- 1 - HC-KAR NC: 2026:KHC:25482 MFA No. 7309 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE T.M.NADAF MISCELLANEOUS FIRST APPEAL NO. 7309 OF 2016 (MV-DM) BETWEEN: THE DIVISIONAL CONTROLLER, KSRTC, MANGALURU DIVISION, MANGALURU, ON BEHALF OF M.D. K.S.R.T.C CENTRAL OFFICES, K.H. ROAD, BENGALURU – 560 027. REPRESENTED BY ITS CHIEF LAW OFFICER …APPELLANT (BY SRI. F.S. DABALI, ADVOCATE) AND: 1. MRS. JAINABI SHAFI, W/O. MOHAMMED SHAFI, AGE MAJOR, R/AT H. NO. 3:383A, MUNDOLE HOUSE, THEKKILA POST, KASARAGOD DISTRICT, KERALA STATE - 670 545. 2. THE MANAGER, UNITED INDIA INSURANCE RAMBHAVAN COMPLEX, KODIALBAIL, MANGALURU – 575 001. …RESPONDENTS (BY SMT. H.C. LOKESHWARI, ADVOCATE FOR SRI. A. RAVISHANKAR, ADVOCATE FOR R2, VIDE ORDER DATED 19.11.2021 NOTICE TO R1 IS DISPENSED WITH) Digitally signed by REKHA R Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:25482 MFA No. 7309 of 2016 THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED:08.07.2016 PASSED IN MVC NO.78/2014 ON THE FILE OF the 4TH ADDITIONAL DISTRICT & SESSIONS JUDGE, MEMBER, MACT, D.K., MANGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE T.M.NADAF ORAL JUDGMENT The appeal is by the Corporation seeking enhancement of compensation arising out of the common judgment and award dated 08.07.2016 in MVC.No.78/2014 passed by the IV Additional District Judge and Member, Motor Accident Claims Tribunal, D.K.Mangaluru1. 2. By means of the judgment and award, the Tribunal awarded total compensation of Rs.2,10,700/- with 1 “Tribunal” - 3 - HC-KAR NC: 2026:KHC:25482 MFA No. 7309 of 2016 interest at 6% per annum from the date of petition till its realization, which includes loss of revenue as well as damage caused to the bus to an extent of Rs.30,500/-. 3. Heard Sri.F.S.Dabali, learned counsel for appellant-Corporation and Smt.H.C.Lokeshwari, learned counsel for Sri.A.Ravishankar, learned counsel for respondent No.2-Insurer. Vide order dated 19.11.2021, notice to respondent No.1 is dispensed with. 4. Sri.F.S.Dabali, with all vehemence submits that the Tribunal though has considered that the average income as per the evidence of RW-3 has been calculated at Rs.30/- per km, has deducted 60% for the miscellaneous expenses, which includes salary, diesel and also generating of revenue and after deducting 60% of the amount i.e., Rs.18/- from Rs.30/- which would be the average income to be generated, however, the Tribunal again deducted 50% out of Rs.12/- stating that the corporation for generating revenue has engaged spare bus - 4 - HC-KAR NC: 2026:KHC:25482 MFA No. 7309 of 2016 and the idling charges of the bus involved in the accident has been considered only at Rs.6/- per day. Accordingly, the compensation awarded is erroneous. 5. The Tribunal once having said that 60% is deducted towards miscellaneous, ought not to have deducted Rs.6/- again out of Rs.12/- as loss of revenue to the Corporation and awarded appropriate compensation without deducting any further amount as has been done at the rate of 50% in the case on hand. Accordingly, sought to allow the appeal. 6. Madam Lokeshwari with all vehemence submits that the Tribunal though considered Rs.30/- as average income calculated per km, in the absence of any documents to that effect, only on the basis of evidence of RW-3 deducted Rs.18/- towards miscellaneous expenses and in view of the fact that the spare bus has been used, the idling charges has been calculated at 50% out of Rs.12/- remained after deducting 60% from Rs.30/-. As - 5 - HC-KAR NC: 2026:KHC:25482 MFA No. 7309 of 2016 such the judgment and award passed by the Tribunal cannot be found fault with and sought to dismiss the appeal. 7. Having considered the rival submission, this Court perused the entire appeal paper and also trial Court records. Admittedly, the bus met with an accident which has costed Rs.30,500/- for change of spare parts. The bus was idle for 39 days without generating income. A spare bus was plied in the place of the bus met with an accident and it was kept idle. As per the contentions of the Corporation, the Tribunal having considered Rs.30/- as average calculated income per km and once has deducted Rs.18/- for the miscellaneous expenses, ought to have considered and maintained Rs.12/-, the average income which was lost to the Corporation due to idling of the bus involved in it. No reasons found forthcoming for further deductuction of 50% out of Rs.12/-, from the judgment. - 6 - HC-KAR NC: 2026:KHC:25482 MFA No. 7309 of 2016 8. In the considered opinion of this Court, the Tribunal ought to have maintained Rs.12/- towards the idling charges of the bus, without further deducting 50% from the same towards engaging spare bus. In that view of the matter, instead of Rs.6/-, Rs.12/- is taken as loss to the Corporation for each day for idling the bus and when multiplied the same with the total kms of 770 with 39 days, the period when the bus was kept idle, the same comes to Rs.3,60,360/-. The same is considered as loss caused to the Corporation due to idling of the bus for 39 days. Accordingly, this Court proceed to pass the following: ORDER (i) The appeal is allowed. (ii) The judgment and award dated 08.07.2016 in MVC.No.78/2014 passed by IV Additional District Judge and MACT, D.K.Mangaluru, is modified re-determining the amount at Rs.3,90,860/- as against Rs.2,10,700. Accordingly, the amount - 7 - HC-KAR NC: 2026:KHC:25482 MFA No. 7309 of 2016 enhanced comes to Rs.1,80,160/-, which is rounded off to Rs.1,80,500/-. The said enhanced amount shall carry interest at the rate of 6% per annum from the date of petition till realization. (iii) The respondent No.2-Insurer shall deposit the entire enhanced compensation along with accrued interest stated supra before the concerned Tribunal within six weeks from the date of receipt of copy of this order. (iv) Upon deposit the entire amount shall be released in favour of the Corporation on proper identification. Sd/- (T.M.NADAF) JUDGE RR List No.: 1 Sl No.: 47 ct-vn