Are these seats taken?

My lunch partner and I were having lunch yesterday. There were only two of us but the smaller two seater tables were taken up. There was a 6 seater available. We sat down at one end and as there was no one beside me, I placed my handbag on the chair next to me. Now, I don't usually do this. I usually place my bag behind me on my seat, sling it around the chair back rest or place it on the floor (no, I'm not anal about the floor dirt touching my bag - there is such a thing as babywipes for later). But the seat was empty and I saw people already starting to finish their lunch and leave.

I'm digging into my chicken wing when this lady swoops down beside me, gesturing at the 4 empty seats.
She makes it a point to specifically point to the chair my handbag is on.

The Chinese lady asks (in a very polished, Americanised English accent) if those seats (she still points to my handbag) are taken. I shook my head, said, 'No, go ahead' and removed my handbag from the empty seat.

The lady yells and waves at her hubby and kid in a kiasu sort of way (Hmm....I'm thinking.....3 of them....where's the fourth person?)

She then tells them where to sit and puts her handbag on the seat I had just removed my handbag from.

My lunch partner raises an eyebrow at me. I raise my eyebrow at him. We both stare at the lady's handbag again and I think of my handbag now squashed on my lap between my flabby tummy and my plate of chicken wing. We stare at each other in silence; he's grinning and I'm shaking my head, shrugging my shoulders and rolling my eyes. I had to bite my tongue from asking that lady if my handbag could share the seat with her handbag.

By the way, when she started eating and talking to her hubby, her polished English accent had given way to none other than Singlish.