BALAKRISHNA ERADI, ACTG C.J. :- This is a dispute between two statutory Corporations both of which are wholly owned by the Government of India and it is unfortunate that the matter should have been dragged to court and fought out in successive courts with all the attendant expenditure of public funds instead of its being discussed and settled at a high governmental level.

2. The appeal arises out of a suit O.S. No. 95 of 1969 instituted in the sub Court of Cochin by the Food Corporation of India against the Jayanthi Shipping Company Ltd. which has subsequently been taken over and amalgamated with the Shipping Corporation of India Ltd. The suit is for recovery of an amount of Rs. 30,590.38 by way of damages for alleged short delivery of goods which had been shipped at Bangkok for carriage to the Port of Cochin. The lower court upheld the claim except in respect of the amount representing proportionate insurance premium over the portion of the consignment not delivered and also the price of the gunny bags. It is against the decree so passed against it that the Shipping Corporation of India has preferred this appeal.

3. The plaintiff's case is that a consignment of 1,03,500 bag