Solution Guys...

FYI i am using xampp to use phpmyadmin. and this error happens during the process of creating a database on localhost. Below is the code for config.inc file under phpmyadmin directory:

<?php
/*
 * This is needed for cookie based authentication to encrypt password in
 * cookie
 */
$cfg['blowfish_secret'] = 'xampp'; /* YOU SHOULD CHANGE THIS FOR A MORE SECURE COOKIE      AUTH! */

/*
 * Servers configuration
 */
$i = 0;

/*
 * First server
 */
$i++;

/* Authentication type and info */
$cfg['Servers'][$i]['auth_type'] = 'HTTP';
$cfg['Servers'][$i]['user'] = 'root'; 
$cfg['Servers'][$i]['password'] = 'password';
$cfg['Servers'][$i]['extension'] = 'mysql';
$cfg['Servers'][$i]['AllowNoPassword'] = true;
$cfg['Lang'] = '';

/* Bind to the localhost ipv4 address and tcp */
$cfg['Servers'][$i]['host'] = 'localhost';
$cfg['Servers'][$i]['connect_type'] = 'tcp';

/* User for advanced features */
$cfg['Servers'][$i]['controluser'] = 'pma';
$cfg['Servers'][$i]['controlpass'] = '';

/* Advanced phpMyAdmin features */
$cfg['Servers'][$i]['pmadb'] = 'phpmyadmin';
$cfg['Servers'][$i]['bookmarktable'] = 'pma_bookmark';
$cfg['Servers'][$i]['relation'] = 'pma_relation';
$cfg['Servers'][$i]['table_info'] = 'pma_table_info';
$cfg['Servers'][$i]['table_coords'] = 'pma_table_coords';
$cfg['Servers'][$i]['pdf_pages'] = 'pma_pdf_pages';
$cfg['Servers'][$i]['column_info'] = 'pma_column_info';
$cfg['Servers'][$i]['history'] = 'pma_history';
$cfg['Servers'][$i]['designer_coords'] = 'pma_designer_coords';
$cfg['Servers'][$i]['tracking'] = 'pma_tracking';
$cfg['Servers'][$i]['userconfig'] = 'pma_userconfig';
$cfg['Servers'][$i]['recent'] = 'pma_recent';
$cfg['Servers'][$i]['table_uiprefs'] = 'pma_table_uiprefs';

/*
 * End of servers configuration
 */

?>