IN THE HIGH COURT OF JUDICATURE,ANDHRAPRADESH AT HYDERABAD HON'BLE SRI JUSTICE N.V.RAMANA AND HON'BLE SRI JUSTICE P.DURGA PRASAD M.A.C.M.A.No.1524 of 2007 Date: 15.11.2011 Between: National Insurance Company Limited, Represented by Its Divisional Manager, Divisional office at Door No. 2-6-103, Near Municipal Council Office, Karimnagar. .....Appellant/Respondent No.3 AND 1.Cherukuri Nagaraj Prakash Raj, S/o Rathnamaiah, 59 years, Private Doctor and 6 others. … ....Respondents HON'BLE SRI JUSTICE N.V.RAMANA AND HON'BLE SRI JUSTICE P.DURGA PRASAD M.A.C.M.A.No.1524 of 2007 JUDGMENT: (Per. Hon’ble Sri Justice N.V.Ramana) This appeal is filed by the Insurance company against the award dated 03.04.2007 passed in O.P No.122 of 2006 by the Chairman, Motor Vehicle Accident Claims Tribunal-cum-II Additional District Judge, Karimnagar. Respondents 1 to 4 herein are the claimants. The 5th respondent herein is the driver and the 6th respondent herein is the owner of the offending vehicle and the 7th respondent and appellant herein are the insurers of the offending vehicle in the said O.P. In an accident that took place on 26.11.2005 at about 10.30 P.M. in the outskirts of Ananthasagar village, the wife of the 1st respondent and mother of respondents 2 to 4 herein, who was aged 57 years, died and consequently they laid a claim for compensation of Rs.15,00,000/-. The Tribunal, after holding that the 5th respondent- driver of the Car was responsible for causing the accident, allowed the claim in part and granted a sum of Rs.11,47,800/ towards compensation with interest at 7.5% per annum from the date of petition till realization against respondents 5 to 7 and the appellant herein. Learned Counsel for the appellant-Insurance Company though raised several grounds in the appeal, he restricted his arguments to the extent of reducing the rate of interest from 7.5% to 6% per annum as it is excessive in view of the decision of the Apex Court in SARALA VERMA VS. DELHI TRANSPORT CORPORATION[1] and, therefore, the award passed by the Tribunal requires modification. On the other hand, learned Counsel for the respondents-claimants supports the rate of interest at 7.5% per annum as legal and valid and that no interference is called for. In view of the only contention of the learned Counsel for the appellant-Insurance Company in so far as reduction of rate of interest from 7.5% to 6% per annum as it is excessive in view of the decision of the Apex Court in SARALA VERMA VS. DELHI TRANSPORT CORPORATION, without going into the merits of the case, we are of the considered view that awarding of interest at the rate of 7.5% per annum is excessive as per the aforesaid decision of the Apex Court and accordingly the interest awarded by the Tribunal on the compensation amount is reduced to 6% per annum from the date of petition till the date of realization. Except to the extent of reduction in rate of interest, the award passed by the Tribunal is sustained in other respects. Accordingly, the Civil Miscellaneous Appeal is partly allowed. There shall be no order as to costs. ________________________ JUSTICE N.V.RAMANA __________________________ JUSTICE P.DURGA PRASAD 15.11.2011 Gsn [1] 2009 (6) scale 129