Treat the difficulties of the enterprise as family matters

2023-06-14

A pump factory has a broken liquidity chain, deteriorating operating conditions, and failed to collect payment for several years. Is there any hope of survival for this small and micro enterprise that has encountered financial difficulties? Recently, the People's Court of Xinzhou District, Wuhan City, Hubei Province insisted on "treating the difficult affairs of the enterprise as family matters" and helped this small and micro enterprise come back to life. In 2009, a pump factory in Wuhan signed a water conservancy equipment supply contract with a pump station renovation project department in Xinzhou District. After the equipment acceptance, the project department made a partial payment according to the agreement, leaving over 600000 yuan in unpaid payment. The pump factory is a small and micro enterprise specializing in the production of water pump valves and other products, with a long production cycle and slow return of sales funds. The person in charge of the pump factory has attempted to alleviate the difficulty of capital turnover through pledged loans, but due to the large initial investment and limited market demand, credit institutions generally do not have a good market outlook for the enterprise, making loan financing very difficult and several times on the brink of bankruptcy. Helplessly, the pump factory could only put its hope in the payment of the goods. But at this time, the pump station project department was dissolved due to the completion of the project, and the unpaid payment of over 600000 yuan was nowhere to be recovered. The pump factory had no choice but to appeal to the court. Considering the urgent need for fund turnover in small and micro enterprises, the Xinzhou District Court immediately introduced this case into the "green channel" of enterprise related cases, achieving rapid establishment, adjustment, and follow-up. After verification, after the completion of the renovation project involved in the case, the pump station has been separated from the original "certain pump station in Xinzhou District" into two legal entities: "one pump station" and "two pump stations". The identity of the litigation subject has been lost, and the plaintiff is in a dilemma of being unable to determine the litigation subject. In the situation where the qualification of the defendant's litigation subject is still unclear, the Xinzhou District Court took the initiative to explain the situation to the pump factory in accordance with the law, guide the pump factory to change the litigation subject, and actively communicate with the responsible unit to vigorously promote a settlement. After multiple rounds of communication, both parties have successfully reached an agreement to pay the goods in full within a short period of time, and have conducted judicial confirmation in accordance with the law. In less than a month, the plaintiff pump factory received the effective judgment document. After the case is closed, the court will conduct timely follow-up visits to ensure that the funds are sufficient and in place in a timely manner. Soon, the two pump stations paid off the goods. Relying on this timely withdrawal of funds, the pump factory has successfully revived and is currently in good production and operation condition. The successful resolution of this case is a microcosm of the overall situation and proactive performance of the Xinzhou District Court Service Center. Since this year, the Xinzhou District Court has taken the initiative to further deepen the pre litigation mediation, actively build a bridge between business entities, prudently apply judicial enforcement measures such as preservation and seizure, minimize the negative impact of judicial activities on the production and operation of enterprises, and let enterprises "go into battle light". On the other hand, by opening up a "green channel" for enterprises and carrying out "hard measures" such as convenient judicial confirmation, business entities are forced to cultivate a sense of rule of law, contract spirit, and compliance, ensure market transaction safety, timely help vulnerable parties fix their winning rights, and maintain market transaction order. We will continue to promote the implementation of measures related to 'stabilizing enterprises and ensuring business safety', strive to create a stable, fair, transparent, and predictable legal business environment, and serve as the main business entity

Edit:Ying Ying    Responsible editor:Shen Chen

Source:rmfyb.chinacourt.org

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