Authority: High Court of Andhra Pradesh at Amaravati (Special Original Jurisdiction)

Order Date: 02-11-2026

Case Overview

  • Parties: Appellant – Andhra Pradesh State Road Transport Corporation (APSRTC) represented by its Managing Director. Respondents – N. Subramnauyam Reddy and eight family members (parents, sister, grandparents, tractor driver, tractor owner, and APSRTC driver). The appeal challenges the Motor Accident Claims Tribunal (MACT) decree dated 20‑12‑2017 in MVOP No.64/2016, which awarded Rs.10,00,000 compensation for the death of Sri N. Sreenath Reddy.
  • Accident Background: On 01‑12‑2015, the deceased (23‑year‑old electrician at Ratna Biotech Private Ltd, earning Rs.7,600 per month) was standing beside a tractor‑trailer (bearing No. AP‑03‑U‑8582) when the APSRTC bus (bearing No. AP‑28‑Z‑6138) driven by respondent No.1 (bus driver) allegedly drove rashly, collided with the tractor, and the tractor struck the deceased, causing fatal injuries. The deceased was declared dead at Government Hospital, Palamaner.
  • Legal Proceedings: A criminal case (No.174 of 2015) under Section 304‑A IPC was filed against the bus driver. The MACT awarded Rs.10,00,000 compensation with interest at 7.5% p.a. Respondent No.2 (APSRTC) appealed, alleging the tribunal erred on facts, liability, licence validity of tractor driver, insurance, and compensation calculation.
  • Evidence Considered: The court examined FIR (Ex.A1), charge sheet (Ex.A2), post‑mortem (Ex.A3), inquest report (Ex.A4), Motor Vehicle Inspector report (Ex.A6), salary certificate (Ex.A8), and passbook extracts (Ex.A9‑A11). No oral or documentary evidence was produced by the respondents; the bus driver was not examined. The court found the evidence of the petitioners and the FIR/charge sheet conclusively proved rash and negligent driving by the APSRTC bus driver.
  • Compensation Assessment: The court noted the deceased’s notional monthly income as Rs.7,000 (despite the salary certificate of Rs.7,600). Using the multiplier “15”, it calculated:
  • Annual income: Rs.84,000
  • Deduction for personal expenses (½): Rs.42,000
  • Net income: Rs.42,000
  • Future prospects (40%): Rs.16,800
  • Total loss of dependency (51,633+25,816)×15: Rs.11,61,735
  • Loss of consortium (parental, Rs.40,000×2): Rs.80,000
  • Funeral expenses: Rs.15,000
  • Loss of estate: Rs.15,000
  • Total: Rs.12,71,735, rounded to Rs.12,72,000.
  • Liability Findings: The court affirmed that the accident was solely due to the negligent driving of the APSRTC bus driver; therefore, APSRTC (respondent No.2) is vicariously liable. The tractor driver and owner were exonerated.
  • Legal Precedents Cited: The court relied on Sharanamma v. Divisional Controller (2013), National Insurance Co. Ltd. v. Susheelamma (2023), Surekha v. Santhosh (2021), Sarala Varma v. Delhi Transport Corp. (2009), National Insurance Co. Ltd. v. Pranay Sethi (2017), Magma General Insurance Co. Ltd. v. Nanu Ram (2018), and Government of India v. Sri Devarj Medical College (2026) to justify enhancement of compensation despite no cross‑appeal.

Final Outcome

  • The appeal is dismissed, but the compensation award is modified from Rs.10,00,000 to Rs.12,72,000.
  • Allocation of the award: Rs.5,00,000 to petitioner No.1, Rs.5,72,000 to petitioner No.2, and Rs.50,000 each to petitioners Nos.3‑6.
  • Interest at 7.5% per annum simple from the date of petition until payment is ordered.
  • The total amount, excluding any previously deposited sum, must be paid within two months of the judgment.
  • No order as to costs; pending miscellaneous petitions, if any, stand closed.

Topics: Compensation, Transport Liability, Judicial Appeal