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IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD

THE HON’BLE SRI JUSTICE C.V.BHASKAR REDDY

M.A.C.M.A.No.863 of 2019

DATE: 28.04.2026

Between:

Smt. P. Marri and two others

…..Appellants

AND

Sri K. Ramulu Naik and another

….Respondents

JUDGMENT

This appeal is preferred by the appellants/claimants against

the award dated 01.03.2008 passed in O.P.No.2071 of 2005 by the

Chairman, Motor Accidents Claims Tribunal–cum–III Additional Chief

Judge, City Civil Court, Hyderabad (for short, “the Tribunal”),

whereby the Tribunal awarded a total compensation of

Rs.3,50,000/-, but restricted the liability of the respondents to 50%

on account of contributory negligence and consequently awarded a

sum of Rs.1,75,000/- with interest at 7.5% per annum.

2. The brief facts of the case are that the deceased, P. Periya Naik,

husband of appellant No.1, father of appellant No.2 and son of

appellant No.3, was working as a labourer and earning his livelihood.

On 03.08.2004, while he was travelling in an auto-rickshaw bearing

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No.AP-23V-5422, an unknown jeep coming from the opposite

direction dashed against the said auto, resulting in a head-on

collision. Due to the impact, the deceased sustained grievous injuries

and, while undergoing treatment, succumbed to the injuries on the

same day. In connection with the said accident, a case was registered

by the police. The appellants/claimants, being the legal

representatives of the deceased, filed the aforesaid claim petition

under Section 163-A of the Motor Vehicles Act before the Tribunal

seeking compensation of Rs.3,00,000/- against the owner and

insurer of the auto-rickshaw. The Tribunal, upon appreciation of the

material on record, held that the accident occurred due to a head-on

collision between the auto and the jeep and, in the absence of an eye-

witness account clearly fixing negligence, attributed contributory

negligence equally to both the drivers and accordingly restricted the

liability of the respondents to 50%. However, the Tribunal assessed

the total compensation at Rs.3,50,000/- by taking the monthly

income of the deceased at Rs.3,000/- and applying the structured

formula under Section 163-A of the Act. Assailing the said award,

the present appeal has been filed by the appellants/claimants.

3. Learned counsel for the appellants/claimants contended that

the Tribunal erred in applying the principle of contributory negligence

in a claim under Section 163-A of the Motor Vehicles Act, where proof

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of negligence is not required, and that once the involvement of the

vehicle is established, the appellants/claimants are entitled to the

entire compensation as per the structured formula. It is further

contended that having determined the compensation at

Rs.3,50,000/-, the Tribunal ought not to have reduced the same by

50%. It is also urged that the amounts awarded under conventional

heads are on the lower side and require enhancement.

4. On the other hand, the learned counsel for the 2nd respondent–

Insurance Company supported the award passed by the Tribunal.

5. Having considered the rival submissions and upon perusal of

the material available on record, this Court is of the considered

opinion that the finding of the Tribunal with regard to contributory

negligence cannot be sustained. The claim petition having been filed

under Section 163-A of the Motor Vehicles Act, the claimants are not

required to plead or establish negligence. The liability under the said

provision is based on no-fault principle and once the involvement of

the vehicle in the accident resulting in death is established, the

claimants are entitled to compensation as per the structured formula.

Therefore, the Tribunal committed an error in attributing

contributory negligence and reducing the compensation by 50%.

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6. Insofar as the quantum of compensation is concerned, the

Tribunal has rightly assessed the income of the deceased at

Rs.3,000/- per month, deducted one-third towards personal expenses

and arrived at the compensation of Rs.3,36,000/- under the l