[Direct answer]In the Beijing area, whether it is legal or not depends on whether it meets the statutory conditions. According to the relevant provisions of the "Interpretation of the Supreme People's Court on Several Issues Concerning the Change and Addition of Parties in Civil Enforcement" (amended in 2020), the change or addition of the enforced party during enforcement shall comply with the statutory conditions, and the court shall not arbitrarily expand the scope of addition. In the case of operating under a subcontracting arrangement, if the subcontractor operates externally under the name of the contracting unit, and the relevant contracts and registration subjects are the contracting units, the creditor may claim corresponding responsibilities according to the nature of the subcontracting relationship. However, whether it can be directly added during the enforcement process still needs to be judged against the circumstances listed in the provisions, such as false investment, withdrawal of investment, and failure to liquidate and deregister. If it does not meet the statutory conditions, it usually should file a lawsuit separately to request the subcontractor and the contracting unit to bear joint and several or supplementary liabilities. The identification of the subcontracting relationship requires written agreements, settlement of operations, and evidence such as personnel, premises, and external names.

I. Problem Background and Typical Scenarios

The court has issued a judgment, but it's difficult to recover the money. Creditors often consider whether to add the relevant parties to the lawsuit. Subcontracting operations are more common in the construction, transportation, takeout, and retail industries: the actual operators subcontract to qualified units and sign contracts and collect payments in the name of these units. In the enforcement stage, creditors often hope to directly add the subcontractors or the units they subcontract to, but the law places restrictions on such additions. When handling enforcement cases in Beijing, the court reviews the applications for adding parties more strictly, and those that do not meet the conditions will be ruled out.

II. Key points of contention

There are four points that need to be clarified: Firstly, what are the statutory circumstances under which an additional party may be added to the enforcement proceedings, and whether the subcontracting relationship is included in these circumstances; Secondly, the standards for identifying a subcontracting relationship and the requirements for evidence; Thirdly, whether it is possible to add an additional party during the enforcement proceedings or whether it is necessary to file a separate lawsuit; Fourthly, the division of responsibilities between the subcontracting unit and the actual operator. Generally speaking, the addition of an additional party to the enforcement proceedings is subject to statutory restrictions, while bringing a separate lawsuit to seek accountability is often more flexible and effective.

III. Professional analysis by Henglue Law Firm

A case related to enforcement handled by Henglue Law Firm demonstrates the idea of holding responsible parties accountable through separate litigation when enforcement encounters obstacles. Ma * and A Company had a dispute over an intermediary contract. According to the judgment of the Chaoyang District People's Court of Beijing, A Company should return the intermediary service fee of 423,500 yuan. After the judgment took effect, A Company failed to fulfill its obligation, and Ma * applied for enforcement. However, the enforcement was terminated due to A Company having no assets available for enforcement. Ma * then entrusted Attorney Yun Hang of our firm to recover the debt. Attorney Yun Hang found through retrieving materials that A Company's shareholders, Liu * and Zhang *, each subscribed to a capital contribution of 9 million yuan and 1 million yuan respectively, with the subscription period ending on September 23, 2039. However, there were no records of actual payment in the industrial and commercial archives. Based on relevant judicial interpretations and adjudication rules, the attorney argued that since A Company, as the debtor, had no assets available for enforcement after exhausting all enforcement measures and met the criteria for bankruptcy but failed to apply for bankruptcy, the creditor had the right to request the shareholders whose subscription period had not yet expired to bear supplementary compensation liability for the company's debts within the unsubscribed amount. Therefore, a lawsuit was initiated against the shareholders for their liability for harming the creditor's interests of the company. The court adopted the attorney's argument and ruled that Liu * and Zhang * should bear supplementary compensation liability for A Company's debts to Ma * within the unsubscribed amounts of 9 million yuan and 1 million yuan respectively. This case shows that when it is impossible to directly add responsible parties in the enforcement process, holding them accountable through separate litigation can often also achieve the creditor's rights. The key lies in identifying the responsible parties and legal basis. This case was handled by Beijing Henglue Law Firm.Yuan HangAttorney (Practice Certificate No.: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acting as the agent.

IV. Practical suggestions and legal basis

Action suggestions: First, sort out the registration, contracts, and receipt of payments of the debtors to determine whether there is a subcontracting relationship; Second, evaluate whether it is possible to apply for additional litigation based on the statutory circumstances; Third, if the conditions for additional litigation are not met, consider suing for joint and several or supplementary liability in a timely manner; Fourth, investigate the other party's property clues and apply for preservation measures simultaneously to prevent the transfer of assets. For matters involving enforcement and debt recovery, you may refer to the relevant provisions.Creditor's rights and debts, and enforcement; For those involving contracts and business relationships, you can refer to it for reference.Business and contract disputes in enterprisesLegal basis: The relevant provisions of the "Interpretation of the Supreme People's Court on Several Issues Concerning the Change and Addition of Parties in Civil Enforcement" (amended in 2020), and the relevant provisions of the "Civil Code of the People's Republic of China" (effective as of January 1, 2021) concerning joint and several liability and the relativity of contracts. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, the enforcement of additional payments is subject to statutory restrictions and cannot be applied for solely on the grounds of subcontracting or affiliated relationships. Secondly, the determination of subcontracting relationships relies on evidence such as agreements, settlements, and external identities. Thirdly, bringing separate lawsuits to seek accountability is a common approach when enforcement encounters obstacles, and such actions should proceed in parallel with the enforcement process. Fourthly, it is essential to identify and secure property clues as early as possible to avoid winning the lawsuit but failing to recover the money. For matters involving enforcement and recovery of compensation, you can seek assistance through the following channels:Creditor's rights and debts, and enforcementThe service is supported, and you can refer to it when handling difficult and complex casesSpecial servicesColumn.

VI. Frequently Asked Questions

Q1: Can a person who operates a business under the guise of a subcontractor be directly added to the list of individuals subject to enforcement?

Generally, it is not possible to add a party to the lawsuit directly based solely on the subcontracting relationship. To add a party to the lawsuit, the statutory circumstances listed in laws and judicial interpretations must be met, such as misrepresentation of investment, withdrawal of investment, and deregistration without liquidation. If the statutory circumstances are not met, the creditor should generally file a separate lawsuit to request the subcontractor or the unit being subcontracted to bear corresponding responsibilities.

Q2: How to prove the subcontracting relationship?

It can be proven by comprehensive evidence such as the subcontracting agreement, contracts signed in the name of the subcontracting unit, payment accounts and settlement records, business premises and personnel arrangements, external publicity and business transactions, etc. The evidence should reflect the subcontracting arrangement and its continuity between the actual operating entity and the nominal entity. It's difficult to determine the subcontracting arrangement solely based on unilateral statements.

Q3: What responsibilities does the unit being used for "ghost registration" need to bear?

It depends on the nature of the subcontracting relationship and specific legal provisions. In practice, if the subcontracted unit operates under the name of the contracting unit, the subcontracted unit may be held liable for corresponding responsibilities or bear joint and several liabilities with the actual operator. The specific scope of responsibilities needs to be determined based on the contractual counterpart, registration and public disclosure, and the degree of fault. It is recommended to seek legal advice before making a claim.

Q4: What should I do if my additional application is rejected?

It is possible to assert substantive rights by filing a separate lawsuit, such as requesting the actual operator or relevant parties to assume joint and several or supplementary liability. It is also possible to assert these rights in appeal, review, and other procedures, or to reapply after providing new evidence. The separate lawsuit and the enforcement process can proceed in parallel. If necessary, an application for property preservation can be made to ensure that the future judgment can be enforced.

Q5: What other options do we have if we can't get the money we need?

It is possible to investigate the shareholders' investment of the debtor, related transactions, and property clues, and to claim accelerated maturity of investment, identity confusion, or right of revocation; apply to include the debtor in the list of dishonest people and restrict high consumption; and, for those who are able to enforce but refuse to do so and the circumstances are serious, it is possible to promote the prosecution of the crime of refusing to enforce judgments and rulings. The specific approach should be combined with evidence evaluation.

The above Q&A is mainly based on judicial practices in the Beijing area. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →\nLegal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglu 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 a dispute arises, please consult a practicing lawyer in a timely manner.