<p>The High Court of Karnataka has ruled that the amount paid from the relief fund created by the Karnataka State Road Transport Corporation (KSRTC) is independent of the compensation awarded by the Motor Accident Claims Tribunal (MACT) and cannot be deducted from the claimants’ entitlement.</p>.<p>Justice Vijayakumar A Patil made this observation while hearing a case involving a collision between two KSRTC buses. He noted that the Re 1 paid by each passenger forms a contribution towards the premium for a fund created by the KSRTC to provide relief to accident victims.</p>.<p>The accident occurred on February 8, 2018, around 10.45 am, when two KSRTC buses collided head-on near Santhigiri Estate in Kodagarahalli village, Suntikoppa, on the Kushalnagar–Madikere main road (BM Road). Both drivers died in the accident, and Shanthi, a passenger, succumbed to her injuries the following day.</p>.<p>Shanthi’s husband, Ramappa, and son Roopith approached the tribunal seeking compensation of Rs 11.5 lakh. They submitted that Shanthi, a coolie worker, was earning Rs 400 per day. It was argued that the KSRTC, being a state-run entity and internal insurer, was solely responsible for paying compensation. Meanwhile, the KSRTC paid Rs 3 lakh, claiming it as interim compensation.</p>.Karnataka High Court upholds 'Leave India Notice' to US national for breach of visa conditions.<p>On November 30, 2019, the tribunal awarded Rs 3.4 lakh as compensation, calculating the deceased’s notional income at Rs 7,000 per month for 2018. It directed the KSRTC to pay Rs 40,000 after deducting the Rs 3 lakh already paid as interim compensation.</p>.<p>However, Justice Patil clarified that there is a clear distinction between compensation paid by the KSRTC under a statutory contract and compensation awarded by the tribunal. He observed that when a passenger pays a statutory levy (Re 1 included in the ticket fare), it creates an independent statutory contract between the passenger and the state.</p>.<p>“The purchase of a ticket, along with the payment of the additional levy, confers a financial benefit on the dependents of the passenger under an independent statutory contract. This benefit arises from a statutory obligation and represents an act of foresight. Therefore, it cannot be deducted from the compensation awarded under law,” the court held.</p>.<p>The court further stated that allowing such a deduction would unfairly benefit the corporation and would be against public policy. It concluded that the tribunal had erred in deducting Rs 3 lakh from the compensation.</p>.<p>Regarding notional income, the court referred to the Karnataka State Legal Services Authority guidelines and revised the compensation to Rs 6.21 lakh, along with 6 per cent interest. The KSRTC has been directed to deposit the enhanced compensation amount within six weeks.</p>
<p>The High Court of Karnataka has ruled that the amount paid from the relief fund created by the Karnataka State Road Transport Corporation (KSRTC) is independent of the compensation awarded by the Motor Accident Claims Tribunal (MACT) and cannot be deducted from the claimants’ entitlement.</p>.<p>Justice Vijayakumar A Patil made this observation while hearing a case involving a collision between two KSRTC buses. He noted that the Re 1 paid by each passenger forms a contribution towards the premium for a fund created by the KSRTC to provide relief to accident victims.</p>.<p>The accident occurred on February 8, 2018, around 10.45 am, when two KSRTC buses collided head-on near Santhigiri Estate in Kodagarahalli village, Suntikoppa, on the Kushalnagar–Madikere main road (BM Road). Both drivers died in the accident, and Shanthi, a passenger, succumbed to her injuries the following day.</p>.<p>Shanthi’s husband, Ramappa, and son Roopith approached the tribunal seeking compensation of Rs 11.5 lakh. They submitted that Shanthi, a coolie worker, was earning Rs 400 per day. It was argued that the KSRTC, being a state-run entity and internal insurer, was solely responsible for paying compensation. Meanwhile, the KSRTC paid Rs 3 lakh, claiming it as interim compensation.</p>.Karnataka High Court upholds 'Leave India Notice' to US national for breach of visa conditions.<p>On November 30, 2019, the tribunal awarded Rs 3.4 lakh as compensation, calculating the deceased’s notional income at Rs 7,000 per month for 2018. It directed the KSRTC to pay Rs 40,000 after deducting the Rs 3 lakh already paid as interim compensation.</p>.<p>However, Justice Patil clarified that there is a clear distinction between compensation paid by the KSRTC under a statutory contract and compensation awarded by the tribunal. He observed that when a passenger pays a statutory levy (Re 1 included in the ticket fare), it creates an independent statutory contract between the passenger and the state.</p>.<p>“The purchase of a ticket, along with the payment of the additional levy, confers a financial benefit on the dependents of the passenger under an independent statutory contract. This benefit arises from a statutory obligation and represents an act of foresight. Therefore, it cannot be deducted from the compensation awarded under law,” the court held.</p>.<p>The court further stated that allowing such a deduction would unfairly benefit the corporation and would be against public policy. It concluded that the tribunal had erred in deducting Rs 3 lakh from the compensation.</p>.<p>Regarding notional income, the court referred to the Karnataka State Legal Services Authority guidelines and revised the compensation to Rs 6.21 lakh, along with 6 per cent interest. The KSRTC has been directed to deposit the enhanced compensation amount within six weeks.</p>