Provisions of the Supreme People’s Court on Several Issues Concerning Cases of Property Preservation Handled by People’s Courts (‘Provisions’) will be taken into force on 1st Dec. 2016

In these years, in order to solve the problems related to those people legally in debt, the people’s courts have taken many measures, such as the public disclosure system, the order on the restriction of high consumption, and so on. Recently, the Supreme People’s Court has released the ‘Provisions’, in which the procedures and methods in handling the property preservation cases are further regulated. We recommend enterprises to pay attention to the new articles on the relevant duration of property preservation procedures, and the inquiry method on the property information of the person against whom preservation is adopted.

The relevant duration of property preservation procedures

The ‘Civil Procedure Law’ has only stipulated in Article 101 on the duration of the property preservation procedures, which says for any emergency, a people’s court shall make a ruling on the property preservation within 48 hours. Despite this requirement, the ‘Provisions’ has further prescribed as follows:

(1)For non-emergency situation and the follow-up enforcement

Article 4 states, where a people’s court accepts an application for property preservation, it shall make a ruling within 5 days; if a guarantee needs to be provided, it shall make a ruling within 5 days upon provision of the guarantee; if it rules to adopt preservation measures, such measures shall be implemented within 5 days.

(2)To renew the duration of property preservation

Article 18 states, if the preservation applicant intends to renew the duration of property preservation, it shall apply for the renewal 7 days before the expiry date of the duration of property preservation.

(3)To transfer the preserved property

Article 21 states, the preserved property which is subject to the dormant seizure, shall be transferred to the people’s court which ruling rendered regarding the dormant seizure within 1 year in principle.

(4)To remove the property preservation

Article 23 states, if the preservation applicant applies to remove the property preservation, the people’s court shall make a ruling within 5 days, and for emergency, the ruling shall be made within 48 hours.

Article 27 states, while a people’s court supports an outsider’s objection, and the preservation applicant fails to bring a lawsuit against such objection within the required duration, then the people’s court shall remove the property preservation within 7 days upon the expiry date of the previous duration.

(5)The objection of the relevant parties

Article 25 states, a party to the case refuses to accept the ruling rendered regarding the property preservation, or the application is rejected by the ruling, the party could file an application for reconsideration to the people’s court once within 5 days upon receiving the ruling. The people’s court shall review the application for reconsideration within 10 days upon receiving the ruling.

(6)The objection of the outsider

Article 27 states, while a people’s court applies the property preservation upon the property other than the dispute subject, and an outsider has made an objection, the people’s court shall make a ruling according to the relevant laws. If the outsider, or the preservation applicant refuses to accept the ruling, it could file a lawsuit against the ruling within 15 days upon receiving the ruling.

To provide new measure for the preservation applicant who could not provide the property information of the person against whom preservation is adopted.

Article 11 states, the preservation applicant could apply in written to the enforcement people’s court which has the network enforcement inquiry and control system, and require the people’s court to check the property information of the person against whom preservation is adopted in the system. In other words, if the people’s court has the network enforcement inquiry and control system, with the information of the person against whom preservation is adopted provided by the preservation applicant, the people’s court could investigate the relevant property of the person against whom preservation is adopted, and provide such information to the preservation applicant.