Provisions of the Supreme People's Court on Several Issues Concerning the Reconciliation of Enforcement

Provisions of the Supreme People's Court on Several Issues Concerning the Reconciliation of Enforcement
Provisions of the Supreme People's Court on Several Issues Concerning the Reconciliation of Enforcement

February 23, 2018

For the purpose of further standardizing the reconciliation of enforcement and protecting the legal rights and interests of the parties concerned and interested parties, these Provisions are formulated in accordance with the Civil Procedure Law of the People's Republic of China and other applicable laws and regulations and in consideration of practical enforcement.

Article 1 The parties concerned may negotiate amongst themselves to reach a reconciliation agreement, to change the subjects of rights and obligations, and objects, time limit, place and manners in respect of the agreement performance stated in the effective legal instrument.
A reconciliation agreement is generally made in writing.

Article 2 Once a reconciliation agreement is reached, the people's court may rule to suspend enforcement under any of the following circumstances,
1. Where all parties concerned submit a written reconciliation agreement to the people's court together;
2. Where a party concerned submits a written reconciliation agreement to the people's court and other parties concerned recognize such reconciliation agreement; or
3. Where all parties concerned reach a reconciliation agreement orally, and the enforcement officer writes down the details of the reconciliation in a written record which is then signed or stamped by all parties concerned.

Article 3 Where the enforcement applicant requests to lift the sealing-up, detaining or freezing measures, after the enforcement has been suspended, the people's court shall agree to such request.

Article 4 Where an agent ad litem acts in a reconciliation on a commission basis, it shall have been granted special authorization by the principal.

Article 5 All parties concerned may change a reconciliation agreement by consensus, and submit an updated agreement to the people's court; alternatively, the enforcement officer may write the changes in a written record and then have all parties concerned sign or stamp such record.

Article 6 Where all parties reach a reconciliation agreement that a debt may be repaid in kind, the people's court shall not rule that the debt be repaid in kind in accordance with such agreement.

Article 7 When a reconciliation agreement is performed, the debtor may apply to the related authority for the placing of the subject matter in escrow according to the law, in the case of any circumstances set forth in Article 101 of the Contract Law; where payment is made in cash to perform a reconciliation agreement, the debtor may request before the court in charge of enforcement to place the subject matter in escrow.

Article 8 Where a reconciliation agreement has been fully performed, the people's court shall conclude the case.

Article 9 Where the party subject to enforcement refuses to perform a reconciliation agreement, the enforcement applicant may request resumption of the enforcement of the original effective legal instrument, or file a lawsuit with the people's court to request the performance of the reconciliation agreement.

Article 10 A request filed to resume the enforcement of the original effective legal instrument shall be governed by provisions in respect of the time limit for filing a request for enforcement, as specified in Article 239 of the Civil Proceedings Law.
Where the party concerned refuses to perform the reconciliation agreement, the time limit for filing a request for resumption of the enforcement of the original effective legal instrument shall be calculated from the deadline for the performance of the reconciliation agreement.

Article 11 Where the enforcement applicant requests resumption of the enforcement of the original effective legal instrument, on the grounds of the failure of the party subject to enforcement to perform the reconciliation agreement, the people's court shall order resumption of enforcement if it deems after examination that the reason is justified; the people's court shall not order resumption of enforcement under any of the following circumstances,
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