Court Orders CNY 48,000 Repayment in Loan Dispute
In a recent civil case, an individual lender successfully obtained a judgment against a garment company for an unpaid loan of 48,000 CNY. The court ruled that the defendant must repay the full amount plus interest for delayed payment. The case highlights the enforceability of simple loan agreements when proper written evidence is presented.
The plaintiff, Mr. Chen, a resident of Eastern China City, claimed that the defendant, Eastern China City Garments Co., Ltd, had borrowed money from him on two separate occasions. The first loan of an undisclosed amount occurred on October 21, 2011, and the second on October 22, 2011, totaling 48,000 CNY. After receiving the funds, the company failed to return the money despite Mr. Chen’s demands. He subsequently filed a lawsuit seeking repayment of the full principal.
The case was filed on February 14, 2012, and the court held a hearing on March 19, 2012. Mr. Chen appeared in person, but the defendant company did not attend despite being properly served with a summons. The court proceeded with a default hearing. Mr. Chen presented two written receipts as evidence of the loans. The court reviewed these documents and accepted them as proof of the borrowing.
The court found that a valid loan relationship existed between Mr. Chen and the garment company. The evidence showed that the defendant had received 48,000 CNY from the plaintiff but had not repaid it. The court held that the defendant bore a civil obligation to return the borrowed money. Mr. Chen’s claim was deemed reasonable and was fully supported. The defendant’s failure to appear was considered a waiver of its right to contest the allegations.
According to Article 206 of the Contract Law of China, a borrower must repay the loan within the agreed period, or if no period is agreed, upon the lender’s demand. Since the defendant did not repay, it was in breach. The court also applied Article 130 of the Civil Procedure Law, which allows a default judgment when a defendant fails to attend without good reason. Additionally, the court ordered that if the payment was delayed beyond the ten-day deadline, the defendant would have to pay double the interest on the overdue amount.
The court ordered Eastern China City Garments Co., Ltd to repay Mr. Chen 48,000 CNY within ten days of the judgment taking effect. The defendant was also required to cover half of the court costs, amounting to 500 CNY. This case serves as a reminder that written receipts can be sufficient to prove a loan. Parties who fail to respond to legal proceedings risk losing by default. The judgment reinforces the principle that loans must be repaid as agreed.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.