THE HON’BLE SRI JUSTICE R.KANTHA RAO C.M.A.No. 1544 of 2001. JUDGEMENT: Heard Sri.Kota Subba Rao, the learned Counsel for the appellant. There is no representation on behalf of the respondents. On 7.5.1992 the deceased Pilla Ramana was travelling on the Tractor-trailer bearing Nos.5877 & 5878, which was carrying the load of straw and when the tractor reached Gowripatnam junction at about 8 a.m. the deceased fell down and sustained severe injuries and succumbed to injuries while on the way to Government Hospital, Chodavaram. The 1st respondent was the driver of the tractor, which belongs to the 2nd respondent and the tractor was insured with the appellant insurance company. The legal representatives of the deceased filed a claim petition under Section166 of the Motor Vehicles Act claiming a compensation of Rs. 4,00,000/- and against which, the Tribunal below awarded an amount of Rs. 50,000/- under no fault liability, which finding is questioned by the appellant insurance company in the present appeal. The Tribunal below had recorded a categorical finding that the accident was not due to the rash and negligent driving of the vehicle by the 1st respondent who was driving the vehicle and the said finding has become final since no appeal has been preferred by the claimants. Therefore, the only question that arises for determination in this appeal is whether the Tribunal is justified in granting a compensation of Rs. 50,000/- under no fault liability having recourse to Section 92-A of the Motor Vehicles Act. The Tribunal below rendered its decision relying on the Judgement of this Court in New India Assurance Co. Ltd., vs. Jaddu Innareddy [1] wherein it was held that the amended Motor Vehicles Act i.e. Act No. 54 of 1994 which came into force with effect from 14.11.1994 is retrospective in operation so far as the amount to be awarded under the head ‘no fault liability’ as per Section 140 of the Act. Here it may be noticed that under Section 92-A of the old Act, the compensation payable under the head ‘no fault liability’ in case of death is Rs. 15,000/-. However, the said amount was enhanced to Rs. 25,000/- by way of an amendment with effect from 1.7.1989. The said amount was again enhanced to Rs. 50,000/- with effect from 14.11.1994. The learned Tribunal applying the ratio laid down in the above-mentioned case, awarded an amount of Rs. 50,000/-. The ratio in the above decision (1 supra) was over-ruled by a Division Bench of this Court in New India Assurance Company Limited vs Salapuriappa [2] wherein it was laid down that Act 54 of 1994 is not retrospective in operation. Further in Pepsu Road Transport Corporation vs. Kulwant Kaur [3], the Supreme Court also laid down that Section 140 of the Motor Vehicles Act 1988 is not retrospective in operation. In view of the settled legal position and since the deceased died in an accident that occurred on 7.5.1992, the claimants are entitled for compensation of Rs. 25,000/- as per the Amendment, which came into force with effect from 1.7.1989. Thus, the amount of compensation of Rs. 50,000/- granted by the Tribunal is not in accordance with law and the same is reduced to Rs. 25,000/-. In the result the appeal is allowed. The compensation of Rs. 50,000/- granted by the Tribunal is reduced to Rs. 25,000/-. The other findings recorded by the Tribunal below are not interfered with. There shall be no order as to costs. ____________________ R.KANTHA RAO,J 07.04.2010. krb. THE HON’BLE SRI JUSTICE R.KANTHA RAO C.M.A.No. 1544 of 2001. Dt. 07.04.2010. [1] 195(1) ALT 75 [2] 1996(2) ALT (D.B) [3] 2009 ACJ 1329