CNY 70,000 Quarry Partnership Debt: Second Installment With 10‰ Monthly Interest Enforced
Three partners who operated a stone quarry together dissolved their venture and settled accounts, resulting in one partner owing another CNY 130,000 payable in two installments. When the first installment of CNY 60,000 went unpaid and was reduced to a separate court judgment already in execution, the creditor returned to court for the remaining CNY 70,000. The county court ordered the debtor to pay the second installment plus interest at ten per mille per month retroactive to the date the debt was first documented, totaling more than five years of accrued interest by the time of judgment.
The original partnership was formed in February 2006 among Mr. Zhang, Mr. Li, and a third individual surnamed Rong. They operated a stone-crushing facility in a rural county for approximately nine months before dissolving the arrangement. A settlement and accounting took place on November 16, 2006, witnessed by three individuals, resulting in Mr. Li issuing a written instrument acknowledging a debt of CNY 130,000 to Mr. Zhang. The repayment schedule called for CNY 60,000 by the twentieth day of the twelfth lunar month of 2007 and the remaining CNY 70,000 by the end of 2008.
When the first installment fell due and Mr. Li refused to pay, Mr. Zhang sued and obtained a judgment for CNY 60,000 plus monthly interest at ten per mille from the date of the original debt instrument. That judgment entered the enforcement pipeline but the debt remained unsatisfied. The second installment of CNY 70,000 matured at year-end 2008, yet Mr. Li again refused payment despite repeated demands. Mr. Zhang filed the present lawsuit in December 2011 seeking the outstanding CNY 70,000 plus contractual interest.
The defendant failed to appear at trial despite being properly served with a summons, leading the court to proceed by default. The plaintiff submitted his identity documents, the prior judgment confirming the first installment, and the original debt instrument signed by the defendant. The court found the evidence sufficient and uncontradicted. Under civil law principles, a valid debt must be honored, and the defendant’s written acknowledgment created an enforceable obligation. The interest rate of ten per mille per month, while substantial, was documented in the original settlement and was not challenged by the absent defendant.
The court ordered Mr. Li to pay CNY 70,000 plus interest at ten per mille per month from November 16, 2006, until the principal was fully discharged. This meant that by the March 2012 judgment date, approximately sixty-three months of interest had accrued, potentially exceeding the principal itself. Court costs of CNY 1,500 were assessed against the defendant. The judgment carried the standard late-payment penalty of double statutory interest for any balance remaining beyond the ten-day compliance window.
This article is provided for informational purposes only and does not constitute legal advice. Partnership dissolution and debt enforcement rules vary across jurisdictions. Consult a qualified attorney for guidance on your specific situation.