Judgement

SUBBA RAO, J. : The appellant, Ellerman Bucknall Steamship Company Ltd. hereinafter called the shipowners, are a limited liability company incorporated under the law in the United Kingdom carrying on business as common carriers by sea. They own a ship named "City of Lucknow". Messrs, Best and Co. Ltd., having their office at Madras, are the local agents of the shipowners.

2. Sha Misrimal Bherajee, the respondent herein, hereinafter called the buyer, entered into two contracts with the British Mercantile Company Limited. New York, hereinafter called the seller, for the purchase of Fresh Monsanto Polystyrene Injection Moulding Powder (not reground) in granules manufactured by Monsanto Chemical of New York. In respect of the first contract, the purchaser placed two indents dated December 26, 1950, and December 27, 1950, for the said stuff of value Rs. 13,500 and Rs. 6,750 respectively. The buyer entered into a second contract with the seller for the purchase of 24 drums of the same material of the value of Rs. 16,000 under an indent dated January 23, 1951. In respect of the first contract and indents the buyer opened and confirmed an irrevocable Letter of Credit No. 4748 dated