The Karnataka State Road Transport Corporation (KSRTC) and other transport business companies are not entitled for compensation for “loss of revenue” when their buses are kept idle in the garage to repair the damage caused due to road accidents, the High Court of Karnataka has said.
Justice Hanchate Sanjeevkumar passed the order while rejecting the claim for compensation for “loss of revenue” made by the KSRTC from insurance companies in several cases of road accidents.
The court noted that it is obligatory for the KSRTC or other transport business companies, under Section 72 of the Motor Vehicles Act, 1988, and under Rule 69-A of the Karnataka Motor Vehicles Rules, 1989, to maintain a specific number of reserve/spare buses for deploying them in the permitted scheduled routes in case of repair or damage caused due to accidents.
Also, the court pointed out that the law mandates that transport companies have to ply reserve buses to ensure public/passengers of the scheduled bus route are not made to suffer due to non-availability of the designated bus following the accident.
Meanwhile, the court noted that the law also imposes the condition on route permit holders to maintain a specific number of reserve buses. Any individual or company, who holds 51 or more permits for scheduled routes will have to keep the reserve bus not less than 10% of their fleet strength as per Rule 69-A, the court said.
The question of “loss of revenue” does not arise when it is mandatory for the KSRTC and other transport business companies to operate reserve buses, the court made it clear.
