JUDGMENT

THOMMEN, J.:—We grant leave in SLP(C) No. 10542 of 1985 which arises from the order of the Division Bench of the Andhra Pradesh High Court affirming the finding of the learned single Judge that the respondents suit against the appellants was maintainable and that the High Court was competent to try the same in exercise of its admiralty jurisdiction. The Transferred Case No. 27 of 1987 the appeal filed by defendants 1 and 2 against the judgment of the learned single Judge of the Andhra Pradesh High Court decreeing the suit. The case stood transferred to this Court pursuant to this Courts order dated 25-11-1986.

2. By our Order dated August 28,1991 we allowed Civil Appeal No. 3392 of 1991 filed by the 3rd defendant against the order of the High Court dismissing its petition for condonation of delay in presenting O.S.A.S.R. No. 39789 of 1988 in the High Court. We held that the appeal filed by the 3rd defendant had to be heard on the merits particularly on the question of law regarding the liability of the agent.

3. We shall now deal with the appeal arising from SLP(C) No. 10542 of 1985 where the only question is whether the learned Judges of the High Court have rightly held tha