Eastern China City Court Orders Repayment of CNY 276,492 in Loan Dispute
A court in Eastern China City has ordered two defendants to repay a total of CNY 276,492 in principal and interest arising from three separate loans made between 2007 and 2009. The plaintiffs, Ms. Zhou and Mr. Zhao and Ms. Liu, were involved in a private lending relationship. The judgment was issued after the defendants failed to appear at trial, resulting in a default ruling.
The plaintiffs, Ms. Zhou, a farmer, filed a lawsuit against Mr. Zhao and Ms. Liu, also farmers and alleged business partners. Ms. Zhou claimed that the defendants, who she said were married and jointly operated a brick kiln, borrowed money from her on three occasions. The loans were taken out on November 2, 2007 for CNY 30,000, November 7, 2008 for CNY 60,000, and January 9, 2009 for CNY 95,000. The parties agreed on monthly interest rates of 1.2 per mille for the first loan, 1.2 percent for the second, and 2 percent for the third. Ms. Zhou alleged that despite repeated demands, the defendants refused to repay the debts, which she calculated as totaling CNY 291,720 including interest.
During the court hearing, the plaintiff presented several pieces of evidence. These included her identity card, a certificate from the local village committee purporting to show that the defendants were married and operated the kiln together, and three written loan receipts signed by the defendants. The defendants were served with summons by public notice but did not attend the hearing or submit any defense. The court examined the evidence and accepted the loan receipts as authentic, valid, and relevant. However, it rejected the village committee certificate because proof of marriage must come from a marriage registration authority, and the certificate lacked the required legality and authenticity.
The court found that the defendants had borrowed a total principal of CNY 185,000 from the plaintiff, a fact supported by the three signed receipts. It calculated the interest due on each loan from the date of borrowing up to the date of the lawsuit. For the CNY 30,000 loan at 1.2 per mille per month, interest amounted to CNY 1,692. For the CNY 60,000 loan at 1.2 percent per month, interest was CNY 25,200. For the CNY 95,000 loan at 2 percent per month, interest reached CNY 64,600. The court held that the debt on the two loans signed by both defendants — totaling CNY 125,000 principal plus CNY 66,292 interest — must be repaid jointly by Mr. Zhao and Ms. Liu. The remaining loan of CNY 60,000, signed only by Mr. Zhao, was his sole responsibility, with interest of CNY 25,200.
The legal basis for the ruling rested on the principle that debts must be repaid. The court cited the General Principles of the Civil Law, which provide that lawful creditor-debtor relationships are protected by law and that debtors must perform their obligations. Because the defendants did not attend the hearing, the court applied the Civil Procedure Law to issue a default judgment. The court also noted that if the defendants failed to pay within ten days of the judgment taking effect, they would be liable for double the interest on the overdue amount during the delay period.
This case highlights the importance of clear written documentation in private lending transactions. The court relied heavily on the three loan receipts, which contained the amounts, interest rates, and signatures. At the same time, the judgment demonstrates that courts will strictly scrutinize evidence of marital status in joint debt claims. The plaintiff’s claim for joint liability on all loans was partially denied because one receipt bore only Mr. Zhao’s signature, and the community certificate was not accepted as proof of marriage. The default judgment also underscores that defendants who fail to respond to proceedings risk adverse rulings without any opportunity to present their side.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.