( 1 ) PAKISTAN waged war on India in 1965 and captured "m. V. Shakeela" near Chalna in East Pakistan. She belonged to the plaintiffs and was mortgaged to the last defendant. She was covered by a valued policy of Rs. 10 lacs by the Insurer-defendants against the perils of "capture, seizure, arrest, restraint or detainment and the consequences thereof or any attempt thereat; and from the consequences of hostilities of warlike operations, whether there be a declaration of war or not". She was condemned as a lawful prize by the Prize Court at Dacca and was made over to the Government of Pakistan in lieu of her sale. Thereafter, a suit was filed in the Court of the subordinate Judge at Khulna in East Pakistan against the plaintiffs by their Pakistani agents claiming over Rs. 2 lacs from the plaintiffs and she was attached in the hands of the Government of Pakistan pursuant to an order of that court. Then an agreement was entered into by and between the two Governments for her exchange with the "elahi Bux", a Pakistani merchant ship arrested by our Navy during the hostilities, but these two vessels were not ultimately exchanged.

( 2 ) IN these circumstances the plaintiffs