CNY 48,917 Food Supply Debt: Company Canteen Vendor Wins Default Judgment After Factory Closure

A vegetable vendor who supplied daily produce to a furniture factory’s employee canteen sued for CNY 48,917.40 in unpaid invoices after the factory ceased operations. The county court entered a default judgment when the furniture company failed to appear, ordering payment within three days of the judgment becoming effective.

The vendor, Mr. Lu, had been delivering fresh vegetables, meat, and other food items to the defendant company’s canteen on a daily basis. Each delivery was received and signed for by the office administrator responsible for general affairs, creating a running account. By December 23, 2011, the accumulated unpaid balance had reached CNY 48,917.40. The furniture company, a foreign-invested enterprise located in an industrial zone, had already stopped production by that time, rendering further deliveries impossible and repayment unlikely without legal action.

Mr. Lu filed suit on February 6, 2012, submitting his identity documents, the defendant’s business registration records, and a single settlement statement bearing the defendant’s acknowledgment of the CNY 48,917.40 debt. The court converted the case to ordinary procedure and scheduled a three-judge panel due to the defendant’s failure to appear. Proper legal notice was served, but the furniture company neither attended the hearing, submitted a written defense, nor provided any evidence.

Under civil procedure rules, a defendant who fails to appear after proper service is deemed to have waived the right to challenge the plaintiff’s evidence and legal arguments. The court examined the settlement statement and found it authentic, complete, and corroborated by the vendor’s consistent testimony. Because the defendant offered no rebuttal, the court treated the stated balance as established fact.

The legal basis for the claim was straightforward: under the Contract Law, when one party to a sales relationship has delivered goods and the other party has accepted them, the buyer must pay the agreed price. The furniture company’s acceptance of daily produce deliveries over an extended period created an enforceable payment obligation. Its cessation of business operations did not extinguish the debt. The judgment ordered the defendant to pay CNY 48,917.40 within three days, with late-payment interest at double the statutory rate for any balance remaining beyond the compliance window. Court costs of CNY 1,023 were assessed against the defendant.

This article is provided for informational purposes only and does not constitute legal advice. Commercial debt recovery procedures and timelines vary across jurisdictions. Consult a qualified attorney for guidance on your specific situation.