Lennard, J. in Singapore. The pleadings were as follows:--

STATEMENT OF CLAIM.

1. The plaintiffs were a Limited Company incorporated and registered

in Penang and were at all material times the owners ( inter

alia) of the following nine steamers:--

S.S. Pungah S.S. Perak S.S. Perlis

S.S. Jin Ho S.S. Renong S.S. Ghirbi

S.S. Omapere S.S. Pin Seng S.S. Trang

2. Previously to the 4th October, 1918 negotiations took place

between the Honourable the Colonial Secretary and the Shipping

Committee of the Straits Settlements on the one side and the

plaintiffs on the other side for the charter by the Government of

the Straits Settlements of the said nine steamers. In the course

of such negotiations the plaintiffs were requested to sign

charter-parties in the form known as the "Liner Requisition

Charter-Party." The plaintiffs did not agree to the rate of hire

offered for the said steamers and refused to sign any

charter-parties.

3. The said Shipping Committee was appointed on the 18th April, 1918

(Notification No. 469) by His Excellency the Governor in

pursuance of a power conferred upon him by a Regulation dated the

17th April, 1918 (Notification No. 468) under the Imperial Order

in Council of the 26th October, 1896 as amended by the Order of

His Majesty in Council of the 21st March, 1916 which were brought

into operation in the Colony by Proclamations dated the 6th

August, 1914 and the 20th May, 1916 respectively.

4. The said Shipping Committee was so appointed for the purpose of

advising and assisting the Agent of the Shipping Controller in

the East, if and when so required, in respect of all matters

relating to the chartering and requisitioning of ships in the

Colony by the Shipping Controller the Admiralty or the Government

of the Colony and for the purpose of seeing that the terms and

conditions set out in any charter-party entered into by the

Government and that all orders made by the Government in relation

to the chartering or requisitioning of ships are carried out and

obeyed.

The negotiations referred to above culminated in a conference which

took place on the 4th and 5th days of October 1918 at Penang between

the Honourable the Colonial Secretary and the Directors of the

plaintiff Company.

The plaintiffs contention was that the said steamers could only be

requisitioned under the said Orders in Council of the 26th October,

1898 and the 21st March, 1916 and that under such orders the plaintiffs

were entitled to have the compensation due to them assessed by a Board

under section 12 of the former Order.

The contention of the Honourable the Colonial Secretary was that the

said steamers could be requisitioned under the powers conferred by the

Regulations made under the Defence of the Realm Acts and that the rate

of hire could be fixed without reference to the plaintiffs. The

plaintiffs on the other hand contended that the Defence of the Realm

Acts and the Regulations made thereunder did not extend and had no

application to this Colony.

At no time during the said negotiations did the Honourable the Colonial

Secretary claim or purport to be acting by virtue of or to rely upon

the Royal Prerogative.

On the 5th October. 1918 after the conclusion of the said conference

the plaintiffs through their Managing Director received a letter from

the Honourable the Colonial Secretary in the following terms:--

Resident Councillors Office,

Penang, 5th October, 1918.

Sir,

In view of the refusal of your Directors to

Click Here to Read the rest of this document