( 1 ) THE appellant-United India Fire and General Insurance Company Limited obtained two letters, one, dated Feb. 5, 1973 letter of subrogation and the other, letter of assignment of even date Ex. A-3, from M/s. V. K. Brothers, a partnership firm, second respondent herein with a right to recover the suit claim against Sri Palaniappa Transport Carriers, first respondent herein. The facts leading thereto are that M/s. V. K. Brothers (second respondent) consigned six bales of cloth to be delivered at Madras and entrusted to the first respondent Transport Carriers, for delivery thereof to the consignee. Before consigning, the second respondent also insured the six bales of cloth with the appellant under a policy. When the goods were delivered at Madras, they were found to be damaged and the authorised valuers made valuation thereof at Rs. 7,199-25 ps. It was found that the first respondent was responsible for causing damage and that the damage was caused due to their negligence. But pursuant to Policy of Insurance covered with the appellant, the appellant made payment thereof to the second respondent and the appellant obtained the letters of subrogation and the assignme