Justice C K Abdul Rahim made the oral observation while considering a batch of petitions by former employees seeking pensionary benefits.
The court also said a constructive plan should be brought to restructure the KSRTC.
The state-owned corporation informed the court that its monthly revenue was Rs 150 crore a month and expenses touched Rs 239 crore. There was heavy pension liability every month, it said.
The court said it was desirable to permit private operators in non-profitable routes of KSRTC.