IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD PRESENT THE HON'BLE SRI JUSTICE K.C. BHANU M.A.C.M.A.No.2319 OF 2011 Date: 07.09.2011 Between: The Branch Manager. .....APPELLANT AND Agam Pochaiah and others. ....RESPONDENTS JUDGMENT: This C.M.A. by the appellant/Insurance Company, under Section 173 of the Motor Vehicles Act, 1988, (for short, “the Act”), is directed against the order and decree, dated 29.06.2001, in O.P.No.102 of 1998, on the file of the Chairman, Motor Accidents Claims Tribunal-cum- Principal District Judge, Nizamabad insofar as granting interest at the rate of 12% per annum from the date of petition till the date of realisation on the compensation amount of Rs.2,50,000/- for the death of Agam Yadagiri in a road accident that took place on 11.11.1997. 2. The factual matrix is not in dispute. It is also not in dispute that the accident occurred due to the rash and negligent act of the driver of the bus bearing No.ATJ 7770. The suitable multiplier applied is not in dispute. But the counsel for the appellant contended that granting of interest at 12% per annum is exorbitant and he prays to reduce the interest and set aside the impugned order insofar as granting of interest. 3. Learned counsel for the respondents/petitioners contended that granting of interest at 12% per annum is reasonable and the impugned order needs no interference by this Court and prays for dismissal of the appeal. 4. No doubt, granting of interest during the pendency of the application is a discretionary one to be exercised by the Court. That discretion has to be exercised judiciously by taking note of the well established principles laid down by the various High Courts. In a decision of the Hon’ble Supreme Court reported in SARLA VARMA AND OTHERS V DELHI TRANSPORT CORPORATION AND ANOTHER[1], the Supreme Court granted interest at 6% per annum on the compensation amount from the date of petition till the date of realization. Hence, the rate of interest granted by the Tribunal is on higher side and the same needs to be modified accordingly. 4. Accordingly, the C.M.A. is partly allowed reducing the rate of interest from 12% per annum to 6% per annum on the awarded amount while confirming the quantum of compensation. There shall be no order as to costs. _______________ K.C. BHANU, J 07th September, 2011 AMD THE HON'BLE SRI JUSTICE K.C. BHANU M.A.C.M.A.No.2319 OF 2011 Date: 07.09.2011 AMD [1] 2009 ACJ 1298