Borrower Ordered to Repay 20,000 Yuan Personal Loan After Failing to Appear in Court

A court in Zhejiang Province has ordered a borrower to repay a 20,000 yuan personal loan after he failed to appear in court to contest the claim.

Case Background

The plaintiff, Mr. Wu, lent 20,000 yuan to Mr. Ding in June 2011. According to court documents, the two men had been introduced by a mutual friend. Mr. Ding claimed he needed the money urgently for business turnover.

Mr. Wu, feeling obligated due to their friendship, transferred the money the same day and obtained a handwritten IOU (借条) from Mr. Ding. The IOU stated: “Today borrowed from Wu Zhongjie the sum of twenty thousand yuan. Borrower: Ding Xuesong.”

The Dispute

After the loan was due, Mr. Wu made multiple attempts to recover the money. Mr. Ding refused to repay, claiming he had no funds available. With no other option, Mr. Wu filed a lawsuit at Daishan County People’s Court in February 2012.

Court Proceedings

The court scheduled a hearing and properly summoned Mr. Ding to appear. However, Mr. Ding neither attended the hearing nor submitted any written defense or evidence to challenge Mr. Wu’s claim.

Under Chinese civil procedure law, when a defendant fails to appear without valid reason, the court may proceed with the hearing and make a judgment based solely on the plaintiff’s evidence.

Court’s Decision

The court found that Mr. Wu had provided sufficient evidence to prove the loan relationship:

• A copy of his ID confirming his identity
• The original IOU signed by Mr. Ding

The court ruled that the loan relationship was clear and legally binding. On March 16, 2012, the court ordered Mr. Ding to repay the full 20,000 yuan within 10 days of the judgment taking effect.

Legal Basis

The court applied Article 206 of the Contract Law (borrower’s duty to repay) and Article 130 of the Civil Procedure Law (default judgment for absent defendants).

Practical Lessons

For lenders: Always obtain written evidence (IOU) when lending money. The IOU should clearly state the amount, date, and borrower’s signature.

For borrowers: Ignoring a court summons will not make the case go away. The court can and will enter a default judgment against you, requiring repayment plus interest.

Case citation: (2012) Zhou Dai Shang Chu Zi No. 56, Daishan County People’s Court, Zhejiang Province.