Karuppannrgounder Paramasivam v Kearns Pte Ltd: Wash Out Contracts Dispute
In the High Court of Singapore, Karuppannrgounder Paramasivam, trading as Sri Maharaja Industries, sued Kearns Pte Ltd for USD149,740.00, alleging a balance outstanding on wash out trade contracts. The court, presided over by Justice Lai Kew Chai, dismissed the plaintiff's claim, finding no evidence of wash out contracts between the parties. The court allowed Kearns Pte Ltd's counterclaims for USD68,102.65 for palm oil supplied, USD4,241.67 for demurrage charges on the m.v. FALCON shipment, and USD8,231.40 for demurrage charges on the m.v. KUNIT shipment.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's claims dismissed with costs; Defendant's counterclaims allowed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court dismissed Karuppannrgounder Paramasivam's claim against Kearns Pte Ltd regarding wash out contracts, finding no evidence of such agreements. The court allowed Kearns Pte Ltd's counterclaims for costs of palm oil supplied and demurrage charges.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Karuppannrgounder Paramasivam t/a Sri Maharaja Industries | Plaintiff | Individual | Claim Dismissed | Lost | Lee Chin Soon of C S Lee |
| Kearns Pte Ltd | Defendant | Corporation | Counterclaim Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Kew Chai | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lee Chin Soon | C S Lee |
| S Magintharan | S Magin |
| Leslie Netto | Neeto Tan |
4. Facts
- The plaintiff claimed USD149,740.00 was due on debit notes for wash out trade.
- The defendant denied entering into wash out contracts with the plaintiff.
- The defendant claimed the debit notes were issued to facilitate the plaintiff's banking or foreign exchange requirements.
- The defendant asserted counterclaims for the cost of palm oil supplied and demurrage charges.
- The plaintiff's witness was proven wrong in cross-examination regarding the export of palm olein.
- The plaintiff's claim was initially described as commission fees, then amended to price difference for wash-out Olein contracts.
5. Formal Citations
- Karuppannrgounder Paramasivam t/a Sri Maharaja Industries v Kearns Pte Ltd, Suit 1188/2002/Z, [2003] SGHC 267
6. Timeline
| Date | Event |
|---|---|
| Physical sales and purchases commenced between the parties. | |
| Defendants issued a debit note for USD377,475.00 to the plaintiff. | |
| Debit Note No. 1 issued. | |
| Debit Notes No. 3, 4 and 5 issued. | |
| Defendants sold palm olein to Sivam & Company. | |
| Defendants sold palm olein to Sivam & Company. | |
| Debit Note No. 2 issued. | |
| Debit Notes No. 6 and 7 issued. | |
| Debit Note No. 8 issued. | |
| Debit Note No. 9 issued; Credit Note No. 2 issued. | |
| Debit Notes No. 10, 11 and 12 issued. | |
| Physical sales and purchases ceased between the parties. | |
| Credit Note No. 1 issued. | |
| Grainoil (M) Ltd sent a letter to the plaintiff advising of payment by the defendants. | |
| Plaintiff purportedly acknowledged receipt of USD5,000 and demanded payment of the balance. | |
| Plaintiff's solicitors issued a letter of demand. | |
| Statement of claim amended. | |
| Judgment delivered. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found no evidence of a contract between the parties.
- Category: Substantive
- Contractual Terms
- Outcome: The court determined that the debit notes did not signify any contract between the parties.
- Category: Substantive
- Contract Formation
- Outcome: The court found that the conduct of the parties did not support the existence of wash out contracts.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Commodities
- Palm Oil
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Wash out contracts
- Palm olein
- Debit notes
- Credit notes
- Demurrage
- Trade confirmations
- PORLA
- Letter of indemnity
15.2 Keywords
- Contract
- Wash out
- Palm oil
- Debit note
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Wash Out Contracts | 85 |
| Contract Law | 80 |
| Breach of Contract | 75 |
| Palm Oil Trading | 65 |
| Commercial Law | 60 |
| Evidence | 50 |
| Agency Law | 40 |
| Demurrage | 35 |
| Estoppel | 30 |
| Misrepresentation | 25 |
| Summary Judgement | 20 |
16. Subjects
- Contract Law
- International Trade
- Commodities Trading