( 1 ) PLAINTIFF filed this suit, inter alia, alleging that it is a partnership concern carrying on business of export of ready-made garments. Subhash Chander Vij, being one of its partners is competent to institute the suit and sign and verify the plaint on behalf of the firm. Plaintiff through its agent M/s. Continental Carriers, New Delhi, on 31st July, 1976 delivered a consignment of ready-made garments of the value of Rs. 1,48,200. 00 to the Defendant for carriage to London and Airway bill No. . 220-5673 9174 dated 31st July, 1976 was accordingly issued by the Defendant. On 3rd August, 1976 the Plaintiff handed over documents as noted in para 4 of the plaint to State Bank of India, Foreign Exchange Department, New Delhi for collection of the amount through is counterpart State Bank of India, London, UK from M/s. R. K. Fashion Ltd. , to whom the said consignment was to be delivered. On 6th August, 1976 the State Bank of India, Foreign Exchange Department, New Delhi branch sent the documents to State Bank of India, South Hall branch, Middlesex, UK for handing them over to M/s. R. K. Fashion Ltd. against payment. State Bank of India, UK branch sent a number of reminders to said M/s. R. K. Fashion Ltd. to retire the documents but it failed to do so. On account of the lapse of said M/s. R. K. Fashion Ltd. , in not retiring the documents and taking delivery of the consignment the Plaintiff had to pay Rs. 48,838. 45 towards demurrage to the Defendant.

( 2 ) IT is further pleaded that the Plaintiff in place of said M/s. RK. Fashion Ltd. nominated M/s. Kay Imports and Exports as consignee and this change was communicated to the Defendant by M/s. Continental Carriers Ltd. through the letter dated 22nd April, 1977. Defendant was asked to deliver the consignment to said M/s. Kay Imports and Exports. By the letter dated 20th May, 1977 the Defendant informed M/s. Continental Carrers that it has received a telex information through London office that the consignment has been delivered to M/s. Express Enterprises with information to M/s. Kay Imports and Exports. However, the enquiries made by the Plaintiff from M/s. Kay Imports and Exports revealed, that M/s. Express Enterprises was not the agent of M/s. Kay Imports and Exports nor did it take delivery of the consignment on behalf of M/s. Kay Imports and Exports. It is alleged that M/s. Express Enterprises by the letter dated 28th May, 1977 informed said M/s. Kay Imports and Exports that the consignment was presently held in a bonded warehouse on the instructions of M/s R K. Fashion Ltd. and should M/s. Kay Imports and Exports wish fe release the consignment a release note from M/s. R. K. Fashion Ltd. was needed. M/s. Continental Cam rs enquired from the Defendant through the letter dated 30th June, 1977 whether said M/s Express Enterprises had taken delivery of the consignment either on behalf of M/s. Kay Imports and Exports or M/s. R. K. Fashion Ltd. . By the letter dated 8th August, 1977 Defendant informed M/s. Continental Carriers that consignment was released lo consignee s agent M/s. Express Enterprises for delivery to a bonded warehouse. In reply to this letter M/s. Continental Carriers by the letter dated 22nd August 1977 informed the Defendant that M/s. Kay Imports and Exports never gave instructions to anybody for storing the consignment in question in a bonded warehouse. It was also noted in that letter that M/s. Kay Imports and Exports approached the London office of the Defendant for taking delivery of the consignment but they were informed that the same had already been handed over on 5th May, 1977 to M/s. R. K. Fashion Ltd. through its agent M/s. Express Enterprises. By the letter dated 7th September, 1977 said M/s. Kay Imports and Exports repudiated its liability to pay the amount of Rs. 1,48,200. 00 being the value of the consignment on the grounds of its not having taken delivery and M/s. Express Enterprises being not its agent. The Defendant had unauth