From: Ten Typical Enforcement Cases for Recognition and Enforcement of Extraterritorial Arbitral Awards and Court Judgments

[Information of the parties involved]

Applicant: AA Co., Ltd.

Respondant: a Mr. Wu.

Basic Information of the Case

AA Limited and Mr Wu signed the 'Letter of Intent for Transaction', agreeing that Mr Wu paid over 46 million US dollars to AA Limited, and the Paris Commercial Court issued a ruling granting the execution power of the 'Letter of Intent to Deal'. After the ruling is issued, Mr Wu did not make payment according to the deadline specified in the "Letter of Intent" due to Mr Wu's property is located in Beijing, and AA Co., Ltd. applied to the Fourth Intermediate people's court of Beijing for recognition and enforcement of the above ruling (including its Letter of Intent to Deal which gives enforcement). After examination, the Fourth Intermediate people's court of Beijing ruled to recognize and implement the ruling made by the Paris Commercial Court.

After the case entered the execution stage, the Fourth Intermediate people's court of Beijing Municipality served legal documents such as the execution notice to the person subjected to execution, but the person subjected to execution failed to perform. Later, measures to limit high consumption were taken against the person subjected to enforcement and included in the list of Defaulted executee. After multiple phone conversations with the executed person, Mr Wu delayed execution for various reasons. Immediately, the Fourth Intermediate people's court of Beijing issued a statement to Mr The valuation process for the equity of a company in Fujian held by Wu will be initiated, and the evaluation institution will be determined through the National Court Inquiry and Evaluation System. At the same time, Mr Wu and a company in Fujian delivered a notice of assistance in execution, requesting them to provide the necessary information for value evaluation, and issued an investigation order to the applicant's authorized litigation representative to retrieve the industrial and commercial and tax registration materials of a company in Fujian. Due to insufficient materials extracted from a certain company in Fujian, six appraisal agencies confirmed by lottery have returned the value appraisal commission on the grounds that they are unable to obtain the necessary information for equity appraisal. During the execution, the Fourth Intermediate people's court of Beijing froze Mr The insurance policy under Wu's name was forcibly terminated and the cash value of over 190000 yuan was deducted after communication with him was unsuccessful. All the case funds were returned to the applicant for enforcement. Due to the temporary inability to dispose of the property discovered under the name of the person being executed, the execution of the case was terminated.

Enforcement Results

The equity held by the executed party has not been determined the reference price for disposal after six entrusted evaluations, and cannot be disposed of temporarily. The execution of this case will be terminated after some of the case funds have been partly enforced.

Typical significance

The case preserved the property of the person subjected to execution during the review, recognition, and enforcement process, avoiding the transfer of property by the person, and effectively protecting the legitimate rights and interests of the applicant for execution. During the implementation process of the Fourth Intermediate people's court of Beijing, various implementation measures were taken to promote the debt performance of the person subjected to enforcement. However, due to the objective problems such as the difficulty in extracting the evaluation materials faced by the equity evaluation and the target company's failure to cooperate, six evaluation companies were successively entrusted to determine the equity value, and the implementation was finally terminated after communication with the applicant for enforcement. Although equity and other types of property disposal problems are common problems in current enforcement cases, the Fourth Intermediate people's court of Beijing insists on equal protection of domestic and foreign parties in handling international judicial assistance cases, actively explores new paths of implementation, and resolutely promotes the efficiency and success rate of property disposal.

Expert comments

The recognition and enforcement of foreign court judgments are of great significance and role in international civil and commercial litigation. France is one of the earliest countries to conclude a civil and commercial judicial assistance treaty with China. This case is a practice of the agreement on civil and commercial judicial assistance between China and France. The Beijing Fourth Intermediate People's Court ruled to recognize the ruling made by the Paris Commercial Court, which preserved the property of the person subjected to enforcement during the execution process. Six evaluations of equity were commissioned. Although the value evaluation of equity could not be completed temporarily due to practical difficulties, it has fully demonstrated the fair, diligent, and responsible judicial image of Chinese courts, promoting the

The positive development of judicial assistance in civil and commercial matters between China and France has contributed to the friendly relationship between the two countries.