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Whilst sailing independently between Bombay-Colombo to Chittagong with general military stores plus guns & ammunition, she had the mis-fortune to come across the Japanese submarine RO-110, commanded by Lt.Kazuo Ebato, on December 14th 1943.
The Daisy was torpedoed and sank within a few minutes, but all on board reached the lifeboats and rafts. However Ebato decided to ram and straff the rafts & lifeboats, killing 49 crew and passengers plus 4 gunners. Amazingly the Captain (RJ Weeks), 13 Crew & 2 Gunners survived and eventually arrived on the Indian shore near Masulipatnam.
The RO-110 and Ebato would eventually meet their fate in early February'44 whilst attacking the merchentmen Asphalion as part of Convoy JC36 from Colombo to Calcutta in the Bay of Bengal. She was sent to the bottom by the RIN sloop Jumna and the RAN minesweeping sloops Launceston and Ipswich