SH Sameyeh Pte Ltd v Hassan's Carpets Pte Ltd: Consignment Agreement Dispute

In SH Sameyeh Pte Ltd v Hassan's Carpets Pte Ltd, the High Court of Singapore heard an appeal regarding a dispute over a consignment agreement for a carpet. SH Sameyeh Pte Ltd claimed US$8,000 from Hassan's Carpets Pte Ltd for a carpet given on consignment. The court, led by Judicial Commissioner Choo Han Teck, dismissed the appeal, finding that the contract was ostensibly made between the plaintiffs and Baba on behalf of Hassan's Carpets Co Ltd (Bangkok) and there was no basis to lift the corporate veil to hold Hassan's Carpets Pte Ltd liable.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

A dispute over a consignment agreement for a carpet. The court dismissed the appeal, finding no basis to lift the corporate veil.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
SH Sameyeh Pte LtdAppellant, PlaintiffCorporationAppeal dismissedLost
Hassan's Carpets Pte LtdRespondent, DefendantCorporationAppeal dismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Andrew J HanamHanam & Co
Sumitri MenonJansen, Menon & Lee

4. Facts

  1. The plaintiffs and defendants are carpet dealers in Singapore.
  2. The plaintiffs claimed US$8,000 for a carpet given to the defendants on consignment.
  3. An oral agreement was allegedly reached between Sameyeh and Baba in Bangkok.
  4. The defendants denied knowledge of the transaction, claiming Baba acted for HCB or himself.
  5. The trial judge found the contract was between the plaintiffs and Baba in his personal capacity.
  6. The plaintiffs argued HCB and the defendants were a single economic unit.
  7. The trial judge refused the plaintiffs' application to amend the claim based on the 'single economic unit' point.

5. Formal Citations

  1. SH Sameyeh Pte Ltd v Hassan's Carpets Pte Ltd, DCA 30/2000, [2001] SGHC 179

6. Timeline

DateEvent
Oral agreement reached between Sameyeh and Baba regarding the consignment of a carpet.
Baba collected the kazak from Isphan Carpets.
Baba gave Sameyeh a letter acknowledging receipt of the kazak and the terms of the agreement.
Case DCA 30/2000 filed.
Judgment delivered.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the contract was ostensibly made between the plaintiffs and Baba on behalf of HCB.
    • Category: Substantive
  2. Lifting the Corporate Veil
    • Outcome: The court declined to lift the corporate veil.
    • Category: Substantive
    • Related Cases:
      • [1897] AC 22
      • [1976] 3 All ER 462

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Retail

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Saloman v A SalomanHouse of LordsYes[1897] AC 22England and WalesCited for the principle that an incorporated company has a distinct and separate legal entity from that of its shareholders.
DHN Food Distributors Ltd and Ors v London Borough of Tower HamletsCourt of AppealNo[1976] 3 All ER 462England and WalesCited regarding the concept of a 'single economic unit' in relation to corporate entities, but distinguished by the court.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Consignment
  • Kazak carpet
  • Single economic unit
  • Corporate veil
  • Alter ego

15.2 Keywords

  • carpet
  • consignment
  • breach of contract
  • corporate veil
  • SH Sameyeh Pte Ltd
  • Hassan's Carpets Pte Ltd

17. Areas of Law

Area NameRelevance Score
Contract Law75
Lifting corporate veil70
Single Economic Unit65
Company Law60
Agency Law50
Commercial Disputes40

16. Subjects

  • Contract Dispute
  • Corporate Law