THE HON’BLE SRI JUSTICE D.S.R.VARMA CIVIL MISCELLANEOUS APPEAL No.1064 of 2003 Date: 26.08.2010 Between : Smt. Bhanu Bee and others. … Appellants and Andhra Pradesh State Road Transport Corporation. … Respondent THE HON’BLE SRI JUSTICE D.S.R.VARMA CIVIL MISCELLANEOUS APPEAL No.1064 of 2003 ORAL JUDGMENT: Heard learned counsel for the appellants-claimants as well as learned Standing Counsel for the respondent-A.P. State Road Transport Corporation. 2. Aggrieved by the judgment and decree, dated 9.12.2002, in M.V.O.P.No.1133 of 2000, passed by the Chairman, Motor Accident Claims Tribunal cum Principal District Judge, Kurnool (for brevity “the Tribunal”), awarding a sum of Rs.2,90,348/- in all, after deducting a sum of Rs.1,00,000/-, which was paid towards exgratia, from out of the originally estimated compensation amount of Rs.3,90,348/-, as against the claim of Rs.4,50,000/- made by the claimants for the death of the deceased-Chand Basha in a motor accident that occurred on 26.9.1997, due to the rash and negligent driving on the part of driver of the bus, bearing registration No.AP 9Z 9296, belonging to the respondent-Corporation, the present civil miscellaneous appeal has been preferred by the claimants. 3. This is a case of death in a motor accident. The particulars regarding the method and the manner in which the accident had occurred and the aspect of negligence are not referred to since not in dispute. The Tribunal, after appreciating the evidence on record, both oral and documentary, arrived at a compensation of Rs.3,90,348/- and after deducting a sum of Rs.1,00,000/-, which was paid towards exgratia, awarded a sum of Rs.2,90,348/- towards compensation. Hence the present appeal. 4. The only point that arises for consideration in this appeal is whether the amount awarded towards exgratia can be deducted from out of the originally estimated amount of compensation? 5. It is not in dispute that the Corporation immediately after the accident announced a sum of Rs.1,00,000/- to the claimants for the death of the deceased. The Tribunal having arrived at a compensation of Rs.3,90,348/-, deducted the said sum of Rs.1,00,000/- paid towards exgratia by the Corporation, awarded a sum of Rs.2,90,348/- towards compensation. Deduction of the said amount of Rs.1,00,000/- from out of the originally estimated amount of compensation by the Tribunal is disputed by the appellants. 6. In this regard, it is to be noted that exgratia is nothing to do with the amount of compensation awarded for the death of the deceased and the same is not covered under any of the heads of compensation. It is only as a matter of gratis, immediately after the accident, paid by the Corporation to the next-kin of the deceased and the same cannot be treated as part of the compensation. In other words, compensation would strictly be arrived towards the loss sustained by the claimants for the death of the deceased in terms of the assessment made by the competent Tribunal after adjudication. Therefore, it is a legal right for the claimants to receive compensation for the death of the deceased. Whereas the exgratia is concerned, neither there is any obligation on the part of the Corporation to pay exgratia nor the claimants have any right to claim the said amount towards exgratia. It is purely as a matter of gratis, the Corporation has announced the exgratia and that cannot be treated as compensation. 7. Therefore, the actual sum estimated by the Tribunal towards compensation at Rs.3,90,348/- shall be the amount payable to the claimants and no other amounts, including the exgratia, shall be deducted from the said amount. 8. Further, the Tribunal had awarded interest at 9% per annum from the date of petition till the date of realisation. In my considered view, the said rate of interest is slightly on higher side. Therefore, exercising the power under Section 171 of the Motor Vehicles Act, 1988, I deem it appropriate to reduce the rate of interest from 9% to 7.5% per annum from the date of petition till realisation. 9. In the result, the civil miscellaneous appeal is allowed in part, directing the respondent-Corporation to pay the total sum of Rs.3,90,348/- (Rupees three lakhs ninety thousand three hundred and forty eight only) as was originally estimated by the Tribunal towards compensation on all counts, which shall carry interest at 7.5 per cent per annum from the date of filing of the O.P. before the Tribunal, till realization. In all other aspects, the judgment passed by the Tribunal shall remain unaltered. There shall be no order as to costs. _______________________ JUSTICE D.S.R.VARMA 26.08.2010. Msr THE HON’BLE SRI JUSTICE D.S.R.VARMA CIVIL MISCELLANEOUS APPEAL No.1064 of 2003 26.08.2010 (Msr)