[Direct answer]In the Beijing area, according to the provisions on enforcement jurisdiction of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and implemented on January 1, 2024), the property portion of legally effective civil judgments and rulings, as well as criminal judgments and rulings, shall be enforced by the people's court of first instance or the people's court at the same level as the people's court of first instance where the property to be enforced is located; other enforcement bases such as arbitral awards shall be enforced by the people's court of the debtor's domicile or the people's court where the property to be enforced is located. Therefore, when applying for enforcement, the applicant can choose the court that is more conducive to investigation and disposition based on the distribution of the debtor's property. If the property is located elsewhere, the applicant can entrust the local court to enforce it or apply to the court where the property is located. When selecting the jurisdictional court, the applicant should comprehensively consider the location of the property, the efficiency of enforcement, and the convenience of investigation and disposition, so as to avoid delaying enforcement due to improper jurisdiction.

1. Problem background and typical scenarios

After receiving the effective judgment, the parties often struggle with the choice of which court to apply for enforcement to. Typical scenarios include: the judgment is issued by a court in Area A, but the other party's assets are located in Area B; the other party has no assets under his/her name, but the assets of the associated company or shareholders are located in other regions; they do not know which court to apply to after the arbitration award takes effect; there are assets in multiple locations, so they need to choose the most advantageous one; the assets have been sealed in another case, so they need to determine the order of enforcement. The choice of jurisdiction directly affects the efficiency of investigation and control and the possibility of obtaining compensation.

II. Key points of contention

First, the jurisdictional differences between effective judgments and arbitral awards. Second, the determination of the location of the property and the burden of proof. Third, the applicable conditions for entrusted enforcement and enforcement in other regions. Fourth, when the debtor is a company, the shareholders' liability and the path to adding the debtor. Fifth, the participation in distribution and the order of enforcement when the property has been sealed up in other cases. Sixth, the handling of jurisdictional objections. Seventh, the determination of the subject of enforcement and enforcement fees. These issues determine whether the enforcement can proceed smoothly.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm once represented a dispute over shareholders' liability for damaging the interests of the company's creditors: The parties and a certain company had a dispute over an intermediary contract, and the effective judgment determined that the company should return the intermediary service fee of 423,500 yuan. After applying for enforcement, the enforcement was terminated because the company had no property to be enforced. After retrieving the materials, the lawyers found that the company's shareholders respectively subscribed to a capital contribution of 9 million yuan and 1 million yuan, with a subscription period until 2039. There were no records of actual payment in the industrial and commercial archives. Based on relevant judicial interpretations and adjudication rules, the lawyers argued that the company, as the enforced party, had exhausted all means of enforcement but still had no property, and had the grounds for bankruptcy but did not apply for bankruptcy. Therefore, the shareholders should no longer enjoy the benefit of the subscription period for the unpaid capital and should bear supplementary compensation liability for the company's unpaid debts within the scope of their unpaid capital. Consequently, a lawsuit was initiated for the shareholders' liability for damaging the company's creditors' interests. The court adopted the lawyers' opinion and ruled that the two shareholders should bear supplementary compensation liability within the scope of their unpaid capital. This case shows that enforcement jurisdiction and enforcement strategies are mutually complementary: Choosing the right enforcement court is conducive to rapid property investigation and control, while when the company has no property, it is necessary to expand the scope of liability property by investigating the shareholders' capital contributions, adding or suing the shareholders separately. In practice, Henglue Law Firm usually checks the enforced party's real estate, vehicles, equity, and bank account information before applying for enforcement; after entering enforcement, it promotes through providing property clues, applying to add the enforced party, and initiating enforcement objection lawsuits, etc. When necessary, it initiates liability lawsuits against the shareholders. The jurisdiction and property disposal rules for enforcement cases in Beijing courts are relatively mature, and choosing a court matching the location of the property can usually improve the efficiency of disposal. This case was handled by Beijing Henglue Law Firm.Yuan HangAttorney (practice certificate number: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acting as the agent.

IV. Practical suggestions and legal basis

Action list: 1. Inquire into the distribution of the debtor's assets to select the jurisdictional court; 2. Prepare effective legal documents, identity and subject materials, and enforcement applications; 3. For cases where the company has no assets, investigate the shareholders' contributions and related assets; 4. For assets located in other regions, consider delegating enforcement or applying for enforcement at the location of the assets; 5. After entering the enforcement phase, actively provide clues to the location of the assets and promote the implementation of enforcement measures. Legal basis: - The Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and implemented on January 1, 2024) regarding enforcement jurisdiction, delegated enforcement, and enforcement measures; - Relevant provisions of the Supreme People's Court on the change and addition of parties and enforcement objections in civil enforcement. For cases involving enforcement, you may refer to the following documents:Creditor's rights and debts, and enforcement; For matters involving the company's equity, you can refer to the following for referenceBusiness and contract disputes in enterprises; For matters involving contractual claims, you can refer to the following for reference.Property transactions and construction projectsThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, the choice of jurisdiction depends on the distribution of assets. Choosing the right jurisdiction makes the enforcement process smoother. Secondly, even if a company has no assets, it doesn't mean there's no way out. Shareholders can be held liable. Thirdly, entrusting enforcement and conducting investigations and controls in other regions are common methods. Fourthly, actively providing clues to the location of assets can significantly improve efficiency. Fifthly, attention should be paid to the time limits for applying for enforcement and adding new defendants to the enforcement process. For matters involving enforcement and recovery of debts, the parties concerned can seek assistance through legal means.Creditor's rights and debts, and enforcementWe can provide a comprehensive solution for the service, which includes the integration of the company's equity interests.Business and contract disputes in enterprisesFor cross-border assets, you can refer to the following information for reference.\nFinancial capital and cross-border transactions involving foreign entities..

VI. Frequently Asked Questions

Q1: After the judgment, which court should I apply to for enforcement?

Generally, an application can be submitted to the court of first instance that issued the effective judgment, or to the court located at the place where the property to be executed is located, which is at the same level as the court of first instance. If it is an arbitration award, the application can be submitted to the people's court located at the defendant's residence or the place where the property to be executed is located. When making the choice, the applicant may consider the distribution of the property and the convenience of investigation and control comprehensively.

Q2: What materials are required to apply for enforcement?

You need to prepare the application for enforcement, the effective legal documents and certificates of effectiveness, the identity or main materials of the applicant and the person subject to enforcement, as well as the materials of property clues. If you entrust a lawyer, you also need to provide the power of attorney and the lawyer's practice materials. Having all the materials ready can speed up the filing and investigation. It is recommended to submit the account, real estate and equity information you have already obtained at the same time.

Q3: Do I need to pay a fee to execute the order?

Generally, no application fee is required to apply for enforcement. The enforcement fee shall be borne by the party against whom the enforcement is sought and shall be calculated in proportion to the amount of the enforcement subject. If there are costs involved in appraisal, auction, and custody, etc., these costs may be paid in advance and then deducted from the enforcement funds. The specific standards shall be determined in accordance with the relevant charging regulations, and the enforcement court may be consulted for confirmation.

Q4: If the company doesn't have the money, who will they lay off first?

It can be investigated whether the shareholders have fulfilled their obligation to make contributions, whether there is embezzlement of funds or commingling of assets, and when conditions permit, apply to add the shareholders as the debtors or initiate a lawsuit against the shareholders for damaging the interests of the company's creditors, requiring them to bear supplementary compensation liability within the scope of unpaid contributions, etc. It can also pay attention to the clues of the assets of the affiliated companies and the actual controllers.

Q5: What should I do if my property is sealed up by others first?

You can apply to participate in the distribution or raise objections to the execution of the subject matter. If the person subject to enforcement is a citizen or other organization and the property is insufficient to pay off all debts, you can apply to participate in the distribution and receive compensation in proportion; if there are disputes over priority claims or the order of enforcement, they can be resolved through enforcement objections and lawsuits against enforcement objections. It is recommended to assert and submit proof of creditor's rights as soon as possible.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limits.\nLegal services for creditor-debtor disputes·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.