Civil Procedure Law – Demand Procedure

Article 221 An obligee who claims payment of any money or negotiable securities by the obligor may file a petition with the lowest people's court of competent jurisdiction for a payment order if:

(1) there is no other debt dispute between the obligee and the obligor; and

(2) the payment order may be served on the obligor.

A petition for a payment order shall state the amount of money or negotiable securities claimed and the facts and evidence on which the claim is based.

Article 222 After an obligee files a petition for a payment order, the people's court shall notify the obligee whether the petition has been accepted within 5 days.

Article 223 After accepting a petition for a payment order, the people's court shall review the facts alleged and evidence provided by the obligee, and shall issue a payment order to the obligor within 15 days from the date of acceptance if it holds that the claim is legal and beyond any dispute or make an order to dismiss the petition if it holds that the petition is unfounded.

The obligor shall pay off the debt or file a written challenge with the people's court within 15 days from the date of receipt of the payment order.

Where the obligor has neither challenged nor complied with the payment order within the time period specified in the preceding paragraph, the obligee may file a petition for enforcement with the people's court.

Article 224 Upon receipt of a written challenge filed by the obligor, the people's court shall review the challenge and make an order to terminate the demand procedure if it holds that the challenge is founded, in which case the payment order shall be automatically invalidated.

After a payment order is invalidated, a lawsuit may be filed unless the petitioner of the payment order does not agree to file a lawsuit.