/Journals Yes/No

3. Whether Their Ladyship/Lordship wish to see the fair copy of the Judgment? Yes/No

_________________________________

SUDDALA CHALAPATHI RAO, J

M.A.C.M.A.No.356 of 2022

21st November, 2025

Counsel for the Appellants : Sri Kuldeep Jadhav, learned counsel representing Sri N.Mukunda Reddy

Counsel for the Respondent No.2 : Smt. P.Satya Manjula

Gist:

Head Note:

CITATIONS:

1. (2012) 2 Supreme Court Cases 356

2. Civil Appeal No.9694 of 2013, dt.24.11.2017

3. (2004) 3 SCC 297

4. (2017) 16 SCC 680

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

JUDGMENT:

1. The present appeal is filed by the appellants-claimants assailing the order passed by the Chairman, Motor Accidents Claims Tribunal-cum-Special Sessions Judge for SCs/STs (POA) Act Cases-cum-VII Additional District and Sessions Judge, Nalgonda (for short, ‘the Tribunal’) in O.P.No.366 of 2016, dated 22.02.2022.

2. The parties hereinafter will be referred to as they are arrayed before the Tribunal, for better understanding of the case.

3. Brief facts of the case are that the claimants, who are the father and sister of the deceased-Pathipati Thirupathi, filed petition vide O.P. No.366 of 2016 before the Tribunal, claiming compensation of Rs.10,00,000/- for the death of the deceased in a road accident that occurred on 14.06.2008. It is contended by the claimants that the deceased was the driver of lorry bearing No. AP 16 TW 4214. On the fateful day, the deceased was proceeding with a load of cement in the said lorry from Peddavoora to Mallepally, and when the vehicle reached the outskirts of Sangaram village at 05:30 p.m., the deceased overtook a tractor. At the same time, another lorry bearing No. AP 27 T 5379, came from the opposite direction and the driver of the said lorry, while trying to avoid hitting the deceased’s lorry went ahead and colluded with a KM stone. However, the lorry bearing No.AP 29 T 9954, which was coming behind the said lorry bearing No.AP 27 T 5379, collided with the deceased’s lorry, due to which the deceased sustained grievous injuries and succumbed to injuries on the spot. It was further contended by the claimants that the deceased was employed with respondent No.1 as driver and died in the course of employment.

4. Accordingly, a case in crime No.47 of 2008 was registered by the police authorities of Peddavoora Police Station.

5. The claimants contended that the deceased was earning Rs.10,000/- per month and used to contribute his earnings to the family members. Due to the untimely death of the deceased, the family of the deceased suffered grave loss.

6. The respondent No.1, who is the owner of the lorry, filed counter admitting the occurrence of the accident on 14.06.2008, age of the deceased as 23 years and that the deceased met with accident in the course of employment as driver. It is further contended by the respondent No.1 that as the crime vehicle was insured with respondent No.2 and as the policy was valid till 10.09.2008, the insurance company is also liable along with respondent No.1.

7. The respondent No.2 also filed counter contending that the deceased has no valid subsisting driving license and the subject vehicle was not roadworthy to ply. The Insurance Company also denied the occurrence of the accident and such other factors and stated that there is a

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