Capital Realty v Chip Thye: Loan Agreement Dispute & Corporate Liability

Capital Realty Pte Ltd sued Chip Thye Enterprises (Pte) Ltd in the High Court of Singapore on March 31, 2000, seeking to recover $500,000, the outstanding balance of a loan. Capital Realty claimed that Chip Thye was the borrower, while Chip Thye argued that the loan was made to Articon Construction Pte Ltd. The court dismissed Capital Realty's claim, finding insufficient evidence to prove that Chip Thye was the borrower.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Claim dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Capital Realty sued Chip Thye over a loan. The court dismissed the claim, finding insufficient evidence that Chip Thye was the borrower.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Capital Realty Pte LtdPlaintiffCorporationClaim DismissedLost
Chip Thye Enterprises (Pte) LtdDefendantCorporationJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Christopher Tan Teow HinAllen & Gledhill
Yang Ing LoongAllen & Gledhill
Alfonso AngA. Ang, Seah & Hoe
Nicholas Chan Wai-KuinA. Ang, Seah & Hoe

4. Facts

  1. Capital Realty loaned $1,400,000 to Lee Chin Kian between November 1996 and May 1998.
  2. The loans were made via cash cheques drawn on Capital Realty's account.
  3. Lee Chin Kian deposited the cheques into Articon's account.
  4. Articon was a construction company in which Chip Thye held a 35% shareholding.
  5. The loans were intended for the Tanglin Hill Project.
  6. An audit confirmation signed by Phay Gi Mo acknowledged that Chip Thye owed Capital Realty $300,000.
  7. Articon made partial payments on the loan.

5. Formal Citations

  1. Capital Realty Pte Ltd v Chip Thye Enterprises (Pte) Ltd, Suit 1478/1999, [2000] SGHC 52

6. Timeline

DateEvent
Capital Realty Pte Ltd incorporated.
Loans made between November 1996 and May 1998.
Loans made between November 1996 and May 1998.
Audit confirmation signed by Phay Gi Mo.
Ang Poon Soon died.
Suit filed (Suit 1478/1999).
Judgment issued.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found insufficient evidence to prove that the defendant was the borrower, thus no breach of contract was established.
    • Category: Substantive
    • Related Cases:
      • [1999] 3 SLR 354
  2. Corporate Liability
    • Outcome: The court found insufficient evidence to establish that the defendant was liable for the loan.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Debt Recovery

10. Practice Areas

  • Commercial Litigation
  • Construction Disputes

11. Industries

  • Construction
  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Gobind Lalwani v Basco Enterprises Pte LtdHigh CourtYes[1999] 3 SLR 354SingaporeCited regarding the evidentiary weight of an audit confirmation letter as prima facie evidence of debt.

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

  • Loan Agreement
  • Audit Confirmation
  • Sub-contract
  • Construction Contract
  • Shareholding
  • Personal Guarantee

15.2 Keywords

  • Loan
  • Construction
  • Contract
  • Debt
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Commercial Disputes80
Contract Law75
Debt Recovery60
Oral contract50
Company Law40
Construction Contract35
Guarantees and indemnities30

16. Subjects

  • Contract Law
  • Construction Law
  • Corporate Law