JUDGMENT 1. - This appeal u/s 173 of Motor Vehicles Act, 1988 (for short 'the Act') is directed against the award dated 8.5.96 passed by Motor Accident Claims Tribunal I, Jodhpur (for short 'the Tribunal') whereby the Tribunal awarded compensation of Rs. 25,000/- along with interest @12% p.a. from the date of application till realisation. The award passed by the Tribunal was based on compromise dated 22.4.96 entered into between the appellant National Insurance Company Ltd. (for short 'the Insurance Co.') and the claimant respondent No. 1 (for short 'the claimant'). 2. I have heard learned counsel for the appellant. Perused the award impugned as well as the compromise dated 22.4.96. 3. It is stated by the learned counsel for the Insurance Co. that the claimant filed a claim petition before the Tribunal on 26.7.88 claiming compensation of Rs. 2,60,000/- . A joint compromise by the claimant and the insurance Co. was filed before the Tribunal on 22.4.06 whereby the claimant and the Insurance Co. compromised the matter and the claimant agreed to receive Rs. 25,000/- as compensation and to relinquish rest of his claim amount. On the basis of this compromise, the Tribunal passed an award of Rs. 25,000/- in favour of the claimant and against the Insurance Co. However, the Tribunal directed that the claimant shall be entitled for interest @12% p.a. from the date of claim. 4. Learned Counsel appearing for the appellant contended that in the compromise filed jointly by the claimant and the Insurance Co. there was no such agreement for awarding interest. The claimant has limited its claim to Rs. 25,000/- and relinquished rest of his claim and, therefore, the claimant is entitled only for Rs. 25,000/- and not interest. 5. Section 171 of the Act provides that where any Claims Tribunal allows a claim for compensation made under this Act, such Tribunal may direct that in addition to the amount of compensation simple interest shall is also be paid at such rate and from such date not earlier than the date of making the claim as it may specify in this behalf. 6. 6. In Ramesh Chandra v. Randhir Singh and others, 1990 ACJ 777 , the Supreme Court while considering the provisions of section 110-CC of the Motor Vehicles Act, 1939 (for short the old Act') corresponding to section 171 of the Act held as under: "...where any court or claims Tribunal allows a claim for compensation made under the Act such court or Tribunal may direct that in addition to the amount of compensation simple interest shall also be paid at such rate and from such date not earlier than the date of making the claim as it may specify in this behalf. The caption of the provision is "Award of interest where any claim is allowed". The question of award of interest is dependent on the claim being allowed. Should the claim be not allowed, the question of grant of interest would not arise, and if award-able, it is in addition to the amount of compensation. The court or Tribunal, in these circumstances, should determine, in the first instance, claim for compensation and in the event of its being allowed can further exercise the discretion to grant simple interest in terms thereof, but as an additive to the amount of compensation, So the addition of interest to the compensation, by judicial discretion, is sequential in the eye of law and no claim in that regard, in our view, specially need be laid in so many words in the claim petition." 7. Thus, the interest by statute is in addition to the amount of compensation and, therefore, I am of the view that the judicial exercised by the Tribunal In awarding interest in addition to the amount of compensation cannot be said to be erroneous or perverse. On the contrary, it is in accordance with law. 8. In this view of the matter, I find no merit in this appeal. Accordingly, it ails and is dismissed. No order as to costs.Appeal Dismissed. *******