Civil Procedure Law - Preservation and Advance Enforcement

(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 103 Where a decree may become difficult to enforce or other damages may be incurred to a party due to the acts of the other party or for other reasons, the people's court may, upon the petition of the first party, make an order for preservation of the property of the other party or order the other party to perform or refrain from performing certain acts; In the absence of such a petition, the people's court may, on its own initiative, make an order for preservation of the property where necessary.

A people's court may order the petitioner to provide a security before making an order for preservation, and shall make an order to dismiss the petition if the petitioner fails to provide the security as ordered.

A people's court shall make an order within 48 hours after receiving a petition in case of an emergency; Where it makes an order for preservation, the order shall be enforced promptly.

Article 104 In case of an emergency where the lawful rights and interests of an interested party would suffer irreparable damage in the absence of a petition for an order for preservation, the interested party may file a petition with the people's court in the jurisdiction where the property to be preserved or the domicile of the party against whom the petition is filed is located or the people's court of competent jurisdiction over the case before filing a lawsuit or referring to arbitration. The petitioner shall provide a security, failing which the petition shall be dismissed.

A people's court shall make an order within 48 hours after receiving a petition; Where it makes an order for preservation, the order shall be enforced promptly.

Where the petitioner fails to file a lawsuit or a request for arbitration according to law within 30 days after the people's court has preserved the property, the people's court shall cancel the preservation measure.

Article 105 An order for preservation shall be granted to the extent of the petition or the property related to the case.

Article 106 An order for preservation of property shall be enforced by sealing up, seizing, freezing, or otherwise as specified by law. After a people's court has preserved any property, it shall promptly notify the person whose property has been preserved.

Any property that has been sealed up or frozen shall not be sealed up or frozen for a second time.

Article 107 In a property dispute case, the people's court shall make an order to cancel the preservation measure if the party against whom the petition is filed provides a security.

Article 108 Where a petition for preservation of property is filed at fault, the petitioner shall compensate the owner of the property for the losses incurred thereby.

Article 109 Upon receipt of a petition, the people's court may make an order for advance enforcement in a case where:

(1)                a claim for alimony, support, maintenance, pension, or medical expenses is filed;

(2)                a claim for employee remuneration is filed; or

(3)                advance enforcement is necessary in case of an emergency.

Article 110 A people's court shall not make an order for advance enforcement unless:

(1)                the rights and obligations of the parties are beyond any doubt, and the life or operation of the party seeking advance enforcement will be materially affected in the absence of advance enforcement; and

(2)                the party against whom advance enforcement is sought has the ability to perform his obligations.

A people's court may order the party seeking advance enforcement to provide a security before making an order for advance enforcement, and shall dismiss the petiton if the party fails to provide the security as ordered. Where the party seeking advance enforcement loses the case, he shall compensate the losses incurred by the party against whom advance enforcement is sought due to the advance enforcement.

Article 111 Where a party against whom an order for preservation or advance enforcement is made challenges the order, he may file a petition for a reconsideration. The enforcement of the order shall not be suspended during the period of reconsideration.