Chemical Supply Dispute Results in CNY 57,840 Judgment

A chemicals supplier in Eastern China successfully obtained a court order requiring a steel manufacturing company to pay CNY 57,840 for two batches of industrial chemicals that were delivered but never paid for. The court found that a valid sales contract existed and that the buyer had failed to meet its payment obligations.

The plaintiff, Yinghua Chemicals Factory, represented by its manager Mr. Liu, claimed that it sold two shipments of chemical products to the defendant, Juke Cold Drawn Steel Manufacturing Co., Ltd., represented by its legal representative Mr. Wang. The first shipment took place on June 8, 2011, and the second on October 28, 2011. The products included wire drawing film agent 66#, promoter, and lubricant. The total amount invoiced was CNY 57,840. After taking delivery, the defendant did not make any payment.

The case was heard on March 2, 2012, under a simplified procedure. Mr. Liu attended the hearing on behalf of the plaintiff. The defendant was properly served with a court summons but did not appear at the hearing without providing any justification. The plaintiff submitted two value-added tax invoices as evidence of the transaction and the amount owed. The court accepted these documents as proof of the purchase and delivery.

The court held that a lawful purchase and sale relationship had been established between the two companies. The evidence showed that the defendant had received the goods but had not paid the agreed price. The court therefore concluded that the defendant was liable for the outstanding amount. The court also noted that the defendant’s failure to appear in court, after being properly summoned and without a valid reason, meant that it waived its right to contest the plaintiff’s claims.

According to relevant law, specifically Articles 159 and 161 of the Contract Law of the People’s Republic of China, a buyer must pay the purchase price in the agreed amount and at the agreed time. When payment is not made as required, the seller is entitled to demand the full amount. The court further applied procedural rules that allow a default judgment when a defendant fails to appear without good cause. The plaintiff’s claim was found to be reasonable and fully supported by the evidence.

This case serves as a reminder that failure to pay for delivered goods can lead to a court judgment for the full invoiced amount, plus legal costs. The court ordered the defendant to pay CNY 57,840 within ten days of the judgment taking effect, and also imposed a penalty for delayed payment. The defendant was also ordered to bear the court fees. Businesses should ensure that all sales transactions are properly documented with invoices or receipts to protect their rights in the event of non-payment.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.