Provisions on Several Issues for Handling Enforcement Objection and Reconsideration Cases by People's Courts (“Provisions”) has come into force on 5th May

The Supreme People’s Court recently issued Provisions, in which it has prescribed the procedures for objection and reconsideration, in addition, it has also clarify some rules on dealing with those relevant practical disputes. The main content includes:

Procedures

To set the deadline for acceptance: in principle, enforcement objection cases shall be accepted within three days;

To avoid postponing an enforcement by keeping submitting objections for different reasons: grounds for enforcement objection shall be submitted at one time;

To provide a judicial relief approach for those who are restricted from departing China: persons restricted from departing China shall have the right to apply for review.

Practical disputes

A third party who pays the debt on behalf of a party is estopped without justified reasons;

The only housing under the name of the enforcement respondent may be subject to enforcement: it has further defined how to enforce for different categories of debt. In principle, if the value of the only housing exceeds the scope of necessary living expenses for the enforcement respondent and his or her dependent family, then such only housing may be subject to enforcement;

Judicial auction in violation of laws may be revoked;

An enforceable guaranteed debt shall be enforced;

People’s courts may not enforce against any real estate purchased by a buyer that is lawfully protected even though the ownership change has not been registered;

A tenant can only claim its leasing right if it occupies the real estate before the housing is sealed up by a people’s court.

without any justification, treat the counter parties with the same conditions differently.