Civil Procedure Law – Procedure for Public Notice for Claims

(The following clauses are selected from The Civil Procedure Law of the People's Republic of China authored by Robert Zhang and Steve Li, international arbitration lawyers registered in Shanghai, China.)

Article 225 Where an instrument that is transferrable by endorsement is stolen, lost, or destroyed, the holder of the instrument may file a petition with the lowest people's court in the jurisdiction where the instrument is to be paid for publication of a public notice for claims. The provisions of this Chapter XVIII shall apply to other issues for which a petition for publication of a public notice for claims may be filed.

The petitioner shall submit a petition to the people's court, stating the nominal amount of the instrument, the drawer, the holder, the endorser, and other necessary information, and the grounds and facts on which the petition is based.

Article 226 When a people's court decides to accept a petition for publication of a public notice for claims, it shall promptly notify the payer to suspend payment, and publish a public notice within 3 days for the interested parties to declare their claims. The period of public notice for claims shall be decided at the discretion of the people's court; provided, however, that it shall not be less than 60 days.

Article 227 Upon receipt of a notice from the people's court to suspend payment, the payer shall suspend payment until the termination of the procedure for public notice for claims.

During the period of public notice for claims, any transfer of the rights in the instrument shall be null and void.

Article 228 An interested party shall declare his claim to the people's court during the period of public notice for claims.

Upon receipt of a declaration from an interested party, the people's court shall make an order to terminate the procedure for public notice for claims and notify the petitioner and the payer of the same.

The petitioner or the declarer may file a lawsuit with a people's court of competent jurisdiction.

Article 229 In the absence of a declaration, the people's court shall make a decree to declare the instrument invalid as requested by the petitioner. The decree shall be published and the payer shall be notified of the decree. From the date of publication of the decree, the petitioner shall be entitled to request payment from the payer.

Article 230 Where an interested party fails to declare his claim to the people's court before the making of the decree for good cause, he may file a lawsuit with the people's court that made the decree within 1 year from the date when he knew or ought to have known of the publication of the decree.