Advocate Padmanabha Kedilaya V, appearing for the appellants challenging the tribunal order, contended that deducting compensation paid by the corporation immediately after the accident was impermissible. He also argued that the tribunal erred in deducting 50 percent towards Shanti’s personal and living expenses.

Advocate F S Dabali, appearing for the corporation, opposed the appeal and submitted that the tribunal’s income assessment was just and proper and that the corporation’s interim compensation payment should be deducted from the adjudicated compensation.

The high court noted that the Karnataka State Road Transport Corporation has maintained a Passengers Accident Relief Fund Trust since 2002 to provide immediate financial relief to the legal heirs of KSRTC passengers killed in road accidents. The trust collects Rs 1 as a contribution from each passenger who buys a ticket of Rs 100. In March 2017, the trust decided to pay Rs 3 lakh in compensation to the legal heirs in addition to the MACT award.

The court pointed out that Shanti had paid Rs 1 as a contribution to the KSRTC fund created for accident victims. “Tribunal has committed a grave error in deducting Rs 3,00,000 as interim compensation, which is impermissible,” its order said.

Reassessing the compensation under various categories, the court modified the tribunal order and directed that Shanti’s legal heirs be paid Rs 6,21,000 as total compensation.