JUDGMENT :

T. RAVINDRAN, J.

1. Challenge in this second appeal is made to the judgment and decree dated 20.09.2007 passed in A.S. No. 730 of 2006 on the file of the 7th Additional Judge, City Civil Court, Chennai, setting aside the judgment and decree dated 06.04.2006 passed in O.S. No. 5778 of 2000 on the file of the 1st Assistant Judge, City Civil Court, Chennai.

2. For the sake of convenience, the parties are referred to as per their rankings in the trial Court.

3. The plaintiffs in O.S. No. 5778 of 2000 are the appellants in this second appeal.

4. Suit for recovery of money.

5. Briefly stated, the case of the plaintiffs is that the first plaintiff placed an order with the German company viz., M/S. CEGKLEC ANLAGEN and ANTRIEES SYSTEM GMBH, Berlin, Germany, for the supply of one item of spare for KHIC crane vide order dated 21.07.1997 and opened an irrevocable L/C in favour of the German supplier and as per the invoice dated 04.06.1997, the value of the consignment on F.O.B. basis is DM 9300 at the exchange rate of Rs. 21.98 for 1 DM. The Rupee equivalent of which amounts to Rs. 2,04,600/-. The abovesaid consignment was entrusted to the defendant at Frankfurt to be safely delivered in