Perne LPG tanker tragedy: High Court rejects plea to deduct ex-gratia from compensation
Bengaluru: The High Court of Karnataka has dismissed an appeal filed by National Insurance Company seeking deduction of government-issued ex-gratia payments from the compensation awarded to the families of 13 victims who died in the 2013 LPG tanker explosion at Perne in Dakshina Kannada district.
A single-judge bench of Justice P. Sree Sudha held that ex-gratia amounts released by the government constitute a form of social security support intended to mitigate the loss of income suffered by the affected families. The court clarified that such payments cannot be linked to, or adjusted against, statutory compensation awarded under motor accident claim proceedings.
The court stated that the ex-gratia amount paid by Hindustan Petroleum Corporation Limited (HPCL) could not be deducted from the compensation fixed by the Motor Accident Claims Tribunal (MACT). It further noted that the Supreme Court has already ruled that ex-gratia disbursements cannot be subtracted while calculating compensation.
According to the High Court, the explosion was triggered by negligence on the part of the tanker driver, and therefore the victims were entitled to claim compensation under the Motor Vehicles Act. The court directed the insurance company to deposit the entire compensation amount along with applicable interest.
Background of the incident
On 9 April 2013, an LPG tanker belonging to HPCL overturned near Perne village on the Mangaluru–Bantwal highway. The gas leak ignited a massive fire, killing 13 people and injuring several others. Residential buildings, commercial establishments, and multiple vehicles along the road were severely damaged.
Following the incident, HPCL and the state government distributed various relief amounts to the bereaved families and the injured. In December 2016, the MACT in Mangaluru allowed the compensation claims filed by affected families.
National Insurance Company later challenged the tribunal’s orders in eight separate appeals, arguing that the incident was essentially a fire accident and not a motor vehicle accident, and that the ex-gratia amounts already paid by HPCL and the government should be deducted from the compensation. The High Court has now rejected these arguments in its ruling.
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Rupee falls 9 paise to all-time low of 90.58 against US dollar in early trade
Mumbai (PTI): Rupee depreciated 9 paise to an all-time low of 90.58 against US dollar in early trade on Monday, weighed down by uncertainty over an India-US trade deal and persistent foreign fund outflows.
Forex traders said rupee is trading with a negative bias as investors are in wait and watch mode and awaiting cues from the India-US trade deal front.
At the interbank foreign exchange market, the rupee opened at 90.53 against the US dollar, then fell further to an all-time intraday low of 90.58 against the greenback, registering a fall of 9 paise over its previous close.
On Friday, the rupee had slipped 17 paise to close at an all-time low of 90.49 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent lower at 98.35.
Brent crude, the global oil benchmark, was trading higher by 0.52 per cent at USD 61.44 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 298.86 points lower at 84,968.80, while the Nifty was down 121.40 points at 25,925.55.
Foreign Institutional Investors sold equities worth Rs 1,114.22 crore on Friday, according to exchange data.
"FPIs continue to be in selling mode in equity and debt while RBI has been selling dollars to fund their long positions," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
