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.
