JUDGMENT

A.M. Ahmadi, CJI. - These two appeals arise from a common judgment of the Division Bench of High Court of Kerala on a reference made to it by a learned single Judge of that Court. The High Court found itself confronted with the question whether the Cochin Port Trust is entitled, under the Major Port Trusts Act, 1963, (hereinafter referred to as the Major Port Trusts Act ) the Indian Ports Act, 1908 (hereinafter referred to as the Indian Ports Act ) and the Regulations made thereunder, to demand an unconditional cash deposit from the owner of a ship which caused damage to the property of the Port Trust.

2. The appellants in Civil Appeal No. 2427/94, South India Corporation (Agencies) Ltd., are the agents of the vessel, M.T. Larnaca. The appellants in Civil Appeal No. 2426/94, M/s. Luga Bay Shipping Corporation, are the owners of the said vessel. The respondents are the Board of Trustees of the Port of Cochin, (hereinafter referred to as the Port Trust ), and its Deputy Conservator. The vessel entered the Port of Cochin on June 6, 1984 and was berthed at Berth No. 2. On June 14,1984, the vessel, while being shifted from Berth No. 2 to the North Tanker Berth, dash