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Enforcement of judgment or the arbitration verdict in China

Time:2014-03-13 Hit:187


Enforcement of judgment or the arbitration verdict in China

 If one party refuses to carry out the legally effective civil judgment or ruling, the opposing litigant may apply to the People's court for its execution within two years from the last day of the period of performance prescribed by the legal document. Turning the judgment into performance of an obligation is the ultimate purpose of winning a case; however, enforcement is a well-know problem to all litigants in the People's Republic of China. A judgment makes abroad is extremely different from enforcing since china has established judicial enforcement treaties with only a few numbers of countries.

 Though the People's Court has the right to inquire banks, credit cooperatives and other organizations in the savings business about the deposits of the person concerned; to freeze or transfer his deposits; the people's court has the authority to detain or draw from his income an amount equal to his liability; to seal up, distrain, freeze, auction or sell a portion of his property equivalent to his responsibility; There are lot problems for the enforcement of the legal judgment and verdict as a result of the court's limited access to investigate property and the counter-measures of hiding property of the other party. If the legally effective verdict is rendered by an arbitration organ, the litigant may also ask for its execution at a competent People's Court unless the verdict is found that:

a) The litigants neither stipulated arbitration provisions in their contract nor reached a written agreement of arbitration afterwards; or

b) The matter being adjudicated falls neither within the limits of the agreement of arbitration nor the limits of the arbitration organ's authority; or

c) The formation of the arbitration tribunal or the arbitrating procedure violate the legal procedure; or

d) The crucial evidence is found to be insufficient; or

e) The application of the law is found to be erroneous; or

f) The arbitrator is found to have taken bribes, conducted malpractice out of personal considerations, and misused the law in rendering a verdict in the course of arbitration.

 For the credit document which is issued by the notary public for the effectiveness of forcible execution, the adverse litigant may request the competent People's Court for its execution without going through the procedural of litigation, however, the People's Court may check whether the notary document shows the truth of the facts, the court may refuse to execute it if a definite error is found in such document upon noticing the litigants and the notary public of ruling.



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