Kiri Industries Ltd v Senda International Capital Ltd: Costs Against Non-Party

In Kiri Industries Ltd v Senda International Capital Ltd, the Singapore International Commercial Court, presided over by Judges Kannan Ramesh, Roger Giles, and Anselmo Reyes on December 9, 2021, with judgment reserved until December 27, 2021, addressed Kiri's application to make Longsheng jointly and severally liable for the costs payable by Senda in Suit 4 of 2017. The court declined the application, finding insufficient evidence of a close connection between Longsheng and Suit 4 or that Longsheng caused Kiri to incur costs in the suit.

1. Case Overview

1.1 Court

Singapore International Commercial Court

1.2 Outcome

Application denied.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Application to make Longsheng jointly liable for Senda's costs in Suit 4 was rejected. The court found no close connection or causation to justify the order.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Kannan RameshJudge of the High CourtYes
Roger GilesInternational JudgeNo
Anselmo ReyesInternational JudgeNo

4. Counsels

4. Facts

  1. Kiri applied for an order that Longsheng be made jointly and severally liable for the costs payable by Senda.
  2. Longsheng was not a party to Suit 4.
  3. Kiri argued Longsheng had control over Senda as its wholly owned subsidiary.
  4. Senda was the defendant in Suit 4, defending a claim brought by Kiri.
  5. Kiri highlighted a statement by Senda that it will not have the funds to comply with the buy-out order.

5. Formal Citations

  1. Kiri Industries Ltd v Senda International Capital Ltd and another, Suit No 4 of 2017, [2021] SGHC(I) 18

6. Timeline

DateEvent
Suit No 4 of 2017 filed
Hearing date
Judgment reserved

7. Legal Issues

  1. Costs against non-party
    • Outcome: The court declined to make Longsheng jointly and severally liable with Senda for Kiri’s costs.
    • Category: Procedural
    • Related Cases:
      • [2010] 3 SLR 542
  2. Joint and several liability for costs
    • Outcome: The court declined to impose joint and several liability on Longsheng.
    • Category: Procedural

8. Remedies Sought

  1. Order that Longsheng be made jointly and severally liable for the costs payable by Senda

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
DB Trustees (Hong Kong) Ltd v Consult Asia Pte Ltd and another appealCourt of AppealYes[2010] 3 SLR 542SingaporeCited for the test of whether a non-party should be made liable for costs.
SIC College of Business and Technology Pte Ltd v Yeo Poh Siah and othersHigh CourtYes[2016] 2 SLR 118SingaporeCited for the principle that a non-party being the sole shareholder of a company does not automatically mean the corporate veil will be lifted and costs ordered against the sole shareholder.
Montpelier Business Reorganisation Ltd v Armitage Jones LLP and othersHigh Court of Justice, Queen’s Bench DivisionYes[2017] EWHC 2273 (QB)England and WalesCited for the proposition that where a non-party has funded, stood to benefit from, and controlled a claim, it should be treated as the “real party” to the litigation and be made liable for costs.
Kiri Industries Ltd v Senda International Capital Ltd and anotherSingapore International Commercial CourtYes[2021] SGHC(I) 16SingaporeThe Costs Judgment, in which costs orders were made against Senda.

13. Applicable Rules

Rule Name
Order 110 r 46(3)(c) of the Rules of Court (2014 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (2014 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Non-party costs
  • Joint and several liability
  • Close connection
  • Causation
  • Corporate veil
  • Insolvent company
  • Risk-free litigation

15.2 Keywords

  • Costs
  • Non-party
  • Liability
  • Singapore
  • Commercial Court

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Costs
  • Non-Party Liability