Enforcement: Liability for Evading Obligations

Enforcement: Liability for Evading Obligations

If the losing party maliciously works with others to evade his obligations specified in an award, civil or even criminal liability may be imposed on him, including a fine, detention, or even imprisonment considering the consequences of his violation.

For example, Article 116 of The Civil Procedure Law states, “Where a party against whom enforcement is sought colludes with others in bad faith to evade his obligations under any legal process through litigation, arbitration, or mediation, the people's court shall impose a fine or detention on them, where appropriate, or hold them criminally liable according to law.”

A public entity that is obliged to provide assistance in the investigation or enforcement by the court may also be subject civil administrative liabilities or disciplinary penalties in accordance with Article 117 of The Civil Procedure Law if such public entity:
  1. refuses or hinders the investigation or collection of evidence by the court;
  2. refuses to assist in the investigation, seizing, freezing, transfer, or liquidation of property upon receipt of a notice of enforcement assistance from the court;
  3. refuses to withhold the income of the party against whom enforcement is sought, perform the formalities for the transfer of the relevant property certificates, surrender the relevant papers, certificates, or other property upon receipt of a notice of enforcement assistance from the people's court; or
  4. refuses to provide assistance in enforcement otherwise.

If a public entity commits any of the above acts, the court may impose a fine on the person in charge of the entity or the person performing such acts, detain them if they fail to assist, and request the supervisory authority or any other competent authority to impose disciplinary penalties on them.

Practising lawyers

Robert Zhang

An international lawyer registered in Shanghai, China. Master's degreePublish…

Steve Li

An international lawyer registered in Shanghai, China. Master's degreePublish…

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