JUDGMENT

YOGESHWAR DAYAL, J.:—These are two appeals being Nos. 4611 of 1992 and 4612 of 1992 filed by M/s. Bihar Supply Syndicate, plaintiff in the suit and United Salt Works and Industries Ltd., defendant No. 3 in the suit respectively, against the judgment of the High Court of Bombay dated 16th and 17th January, 1992.

2. By the impugned judgment the Division Bench of the High Court, on an appeal, by the National Insurance Company Limited, defendant No. 4 in the suit, accepted the appeal against the judgment and decree dated 30th September, 1987 passed by the single Judge in Suit No. 641 of 1973 and dismissed the suit decreed by the single Judge against it and defendants Nos. 1, 2 and 3.

3. The single Judge had passed a decree for a sum of Rs. 10,49,750/- in favour of the plaintiff/ appellant in Civil Appeal No. 4611 of 1992, along with interest on Rs. 9,50,000,/- at the rate of 12 per annum from 17th June, 1973 till realisation and costs of the suit.

4. The facts giving rise to the filing of Civil Appeal No. 4611 of 1992 filed by the plaintiff may be noticed.

5. The plaintiff/ appellant is a partnership concern carrying on business as dealers in salt. Defendant No. 1, M/s. Asiatic Navigation Incorporated is a Company incorporated in United States and is owner of vessel known as M. V. Atlas Navigator. The vessel is registered at Panama and flies the Panama Flag. Defendant No. 1 is carrying on business in Bombay through its agent. Defendant No. 2, namely, M/s. Thakur Shipping Company Ltd. is a Public Ltd. Company carrying on business of shipping and operate the vessel Atlas Navigator belonging to defendant No. 1. Defendant No. 3, United Salt Works and Industries Ltd., who is appellant in Civil Appeal No. 4612 of 1992 is also a Ltd. Company and carry on business in Bombay as manufacturers, merchants and charterers. Defendant No. 4 is a General Insurance Company who, after the nationalisation of the General Insurance business had succeeded to the interest of the Skandia Insurance Company Ltd., a Company registered in Sweden.

6. By a Charter Party agreement dated 17th June, 1972, defendant No. 2, chartered the vessel Atlas Navigator to defendant No. 3 for loading salt at Kandla Port in Gujarat and for carrying on the same to Calcutta Port. Clause 14 of the agreement enabled defendant No. 3 to sublet the right under the Charter Party agreement and defendant No. 3 sublet the said right in favour of the plaintiff. The plaintiff had purchased from defendant No. 3 itself a cargo of 4434 metric tons of crushed salt at the rate of Rs. 33/- per metric ion and 2741 metric tons of uncrushed salt at the rate of Rs. 30/- per metric ton and had paid a sum of Rs. 6,82,000/- towards the price of the salt to defendant No. 3. The plaintiff had directly paid to defendant No. 2 the freight amount of Rs. 3,95,000/- for transport of cargo from Kandla to Calcutta. Defendant No.2 had agreed to arrange for carriage of salt from Kandla to Calcutta as per the Bill of Lading issued in that behalf in favour of the plaintiff. Defendant No. 2 had informed the defendant No. 3 that the plaintiff is accepted as sub-charterers and necessary steps will be taken to inform the plaintiff about the movement of the vessel. The plaintiff had itself insured the cargo through Skandia Insurance Company against the Insurance Policy dated 12th July, 1972 and the sum insured was Rupees 9,50,000/-. The policy was for the voyage from Kandla to Calcutta with Institute Cargo Clauses (FPA) cover attached including warehouse to warehouse risks, including sling loss but excluding war and SRCC risks. Defendant No. 4 is the successor to the Skandia Insurance Company, as stated earlier.

7. The plaintiff loaded 7155 metric tons of salt on the said Atlas Navigator at Kandla for shipment to Calcutta and loading was completed on July 4, 1972. The vessel left Kandla on July 9, 1972 and on July 28, 1972 the plaintiff received a telex message from defendant No. 2 informing that the vessel was at,