State compensation

Fushun Zhengyu Hydraulic Machinery Co., Ltd. v. Fushun Economic Development Zone Management Committee and others confirmed the illegality of the state-owned land construction use rights transfer contract, terminated it and compensated for the first-instance administrative judgment

Fushun Intermediate People's Court

administrative judgment

(2016) Liao 04 Xingchu No. 79

The plaintiff, Fushun Zhengyu Hydraulic Machinery Co., Ltd., is domiciled in Fushun Economic Development Zone.

Legal representative Wang Wenyan, chairman of the company.

The authorized agent is Dong Guonv, a lawyer at Beijing Yingting Law Firm.

The authorized agent is Lu Yongqiang, a lawyer at Beijing Yingting Law Firm.

The defendant, Fushun Economic Development Zone Management Committee, is domiciled in Fushun Economic Development Zone.

Legal representative Tian Tian, director.

The authorized agent is Liu Ming, legal counsel of the development zone.

The entrusted agent is Xu Xin, deputy director of the Land and Resources Bureau of the Development Zone.

The defendant, Fushun City Land and Resources Bureau, is domiciled in Fushun City.

Legal representative Yang Bo, director.

The authorized agent is Cui Xuewen, a lawyer at Liaoning Minwei Law Firm.

The entrusted agent is Zhu Dejun, a staff member of the bureau.

The plaintiff Fushun Zhengyu Hydraulic Machinery Co., Ltd. sued the defendants Fushun Economic Development Zone Management Committee and Fushun Municipal Bureau of Land and Resources for confirming that the state-owned land construction use rights transfer contract was illegal, rescinding and compensating for compensation. After accepting the case, this court formed a collegial panel in accordance with the law and held public hearings on the case on March 7, 2017, January 24, 2018, and June 11, 2018. The legal representative of the plaintiff Fushun Zhengyu Hydraulic Machinery Co., Ltd. Wang Wenyan and his authorized agents Dong Guonv and Lu Yongqiang, the defendant Fushun Economic Development Zone Management Committee’s authorized agents Liu Ming and Xu Xin, and the defendant Fushun Municipal Land and Resources Bureau’s authorized agents Cui Xuewen and Zhu Dejun attended the court to participate in the lawsuit. The trial of this case has now been concluded.

The plaintiff claimed that on November 2, 2012, the plaintiff signed a "State-owned Construction Land Use Rights Transfer Contract" with the Fushun Economic Development Zone Branch of the Fushun Municipal Land and Resources Bureau, an internal agency of the Fushun Economic Development Zone Management Committee. The two parties agreed that the plaintiff purchased a state-owned land use right in the Fushun Economic Development Zone for a transfer fee of 6.28 million yuan. The transferor was the Fushun Municipal Land and Resources Bureau. The land was industrial land with a use period of 50 years. The land delivery date was November 2, 2012. On November 16, 2012, the plaintiff paid the entire land transfer fee of 6.28 million yuan to the defendant, but the defendant has not yet been able to deliver the land. After repeated urging by the plaintiff, it still failed to deliver the land, causing losses to the plaintiff. The defendant's failure to perform the contract was illegal. According to the law, the defendant should return the land transfer fee and compensate for losses. Now the plaintiff is suing, requesting an order that the defendant fails to perform the "State-owned Construction Land Use Rights Transfer Contract" signed by the plaintiff and the internal organization of the Fushun Economic Development Zone Management Committee in accordance with the law, which is illegal, and the contract is terminated; it requests an order that the defendant return the land transfer fee paid by the plaintiff6 280,000 yuan, and pay interest of 1.26542 million yuan; request an order to order the defendant to pay liquidated damages of 5.966 million yuan as of June 11, 2015; request an order to order the defendant to pay an additional 2,400 yuan in liquidated damages; the litigation costs shall be borne by the defendant.

To prove its claim, the plaintiff submitted the following evidence to this court:

1. "Listing Transaction Confirmation Letter" to prove the fact that the defendant transferred the land;

2. "State-owned Construction Land Use Rights Transfer Contract", proving the fact of the transfer, and agreeing on the delivery time and liquidated damages;

3. The letter proving the payment of the land transfer fee and the deed tax payment document prove that the plaintiff has fulfilled its contractual obligations;

4. The reminder letter and mailing receipt urging the defendant to perform its contractual obligations prove that the plaintiff has repeatedly urged the management committee and the Land and Resources Bureau to deliver the land;

5. The management regulations of the Liaoning Provincial Economic and Technological Development Zone prove that the Land and Resources Bureau is an institution established by the Management Committee and does not have the ability to independently bear legal responsibilities;

6. A screenshot of the official website of the Management Committee, proving that the Land and Resources Branch is an internal organization of the Management Committee;

7. Proof of loss, proving that the plaintiff lost 6.28 million yuan in transfer fees, 1.5072 million yuan in interest, 254,340 yuan in land deed taxes, stamp taxes, and early construction investment (including: 25,000 yuan in early construction costs, 1,755 yuan in drawing review fees, 8,157 yuan in piling freight, 10,000 yuan in supervision fees, 27,000 yuan in exploration fees, and 3.3 million yuan in fence construction. 40,000 yuan, 806,000 yuan in salary for infrastructure construction preparatory team, 150,080 yuan in backfill payment, 170,000 yuan in construction of equipment warehouse, 653,200 yuan in land value increase or replacement price difference, 20 million yuan in expected losses, 1.5 million yuan paid in the new factory lease contract, 1.601,700 yuan in liquidated damages for commissioning of production, 1.601,700 yuan in equipment losses, 990,808 yuan in land use tax, and 400,000 yuan in lawyer fees);

8. Fukai Jingbei (2013) No. 18 "Confirmation Letter of Enterprise Investment Projects in Fushun City, Liaoning Province", "Registration Application Form for Enterprise Investment Projects in Fushun City, Liaoning Province", and "Site Selection Opinion Letter" from Fushun Municipal Planning Bureau Development Zone Branch prove that the plaintiff has been going through various procedures for the project construction, but was forced to terminate the process because the government could not hand over the land and could not continue according to law. The expected annual profit was 15.32 million yuan, and compensation should be paid according to law;

9. The statement issued by the Shenfu New City Land and Housing Acquisition Bureau and other departments that the land cannot be delivered proves that the defendant has not been able to deliver the land due to demolition of supporting infrastructure and other reasons;

10. The Economic Development Bureau's "Notice on Allocating Support Funds for Hydraulic Cylinder Production Line Construction Projects" proves that the 4.67 million yuan paid by the Fushun Economic Development Zone Economic Development Bureau to the plaintiff was a special fund for the development of leading industries.

The Fushun Economic Development Zone Management Committee argued that the signing procedure of the "State-owned Construction Land Use Rights Transfer Contract" was legal, the content complied with the provisions of laws and regulations, the plaintiff's intention was true and had been actually performed, and it was legal and valid. According to the detailed land use control plan and after completing the approval procedures, the Fushun Economic Development Zone Branch of the Fushun Municipal Land and Resources Bureau published the 2012 10th phase of the state-owned construction land use rights transfer announcement in the Fushun Daily on September 29, 2012, including the land parcel. The plaintiff delisted and signed the "State-owned Construction Land Use Rights Transfer Contract" on November 2, 2012. The contract's contents regarding land development, construction and utilization, transfer and mortgage of use rights, time limit, etc. are in compliance with laws and regulations and the content is legal. If the plaintiff's intention is true and the contract is actually performed, the People's Court shall determine that the contract is legal and valid. The plaintiff submitted a bid, provided all bidding procedures, fulfilled its bidding obligations, obtained transaction confirmation, and signed the contract. At the same time, the land department delivered the plot of land specified in the contract to the plaintiff. This contract is the specific implementation of the "Project Contract" and "Supplementary Agreement" signed by both parties in September 2012. Due to planning adjustments, the land used by enterprises in the original small business park needs to be expropriated. On September 22, 2012, the defendant and the plaintiff signed an "Agreement". The defendant compensated the plaintiff for the expropriation of 20 acres of land used by the original enterprise. At the same time, the defendant signed a "Project Contract" and "Supplement" with the plaintiff as a newly introduced enterprise. Agreement", the plaintiff is allowed to enjoy the investment promotion policy. The actual transfer fee for 20 acres of land is 37,000 yuan/mu, and the actual transfer fee for the remaining 12.66 acres is 100,000 yuan/mu. This is performed in the form of subsidy funds to the plaintiff. The plaintiff actually paid 2.006 million yuan for the land transfer fee under the contract. If the plaintiff proposes to terminate the contract, he shall bear liability for breach of contract or the parties shall reach a consensus through negotiation. Now that the plaintiff proposes to determine that the contract is illegal and requests to terminate the contract, the people's court should hold the plaintiff responsible for breach of contract or promote the parties to resolve their disputes through consultation.

To prove its claim, the defendant submitted the following evidence to this court:

1. Land planning, approval, and transfer materials prove that the land transfer procedure is legal, the plaintiff’s true expression of intention when signing the contract, and the content of the contract complies with legal provisions;

2. Topographic map, proving that the land delivered meets the conditions for delivery and that the plaintiff failed to perform its contractual obligations;

3. The agreement proves that the transfer contract stems from the compensation for the expropriation of the land originally used by the plaintiff, and that the compensation has been actually completed;

4. The project contract and supplementary agreement prove that the plaintiff will be given preferential policies for newly introduced enterprises, and the rights and obligations of both parties are stipulated. The transfer contract is the specific performance of the contract;

5. Payment accounting voucher, proving that the plaintiff paid the price stipulated in the land transfer contract; 6. Refund accounting voucher, proving that the management committee returned the preferential policy subsidy given to the plaintiff for the land price. The actual land transfer fee paid by the plaintiff was 2.006 million yuan.

Fushun Municipal Land and Resources Bureau responded that it should not be named as a defendant in this case. The plaintiff signed a "State-owned Construction Land Use Rights Transfer Contract" with the Fushun Economic Development Zone Branch of the Fushun Municipal Bureau of Land and Resources on November 2, 2012. Although the transferor of the above-mentioned contract is stated as the defendant, the last transferor of the contract signed and sealed it as the Fushun Economic Development Zone Branch of the Fushun Municipal Land and Resources Bureau, and the actual performer of the contract was also the Fushun Economic Development Zone Branch of the Fushun Municipal Land and Resources Bureau. The plaintiff's claim was wrong.

After review, this court determined that evidence Nos. 1, 2, 3, 4, 5, 6, 9, and 10 provided by the plaintiff are true and valid and should be accepted in accordance with the law. As for evidence No. 7 and 8 submitted by the plaintiff, this court will not accept it because it cannot prove the plaintiff's actual losses and expected profits. The legality, authenticity and relevance of Evidence Nos. 1, 3, 4 and 5 provided by the defendant shall be accepted in accordance with the law; the purpose of proving Evidence Nos. 2 and 6 shall not be accepted.

After trial, it was found that the plaintiff Fushun Zhengyu Hydraulic Machinery Co., Ltd. was registered and established on January 25, 2007. Its business scope: manufacturing (preparation) and sales of hydraulic machinery and accessories, mining machinery and accessories, and sales of metal structural parts.

On September 28, 2010, the Fushun Economic Development Zone Land Acquisition and Relocation Headquarters, as Party A, signed an "Agreement" with Party B's Zhengyu Company, stipulating that "according to the needs of urban planning, Party A needs to expropriate a piece of land of approximately 20 acres owned by Party B in the Fushun Economic Development Zone. After negotiation between Party A and Party B, based on the principles of equality, voluntariness, and compensation, the following agreement was reached: 1. Party A entrusts an appraisal intermediary unit to evaluate and price Party B's above-ground attachments, and compensate Party B based on the estimated price amount and the considerable actual expenses incurred by Party B. 2. As determined by both parties, the total compensation price for Party B's land use rights expropriation compensation, compensation for above-ground attachments, supporting facilities, and losses due to business suspension is RMB 13.59 million..." The agreement was actually implemented, the land was expropriated, and the compensation was paid to the plaintiff. In 2012, in order to solve the problem of project land use after Zhengyu Company's land was expropriated, the Fushun Economic Development Zone Management Committee, as Party A, signed a "Project Contract" (Contract No.: 2012-033) and a "Supplementary Agreement" with Zhengyu Company, Party B.

The "Project Contract" states "1. Project Overview: The construction content is the production of various types of engineering machinery and mining machinery hydraulic cylinders; the total project investment is 200 million yuan; the project is located in the Fushun National Advanced Equipment High-tech Industrialization Base in Shenfu New City; after the project is put into operation, it is planned to produce 1,500 sets per year, with an output value of 200 million yuan, and realized tax revenue of 13 million yuan... 2. Land transfer: Party A agrees to transfer about 32 acres of land located in the Danan Industrial Zone, Liaoning (Fushun) Advanced Equipment Manufacturing Base, Fushun Economic Development Zone, to Party B as reserved land for project construction. After Party A lists the land, Party B needs to finalize it through delisting. Obtain land use rights. The final land area of the project shall be subject to the signed land use rights transfer contract after the project construction planning evaluation and demonstration (the project construction planning evaluation and demonstration shall be jointly organized by Party A and Party B); the land transfer price shall be subject to the final land delisting price; the land use right transfer period shall be 50 years; payment method : One-time payment after the land is listed and delisted... 4. Park construction conditions: Party A is responsible for the use of land for infrastructure construction to ensure that the land has seven connections, namely roads, water supplies, drainage, sewage, electricity, and communications;... 6. Liability for breach of contract 1. Party A has the right to terminate this contract under the following circumstances (1) Party B's project does not comply with the provisions of the land transfer contract. The specified construction time limit is completed, and the project construction has not been completed within the extension application period (if Party B's project is delayed due to Party A's reasons, this provision does not apply); (2) Party B's project construction does not meet the project standards stipulated in this contract, and Party A takes back the excess land in accordance with the law. Party B refuses to hand over the land; (3) Party B's project If the construction fails to meet the project standards stipulated in this contract and fails to meet the national standards after Party B's rectifications, if Party A terminates this contract, Party A will take back the land in accordance with the law, and Party A will refund the land transfer fee paid by Party B for the project. The demolition will be completed by itself within 0 days. If it is overdue, Party A will entrust a third party to dismantle it, and the proceeds from the auction will be returned to Party B. Party B will be responsible for the difference in price. 2. Party A fails to provide Party B with land, policies and services in accordance with the provisions of this contract, and Party A and Party B will be responsible for the losses caused to Party B's project. Party A entrusts a professional appraisal agency to evaluate. 3. If Party A and Party B fail to complete or start construction on the reserved development land during the contract period, and cannot start construction within the time limit, Party A will take back the land according to the actual transfer price, and Party B will dismantle the buildings and other attachments on the ground (including machinery and equipment) by itself, and Party B will be responsible for any losses..."

The "Supplementary Agreement" stipulates that "... 2. Party B shall strictly implement the "Agreement" signed with the Fushun Economic Development Zone Land Acquisition Office, otherwise the preferential policies in Article 4 of this Agreement will be cancelled. 3 Construction period: Party B shall start construction (piling) before October 25, 2012, and complete the infrastructure before the end of the year. The construction period is one year. 4. Land transfer: If Party B's project construction content and construction time limit are in accordance with the "Project Contract" and this "Supplementary Agreement" If the agreement is completed, the project land will be 20 acres, and Party B will be given a subsidy of 232 yuan per square meter based on the land area (the actual land transfer price is 37,000 yuan/mu). The remaining part will be given to Party B at a subsidy of 138 yuan per square meter based on the land area (the actual land transfer price is 100,000 yuan/mu). 5. Taxation target: The total tax revenue of Party B in the first year of production will not be less than 100 yuan/square meter (based on the land area). Standard, a land transfer fee of 20,000 yuan per mu shall be paid; ... 7. Party B shall complete the enterprise registration and graphic design of the project within 45 days of signing the "Project Contract", and obtain approval from the planning department. 8. If Party B's project does not start construction (piling) as specified in Article 3 of this Supplementary Agreement or is not completed as stipulated in Article 7, the "Project Contract" and this "Supplementary Agreement" will automatically terminate, and Party A has the right to take back the transferred land without compensation. , the preliminary construction costs and other expenses of the project, and all losses shall be borne by Party B; if Party B fails to complete the project construction in accordance with Article 3 of this Supplementary Agreement, the actual transfer price of the project land will be 192,000 yuan /mu or pay the land transfer fee to 192,000 yuan/mu. …10. For the land that Party B’s project has not started or has not been completed, Party B will pay the land transfer fee to 192,000 yuan/mu, or Party A will take it back without compensation..." According to the "Preliminary Opinions on the Tenth Batch of Plots to Be Listed in 2012" issued by the Economic Development Bureau of Fushun Economic Development Zone on September 27, 2012, Fukai Jingdi Han (2012) No. 51, the Fushun Economic Development Zone Branch of the Fushun Municipal Planning Bureau "On the Transfer of the Twentieth Batch of Plots to be Listed in 2012" "Letter" and the "Preliminary Opinions" of the Economic Development Zone Branch of the Fushun Municipal Environmental Protection Bureau on September 28, 2012. The Fushun Economic Development Zone Branch of the Fushun Municipal Land and Resources Bureau published the 2012 10th issue of the transfer of state-owned construction land use rights in Fushun Daily on September 29, 2012.

On October 18, 2012, Zhengyu Company submitted a "Bidding Application" to the Fushun Economic Development Zone Branch of the Fushun Municipal Land and Resources Bureau to "participate in the bidding for the transfer of the state-owned construction land use rights for the plot numbered 2012-10-06#B1#-g (Special Equipment Manufacturing)." On October 19, Zhengyu Company submitted a bidding quotation for the listed land with a starting price of 6.28 million yuan for the above-mentioned land parcel. On October 30, Zhengyu Company paid a bidding deposit of 3.2 million yuan, and the Finance Bureau of the Development Zone issued a special receipt for the payment. On November 2, 2012, the Fushun Economic Development Zone Branch of the Fushun Municipal Bureau of Land and Resources signed the Fu Kaicheng [2012] No. 76 listing transaction confirmation letter with Zhengyu Company. On the same day, the two parties signed contract number 2113052012ak076 "State-owned Construction Land Use Rights Transfer Contract." The land parcel number assigned under this contract is 2012-10-6, with a total area of 21,776 square meters, and is used for industrial land. Article 6 of the contract "The grantor agrees to deliver the parcel of land to the grantee before November 2, 2012. The grantor agrees that when delivering the land, the land parcel shall meet the land conditions specified in item (2) of this article:... (2) Current land conditions", Article 16 "The grantee agrees It is intended that the land construction project under this contract will be started before April 30, 2013, and completed before April 29, 2015. If the transferee cannot start the construction as scheduled, it should submit an extension application to the transferor 30 days in advance. If the transferor agrees to the extension, the project completion time will be postponed accordingly, but the extension period shall not exceed one year." Chapter 6 of the contract stipulates a force majeure clause, and Chapter 7 stipulates liability for breach of contract. Among them, “Article 37 If the transferee pays the transfer price of the state-owned construction land use rights as stipulated in this contract, the transferor must deliver the transferred land on time in accordance with the provisions of this contract. Because the transferor failed to provide the transferred land on time, the transferee’s contract If the possession of the parcel under the same item is extended, the transferor shall pay liquidated damages to the transferee at the rate of 1‰ of the transfer price of the state-owned construction land use right paid by the transferee for each day of extension. The land use period shall be calculated from the date of actual delivery of the land to the transferor. If the land delivery date exceeds 60 days and the land cannot be delivered despite being urged by the transferee, the transferee shall have the right to terminate the contract, and the transferor shall return double the deposit and return the remainder of the price paid for the transfer of the right to use state-owned construction land to the transferee. And can request the transferor to compensate for losses." After the contract was signed, Zhengyu Company paid the remaining contract price of 3.08 million yuan in addition to the bidding deposit, and Zhengyu Company has paid a total of 6.28 million yuan in land transfer fees.

On September 11, 2014, the Economic Development Bureau of Fushun Economic Development Zone issued Fukai Jingfa [2014] No. 115 document "Notice on Allocating Support Funds for Hydraulic Cylinder Production Line Construction Projects", which reads, "Fushun Zhengyu Hydraulic Machinery Co., Ltd.: Your unit is constructing a 'hydraulic cylinder production line construction project'. After review, this project is an industry encouraged by the state and is in line with the promotion and leadership of Shenfu New City Interim Measures for Industrial Development Support Funds. In view of the fact that the project is at a critical stage of construction, in order to promote the project to be completed and put into operation as soon as possible, after research and department review, it was agreed to provide special financial support for the project. The district financial department will arrange a special fund of 4.67 million yuan for the development of leading industries for investment in project infrastructure, equipment, etc. Please handle relevant procedures accordingly and actively promote project construction." On March 17, 2015, the Fushun Economic Development Zone Economic Development Bureau transferred 4.67 million yuan to the plaintiff by check transfer. The reason was special funds for the development of leading industries. The plaintiff issued a receipt on the same day. During the trial of this case, on March 8, 2017, Fushun Shenfu New City Land and Housing Expropriation Bureau issued New City Expropriation Certificate (2017) No. 1 Statement to the plaintiff, which read: Fushun Zhengyu Hydraulic Machinery Co., Ltd. obtained the land use rights of 21,776 square meters in the Fushun Economic Development Zone with parcel number 2012-10-06 on November 2, 2012. Due to reasons such as demolition and supporting infrastructure, the delivery conditions had not been met as of March 2017.

It was also found that the disputed plot of land was expropriated as state-owned construction land approved by the Liaoning Provincial People's Government in the Liaoning Provincial People's Government's land approval document No. [2010] No. 1005 on November 15, 2010 and Liao Zhengdizi [2011] No. 1402 on September 16, 2011. After paying the land transfer fee, the plaintiff paid a state-owned land use right transfer deed tax of 254,340 yuan to the Fushun Municipal Local Taxation Bureau Economic Development Zone Branch on November 8, 2012.

It was further found out that according to the provisions of Fuweifa [2009] No. 12 and [2013] No. 8, the Development Zone Management Committee has first-level land development functions and municipal-level land reserve transaction authority.

On March 11, 2018, the plaintiff submitted an application to this court, requesting an evaluation of the project cost of the construction project that had been completed on the land involved. Entrusted by this court, the evaluation agency was selected through lottery. On May 22, 2018, Liaoning Hengxin Deloitte Engineering Cost Consulting Co., Ltd. issued a "Project Cost Appraisal Report" with the conclusion that the appraised project cost was 1,065,540 yuan.

This court held that: the content of the "State-owned Construction Land Use Rights Transfer Contract" (electronic supervision number 2104002012804038) signed by the plaintiff and the defendant complied with legal provisions, and the intentions of both parties to the contract were true, legal and valid.

In this case, since the parties to the "State-owned Construction Land Use Rights Transfer Contract" are the plaintiff and the Fushun Economic Development Zone Branch of the Fushun Municipal Bureau of Land and Resources, the Fushun Economic Development Zone Branch of the Fushun Municipal Bureau of Land and Resources has land development functions and is an internal institution of the defendant approved by the Fushun Municipal Institutional Establishment Committee. Therefore, the defendant Fushun Economic Development Zone Management Committee should bear responsibility. Although the defendant Fushun Municipal Bureau of Land and Resources is nominally the transferor of the "State-owned Construction Land Use Rights Transfer Contract", the performance and implementation of the contract are completed by the defendant Fushun Economic Development Zone Management Committee. The actual counterparty of the contract is the defendant Fushun Economic Development Zone Management Committee, and the Fushun Municipal Bureau of Land and Resources should not bear responsibility. After signing the contract, the plaintiff Zhengyu Company began to invest in the land involved, but the defendant did not deliver all the land to the plaintiff, resulting in the plaintiff being unable to start construction normally. The "Contract Law of the People's Republic of China" stipulates that if one party delays the performance of its debts or commits other breaches of contract such that the purpose of the contract cannot be achieved, the party may terminate the contract. On March 8, 2017, the Land and Housing Acquisition Bureau under the defendant issued a statement clearly stating that the land involved in the case had not yet met the delivery conditions. Therefore, this court supports the plaintiff’s request to terminate the contract. The "Contract Law of the People's Republic of China" stipulates that after the contract is terminated, if it has not been performed, the performance will be terminated; if it has been performed, the party may request restoration to the original status, take other remedial measures, and have the right to demand compensation for losses based on the performance and the nature of the contract. Since the "State-owned Construction Land Use Rights Transfer Contract" was terminated in accordance with the law, the defendant Fushun Economic Development Zone Management Committee should return the 6.28 million yuan in land transfer fees paid by the plaintiff Fushun Zhengyu Hydraulic Machinery Co., Ltd. Regarding the defendant Fushun Economic Development Zone Management Committee’s suggestion that “the contract allows the plaintiff to enjoy investment promotion policies, the amount paid by the management committee to the plaintiff in the form of subsidy funds should be deducted. The plaintiff actually paid 2.006 million yuan in land transfer fees under the contract, and the land transfer fee should be paid in accordance with the bid.” "Permitted Return" section, because the payment made by the defendant's management committee to the plaintiff on March 17, 2015 was named as special funds for the development of leading industries, the defendant failed to provide evidence to prove the connection between the payment and the land transfer fee. Therefore, this court does not accept the defendant's defense. Because the plaintiff had already begun to invest in the land after acquiring the land, and the investment was unable to be performed due to the failure of the contract, causing losses to the plaintiff, the defendant should compensate the plaintiff for the investment. Regarding the plaintiff's investment, this court commissioned an appraisal, and Liaoning Hengxin Deloitte Engineering Cost Consulting Co., Ltd. issued a "Project Cost Appraisal Report" with the conclusion that the appraised project cost was 1,065,540 yuan. Although the defendant raised objections to the appraisal conclusion, it failed to provide evidence. Although the appraisal conclusion was flawed in writing, it did not affect the purpose of the evaluation. Therefore, the defendant should compensate the plaintiff in the amount determined by the appraisal conclusion.

As for the plaintiff's request to "order the defendant to pay liquidated damages calculated at 1‰/day and compensate for loss of interest", the two parties have agreed in the "State-owned Construction Land Use Rights Transfer Contract" that the defendant should pay liquidated damages to the plaintiff as agreed. Article 29 of the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Contract Law of the People's Republic of China (II)" stipulates that if a party claims that the agreed liquidated damages are too high and requests an appropriate reduction, the People's Court shall, based on the actual losses, take into account comprehensive factors such as the performance of the contract, the degree of fault of the parties, and expected benefits, weigh it in accordance with the principles of fairness and good faith, and make a ruling. If the liquidated damages agreed upon by the parties exceed 30% of the losses caused, it can generally be deemed to be "excessively higher than the losses caused" as stipulated in Article 114, Paragraph 2 of the Contract Law. Because the liquidated damages agreed in the contract between the two parties were too high, based on the facts of this case and the plaintiff's actual losses, this court made adjustments based on the principles of fairness and good faith, and determined that the defendant Fushun Economic Development Zone Management Committee would pay interest calculated at 1.3 times the People's Bank of China's loan interest rate for the same period from November 17, 2012 to the date of actual payment. As for the plaintiff's request for an order to return the land use tax and transaction tax it paid, the plaintiff actually paid the deed tax for the land transfer after signing the state-owned land use rights transfer contract. If the contract could not be performed due to the defendant's fault, the defendant should be liable for compensation for the deed tax paid by the plaintiff. The plaintiff's request for an order to compensate the defendant for attorney's fees is unfounded in law and will not be supported by this court. In summary, based on the provisions of Article 73, Article 74, Paragraph 2, Item (3), and Article 76 of the Administrative Litigation Law of the People's Republic of China, Article 94, Paragraph 1, Item (4), and Article 97 of the Contract Law of the People's Republic of China, and Article 29 of the Interpretation (2) of the Supreme People's Court on Several Issues Concerning the Application of the Contract Law of the People's Republic of China, the judgment is as follows:

Chief Judge Wang Yu Judge Ning Bo Judge Che Chengjiao

June 12, 2018

Clerk Duan Xuefei