Comment On The Case Of Xinli Company V.Petro Hunan Branch Company’s Dispute In China Over Contract For Assignment Of Creditor’s Rights

The mainstream view is that the provisions of assignment of creditor’s rights in China tend to protect the interests of the debtor.Some scholars even think that there is too much protection for the debtor.However,after this study,it is found that China’s law still does not protect the interests of the debtor in place,for the so-called creditor’s rights circulation value harmed the debtor’s benefit.As for the determination of the validity of assignment of creditor’s rights,China’s judicial practice mainly focuses on the review of the effectiveness of the creditor’s right transfer contract,but does not focus on the review of the effectiveness of the creditor’s right transfer contract to the debtor.There is a situation that the review of the effectiveness of the creditor’s right transfer contract is not placed in the same position as the review of the effectiveness of the creditor’s right transfer to the debtor,that is,there is a tendency to pay attention to the protection of the interests of the creditor and ignore the protection of the interests of the debtor.The reason for this tendency is that China’s law does not have a clear and specific debtor protection mechanism,and judicial practice does not pay attention to it.In this case,the debtor’s interest in the underlying legal relationship is easily covered by the legal relationship of assignment of creditor’s rights.Although the law provides that the debtor’s right of defense based on the basic legal relationship can be exercised against the creditor,it can not fundamentally change the fact that the debtor’s interests have been infringed.Compared with the original contract law of the People’s Republic of China,the Civil Code of the People’s Republic of China is more inclined to protect the interests of the assignee of the creditor’s rights in order to further protect the circulation value of the creditor’s rights.The legal status of creditors and debtors is equal,so the law should provide equal protection.Therefore,it is suggested that the Supreme People’s Court should make a more specific judicial interpretation on the validity of assignment of creditor’s rights,the validity of assignment of creditor’s rights to creditor(the validity of contract of assignment of creditor’s rights)and the validity of assignment of creditor’s rights to debtor are separately stipulated.Because of the diversity and complexity of the basic legal relationship in the assignment of creditor’s rights,it is necessary to make clear the principle provisions for the assignment of creditor’s rights to be effective for the debtor,and also to make specific provisions for the common types of invalidity.Only the law or the judicial interpretation has the clear stipulation,in the judicial practice to the debtor’s benefit protection can implement.If the interests of the debtor are protected,the assignee of the creditor’s rights will be more secure,which in turn will promote the realization of the circulation value of the creditor’s rights.