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 Court

1.2 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 NameRoleTypeOutcomeOutcome TypeCounsels
Citiraya Technology Sdn Bhd (in liquidation)PlaintiffCorporationClaim DismissedDismissed
Centillion Environment & Recycling LtdDefendantCorporationJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Sadique MaricanFrontier Law Corporation
Anand KumarFrontier Law Corporation
KrishnamorthyFrontier Law Corporation
Thio Shen YiTSMP Law Corporation
Leow Yuan An Clara VivienTSMP Law Corporation
Lee Huay Yen AdelineTSMP Law Corporation

4. Facts

  1. Citiraya Technology agreed to purchase electronic recycling facilities from Centillion Environment for $20,000,000.
  2. Citiraya paid Centillion $2,000,000, representing 10% of the total contract sum, upon acceptance of the proposal.
  3. The agreement included the production, building, and installation of the facilities.
  4. The facilities were designated for use at a site in Melaka, Malaysia.
  5. The Malacca Department of Environment rejected the incinerator component due to public complaints.
  6. Centillion claimed to have paid a subcontractor $1,655,000 for work on the facilities.

5. Formal Citations

  1. Citiraya Technology Sdn Bhd (in liquidation) v Centillion Environment & Recycling Ltd, Suit 36/2008, [2008] SGHC 183

6. Timeline

DateEvent
Sale and Purchase Agreement signed
Judgment reserved

7. Legal Issues

  1. Total Failure of Consideration
    • Outcome: The court held that there was no total failure of consideration.
    • Category: Substantive

8. Remedies Sought

  1. 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 NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

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

  • 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

17. Areas of Law

Area NameRelevance Score
Total failure of consideration95
Contract Law90

16. Subjects

  • Contract Dispute
  • Commercial Law