Brief of the case

  Mr. Li serves as the general manager of Shunchang Company and is the legal representative of Shunchang Company. In October 2020, due to the operating difficulties of Shunchang Company and the capital turnover was not open, Mr. Li borrowed money from Ms. Lu and issued an "IOU" to Ms. Lu in his personal name, agreeing to borrow for 3 months, the repayment period is January 2021, and the interest is 2% per month. On the same day, Ms. Lu transferred three times to the public account of Shunchang Company through bank transfer, totaling 350,000 yuan. In November and December 2020, Mr. Li paid the first and second phase interest to Ms. Lu as scheduled, totaling 14,000 yuan. By January 2021, Mr. Li had not repaid the loan principal and the remaining interest to Ms. Lu. Ms. Lu repeatedly urged, Mr. Li and Shun Chang company refused to repay. In desperation, Ms. Lu sued the court, asking Mr. Li and Shunchang company to repay the loan principal of 350,000 yuan and interest.

  In the trial, Shun Chang company argued that Ms. Lu asked Shun Chang to bear the repayment responsibility has no factual and legal basis, Mr. Li is the main body of the repayment in this case, Shun Chang company should not bear any repayment responsibility.

Court hearing

  After hearing, the court held that the legal representative of a legal person or the head of an unincorporated organization concluded a private lending contract with the lender in the name of an individual, the loan is used for the production and operation of the unit, and the lender requests that the unit and the individual share the responsibility, the people's court shall support. In view of the fact that Mr. Li was the legal representative of Shunchang Company on the date ofthe loan, and the money provided by Ms. Lu was paid to the account of Shunchang Company by means of transfer, Shunchang Company shall assume the joint repayment responsibility for the corresponding loan (350,000 yuan) of Mr. Li. As for the interest on the loan, the two parties agreed on a monthly interest rate of 2% during the term, therefore, Ms. Lu asked Mr. Li to pay the interest on the overdue repayment of the above loan in accordance with the legal interest rate ceiling standard, which has a factual basis. The court finally ruled that Mr. Li and Shunchang company jointly repaid Ms. Lu's loan principal of 350,000 yuan and compensated for interest losses.

Judge's statement

  Article 22 (2) of the Provisions of the Supreme People's Court on Several Issues relating to the Application of Law in the Trial of Private lending Cases provides that: where the legal representative of a legal person or the person in charge of an unincorporated organization enters into a private lending contract with the lender in the name of an individual, the loan is used for the production and operation of the unit, and the lender requests that the unit and the individual share the responsibility, the people's court shall support it.

  In this case, although Mr. Li issued the IOU to Ms. Lu in his personal name, the corresponding amount was paid by Ms. Lu to the account of Shunchang Company by bank transfer for the production and operation of Shunchang Company, so Shunchang Company should bear the joint repayment responsibility for the loan.

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