Court Orders Payment of CNY 57,560 in Shoe Materials Dispute
A court in Eastern China City has ruled in favor of a sole proprietor who supplied shoe materials to a local footwear company, ordering the defendant to pay outstanding debt of CNY 57,560. The plaintiff, Mr. Wu, a supplier of shoe materials, brought the case after the defendant company failed to settle invoices despite multiple promises. The court found the debt clearly documented and issued a judgment in default after the defendant failed to appear at trial.
The plaintiff, Mr. Wu, operated a shoe material business and began supplying goods to Eastern China City Bao Shoes Co., Ltd. in early 2011. According to the claim, Mr. Wu delivered shoe materials as requested by the defendant, who issued internal receipt documents and a settlement statement acknowledging the amount due. When Mr. Wu sought payment, the company repeatedly cited cash flow difficulties. In September 2011, the company’s legal representative, Mr. Huang, left the country without settling any debts. Mr. Wu then learned that the defendant’s factory premises had been mortgaged to a bank, raising concerns about recovery of the money owed.
During the court hearing held on February 10, 2012, Mr. Wu appeared with his authorized representative, Mr. Zeng. The evidence presented included: Mr. Wu’s identity documents to establish his standing, a company registration certificate and organization code certificate for the defendant, and most critically, a settlement statement dated July 29, 2011 showing a balance of CNY 57,560. The defendant was properly summoned by the court but did not attend the hearing without justification. As a result, the court proceeded with a default judgment, treating the defendant as having waived its right to contest or cross-examine evidence. The court reviewed the documents and found them authentic, lawful, and relevant to the case.
The court established that a valid sales contract existed between Mr. Wu and the defendant company. Evidence showed that on July 29, 2011, the parties reconciled accounts and the defendant issued a settlement statement confirming the debt of CNY 57,560. No payment had been made by the time of the lawsuit. The court held that the facts were clear and the evidence was conclusive. Relying on the law, the court ordered the defendant to pay the full amount of CNY 57,560 within three days of the judgment taking effect. Additionally, if payment was delayed beyond that period, the defendant would be liable for double the interest on the overdue sum as per the applicable procedural rules.
The legal basis for the decision was Article 159 and Article 161 of the Contract Law of the People’s Republic of China, which require a buyer to pay the agreed price for goods and to make that payment at the agreed time. Since the defendant had acknowledged the debt in writing and failed to pay, the court concluded that the plaintiff’s claim was well-founded. The court also cited Article 130 of the Civil Procedure Law, which allows for judgment by default when a defendant fails to appear without proper cause. The court further ordered the defendant to bear the litigation costs of CNY 1,239, which had been prepaid by the plaintiff.
This case highlights the importance of maintaining clear written records in commercial transactions, particularly settlement statements signed or acknowledged by the debtor. The judgment demonstrates that courts will enforce payment obligations when documentary evidence is solid, even if the defendant avoids participation. For suppliers, the ruling underscores the value of obtaining formal acknowledgments of debt, as such documents are key to successful recovery. The case also serves as a reminder that business owners who flee their obligations still face legal accountability, and creditors may still obtain enforceable judgments.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.