Citiraya Technology v Centillion Environment: Claim for Refund Due to Failure of Consideration
Citiraya Technology Sdn Bhd (in liquidation) sued Centillion Environment & Recycling Ltd in the High Court of Singapore on 22 October 2008, seeking a $2,000,000 refund for payments made under a Sale and Purchase Agreement for electronic recycling facilities. Citiraya claimed a total failure of consideration. Justice Choo Han Teck dismissed Citiraya's claim, finding that there was no total failure of consideration as Centillion had performed preparatory work under the agreement.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Action dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Citiraya Technology sued Centillion Environment for a $2,000,000 refund, claiming total failure of consideration under a Sale and Purchase Agreement. The court dismissed the claim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Citiraya Technology Sdn Bhd (in liquidation) | Plaintiff | Corporation | Claim Dismissed | Dismissed | Sadique Marican, Anand Kumar, Krishnamorthy |
| Centillion Environment & Recycling Ltd | Defendant | Corporation | Judgment for Defendant | Won | Thio Shen Yi, Lee Huay Yen Adeline, Leow Yuan An Clara Vivien |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Sadique Marican | Frontier Law Corporation |
| Anand Kumar | Frontier Law Corporation |
| Krishnamorthy | Frontier Law Corporation |
| Thio Shen Yi | TSMP Law Corporation |
| Lee Huay Yen Adeline | TSMP Law Corporation |
| Leow Yuan An Clara Vivien | TSMP Law Corporation |
4. Facts
- Citiraya Technology agreed to purchase electronic recycling facilities from Centillion Environment for $20,000,000.
- Citiraya paid Centillion $2,000,000, representing 10% of the total contract sum, upon acceptance of the proposal.
- The agreement included the production, building, and installation of the facilities.
- The facilities were designated for use at a site in Melaka, Malaysia.
- The Malacca Department of Environment rejected the incinerator component due to public complaints.
- Centillion claimed to have paid a subcontractor $1,655,000 for work on the facilities.
5. Formal Citations
- Citiraya Technology Sdn Bhd (in liquidation) v Centillion Environment & Recycling Ltd, Suit 36/2008, [2008] SGHC 183
6. Timeline
| Date | Event |
|---|---|
| Sale and Purchase Agreement signed | |
| Judgment reserved |
7. Legal Issues
- Total Failure of Consideration
- Outcome: The court held that there was no total failure of consideration.
- Category: Substantive
8. Remedies Sought
- Refund of $2,000,000
9. Cause of Actions
- Breach of Contract
- Total Failure of Consideration
10. Practice Areas
- Commercial Litigation
11. Industries
- Recycling
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
- Sale and Purchase Agreement
- Electronic Recycling Facilities
- Total Failure of Consideration
- Staged Payment
- Incinerator
- Malacca Project
15.2 Keywords
- contract
- failure of consideration
- refund
- recycling
- agreement
16. Subjects
- Contract Dispute
- Commercial Law
17. Areas of Law
- Contract Law
- Sale of Goods