PT Sandipala Arthaputra v STMicroelectronics Asia Pacific Pte Ltd and others [2017] SGHC 191

Introduction

This action arose out of a contract between the plaintiff, PT Sandipala Arthaputra (“Sandipala”), and the second defendant, Oxel Systems Pte Ltd (“Oxel”), for the supply of microchips (“chips”) from the first defendant, STMicroelectronics Asia Pacific Pte Ltd (“ST-AP”). In PT Sandipala Arthraputra v STMicroElectronics Asia Pacific Pte Ltd and others [2017] SGHC 102 (“the Judgment”) which sets out the facts of the action in full, I dismissed Sandipala’s claims against the defendants, while allowing Oxel’s counterclaim against Sandipala and the second and third defendants in the counterclaim, Mr Paulus Tannos (“Mr Tannos”) and Ms Catherine Tannos (“Ms Tannos”).

Oxel has requested clarifications with regard to [284(c)] of the Judgment, in which I awarded Oxel interest in respect of the other awards it was entitled to. These clarifications relate to details such as the dates from which the awarded sums of interest are to run. All parties attended before me in chambers on 1 August 2017 for a short hearing on this issue, where counsel for Sandipala, Mr Tannos and Ms Tannos confirmed that his clients had no objections to the clarifications proposed by Oxel. Accordingly, I provide the necessary clarifications in this supplemental judgment.

Orders made in the Judgment

I set out the relevant parts in [284(b)-(c)] of the Judgment here:

Clarifications on interest to be paid to Oxel at the contractual rate

At [284(c)(i)] of the Judgment, I awarded Oxel interest “at the contractual rate of 1.5% per month for the price of the chips that was assessed at US$5,406,378.72 and the down payments assessed at US$279,813.36.” This contractual rate was based on Oxel’s standard terms and conditions, incorporated by reference into the agreement of 9 November 2011 under which Oxel was to supply 100m chips to Sandipala (“the Agreement”) (see [34] of the Judgment). Oxel’s standard terms and conditions provided that all invoiced sums were due and payable to Oxel by the 30th day following the dates of the invoices, and that interest would be imposed on all late payments at a rate of 1.5% per month.

Interest in respect of the US$5,406,378.72 award

My award of US$5,406,378.72 to Oxel was in respect of 11,263,289 chips which were delivered to Sandipala between January to April 2012. During this period, Oxel issued 11 invoices to Sandipala seeking payment for the delivered chips, but Sandipala did not settle these invoices.

The interest on each of the 11 invoiced sums shall therefore run from the 31st day following the date of each invoice, at the contractual rate of 1.5% per month, as set out in the following table:

Interest in respect of the US$279,813.36 award

My award of US$279,813.36 to Oxel was in respect of the unpaid 20% down payment on 2,331,778 chips delivered to Sandipala (see [258] of the Judgment). On 26 January 2012, Oxel issued an invoice to Sandipala for this down payment. Under Oxel’s standard terms and conditions, the down payment was due and payable to Oxel by 25 February 2012, ie, 30 days after the invoice date.

The interest in respect of the sum of US$279,813.36 shall therefore run from 26 February 2012, at the contractual rate of 1.5% per month.

Clarifications on interest to be paid to Oxel at the usual rate

At [284(c)(ii)] of the Judgment, I awarded Oxel interest “at the usual rate for the other awards.” Section 12 of the Civil Law Act (Cap 43) empowers the High Court to order pre-judgment interest on any debt or damages to be recovered. Parties did not dispute that the “usual rate” of interest should be pegged at 5.33% per annum as directed in paras 4 and 5 of the Supreme Court Practice Directions No 1 of 2007.

Counsel for Oxel specifically sought clarification on the following two sums:

Interest in respect of the US$15,960,654.65 award

The interest on each of the sums comprising the US$15,960,654.65 award shall run at the default rate of 5.33% per annum, in the manner set out in the following table:

I note that these sums take into account Sandipala’s payment of US$7,374,403.24 for 1,068,489 chips. These dates represent the dates of the latest five of Oxel’s seven payments to Danatel and Logii, plus one day.

Interest in respect of the US$175,336.44 award

According to the Agreement, Oxel was to deliver all 100m chips to Sandipala by the end of the fourth quarter of 2012, thus the latest possible invoice date would have been 31 December 2012. Any invoiced sum would have been due and payable to Oxel by the 30th day following the invoice date, and interest should start running one day thereafter.

The interest in respect of the sum of US$175,336.44 shall therefore run from 31 January 2013, at the default rate of 5.33% per annum.