JUDGMENT :

S. SUJATHA, J.

1. This appeal by the plaintiff is directed against the judgment and decree dated 08.10.1999 passed in O.S. No. 6303/1993 by the learned II Addl. City Civil Judge (CCH-17), City Civil Court, Bengaluru ('Trial Court' for short).

2. For the sake of convenience, the parties are referred to as per their status before the Trial Court.

3. The plaintiff is a registered company engaged in the business of manufacture and sale of various components of Colour Television sets, Black and White Television sets, Computer Monitors etc., The plaintiff has its factory at 17th K.M. Old Madras Road, Bangalore.

4. The defendant No. 1 is a Bank, the defendant No. 2 is the Union of India and the defendant No. 3 is the Collector of Customs, the defendant Nos. 4 and 5 are the employees of the plaintiff's company.

5. The plaint averments are that the plaintiff in the course of its manufacturing activities, imports several components and parts and these imported goods are cleared by the customs authority at Madras port or Bangalore air cargo complex as per the prescribed procedure. The plaintiff submits that sometimes the delivery of the goods imported is taken immediately at the Madras port itself by paying appropriate customs duty. Often, the imported goods are brought from Madras and warehoused in the customs bonded warehouse at Bangalore on the plaintiff filing a Bill of Entry before the Madras Customs and following the prescribed procedure for lodgement under the Customs Act, 1962 and the Rules framed thereunder. One such bonded warehouse was in the plaintiff's premises and was maintained by the Central Warehousing Corporation. The plaintiff depending upon its requirement for production activities, would take steps for debonding such goods as are required. The procedure adopted for clearing/debonding and assessment of duty of the imported goods is briefly explained as under:

An Exbond Bill of entry in five sets is prepared in conformity with the Bill of Entry filed when the goods were imported and bonded, giving full description of the goods required to be debonded, its value, shipment details, port of shipment, country of origin, customs duty and additional duty payable along with other particulars as required under the Customs Tariff Act, 1975 and filed along with a working sheet computing the customs duty, with the Customs Division office at Millers Road, Bangalore. The Customs Division, Bangalore after assessment on verifying the particulars, would return the Bill of entry along with TR-6 challan (in 4 sets) bearing the endorsement of the Customs Division in the respective column to the Appellant. The duty so assessed, is to be paid under the TR-6 Challans.

6. The customs duty was being paid by the plaintiff and accepted by the defendant No. 1 - Bank on account of the customs authorities at the designated branch of Canara Bank in Bangalore City (defendant No. 1) as the said bank was acting as an authorized agent as per the public notice dated 12.03.1986 issued by the defendant No. 3. Defendant Nos. 2 and 3 would release the goods only on proof of payment of the customs duty through the defendant No. 1 - Bank. The said duty was paid by cheques drawn by the Authorized Officer of the plaintiff - company under TR-6 challans. The customs duty was paid by cheques drawn by the authorized officer of plaintiff's company under TR-6 challans. After the cheques being honoured, Bank would retain the challans with receipt of payment endorsed thereon with the Bank stamp and signature of the receiving officer. Two copies would be delivered to the plaintiff - company, one to be retained by the company and the other to be forwarded to the Customs Superintendent who would enter it in the bond register and issue pass out order, on handing over the same to the inspector of the warehouse, goods were released. Amongst the two copies of TR-6 challans retained by the bank, one was forwarded to the customs department and the other was retained by the b