[1] This is an appeal against the decision of the High COURT in which the learned Judge held that the Respondent/Defendant was not liable for a claim made by the Appellants/Plaintiffs pursuant to a marine cargo insurance policy (the policy) in respect of loss of 289 packages of oil palm machineries with accessories (the cargoes).

[2] We heard the appeal and after giving due considerations to respective submissions from both counsels, we allowed the appeal and now give our reasons for our decision.

Background Facts

[3] The 1st Appellant is the manufacturer of the cargoes and had sold them to the 2nd Appellant which is a subsidiary of the 1st Appellant. The cargoes were shipped to Bintulu in Sarawak by way of a barge, "Bina II" which was towed by a tugboat "Bina I".