Court Orders Payment of CNY 27,759 in Unpaid Supply Debt

A court in Southern China City has ruled in favor of a supplier, ordering a school catering company and its legal representative to pay a total of CNY 27,759 for unpaid dry goods. The dispute arose from a long-term supply arrangement for a college canteen. The court found the defendants liable after they failed to appear or respond to the proceedings.

The plaintiff, Mr. Liu, began supplying dry goods to the canteen operated by the defendant company, Southern Sunshine School Food Management Co., in 2009. On June 28, 2011, the company issued a written IOU confirming an outstanding balance of CNY 27,759 for the goods. The IOU stated the amount would be paid in full by July 15, 2011. The company’s legal representative, Mr. Long, signed the IOU as a debtor. The defendants did not make any payment by the deadline, prompting Mr. Liu to file a lawsuit seeking the full amount plus court costs.

The court conducted a public hearing after the defendants could not be located. Summons and complaint documents were served by publication as required by law. Neither the company nor Mr. Long appeared at the hearing or submitted any written defense. The plaintiff presented the original IOU as key evidence and testified in court. The court accepted the evidence as credible and proceeded with a default judgment based on the plaintiff’s submissions.

The court held that a valid contract existed between Mr. Liu and the defendant company. The agreement represented the genuine intentions of both parties and did not violate any mandatory legal provisions. The IOU served as clear proof of the debt. The court further found that Mr. Long, by signing the IOU as a debtor, voluntarily assumed joint liability for the amount. As the defendants failed to appear, the court deemed their absence as a waiver of their rights to present a defense or challenge the evidence.

According to relevant law, specifically Article 109 of the Contract Law, a debtor must pay the agreed price for goods received. The court also applied the Civil Procedure Code to allow a default judgment. The legal analysis confirmed that the IOU established an unambiguous obligation. Mr. Long’s signature alongside the company’s name indicated his personal acceptance of responsibility, making him jointly liable. The court therefore ordered both defendants to pay CNY 27,759 within ten days of the judgment, plus double the interest for any delayed payment.

This case illustrates how courts enforce payment obligations when a supplier provides written proof of debt. The ruling emphasizes that both companies and their legal representatives may be held personally liable if they sign a debt instrument. For suppliers, maintaining clear written records of outstanding amounts and signatures can strengthen their legal position. The judgment also shows that a defendant’s failure to appear does not prevent the court from issuing a binding decision based on available evidence.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.