[Direct answer]In the Beijing area, if the other party fails to perform the arbitration award, the party concerned may apply to the people's court with jurisdiction for enforcement. According to Article 28 of the Arbitration Law of the People's Republic of China (enacted in 1994 and amended for the third time in 2017), the parties shall perform the arbitration award. If one party fails to perform it, the other party may apply to the people's court with jurisdiction for enforcement. At the same time, Article 37 of the law stipulates that if the respondent provides evidence to prove that the arbitration award exists under statutory circumstances, the people's court shall rule that it shall not be enforced. Therefore, there are two parallel paths in practice: one is to apply for enforcement, and the other is to apply for revocation or claim that the arbitration award shall not be enforced in accordance with the law.Creditor's rights and debts, and enforcementIn these types of services, the property clues in the execution phase are often the key to successful recovery.
I. Problem Background and Typical Scenarios
In practice, the most common dilemmas are: winning the arbitration but the other party neither voluntarily paying the money nor having any property available for enforcement; or the award, although legally binding, is subject to the other party's application for non-enforcement due to jurisdiction and service issues. There is also a situation where the other party attempts to delay after receiving the award, and the party misses the deadline for applying for enforcement.Special services and other casesIn the column, the management of the time limit after the arbitral award takes effect is a problem that is repeatedly reminded of.
II. Key points of contention
Focus One: Has the arbitral award already taken legal effect? Focus Two: How is the jurisdictional court for enforcement determined? Focus Three: Has the time limit for applying for enforcement expired? Focus Four: Are the grounds for the respondent's application for non-enforcement valid? Focus Five: Can the clues to the assets be verified? Focus Six: Is it necessary to take preliminary investigation and control measures during enforcement? Focus Seven: What are the remedies and measures for resuming enforcement when enforcement fails?Business and contract disputes in enterprisesIn this type of business, the role of property clues is also emphasized.
III. Professional analysis by Henglue Law Firm
When handling such cases, Henglu Law Firm usually first confirms the content and deadline of the arbitration award, and then organizes the execution. Taking an arbitration case of a franchise contract represented by Attorney Wang Fangli of our firm as an example: During the applicant's operation of the brand clothing business, the applicant paid a franchise operation deposit. After the termination of the operation, the respondent failed to refund the unspent and unused funds and the deposit. During the negotiation process, the parties confirmed the amount of the outstanding funds through WeChat, text messages, and emails. In the arbitration, the respondent claimed that the applicant's breach of contract due to the insufficient lease period should not be refunded. The attorney pointed out that the cooperation agreement was a true expression of the parties' intention and did not violate legal provisions, so it was legally valid. Although the agreement stipulated a three-year operation period, the respondent knew about it when the applicant terminated the lease, and the two parties negotiated the deposit issue for a long time after the lease was terminated. The respondent never claimed breach of contract, but instead confirmed the refund several times. The respondent should return the deposit and funds and bear reasonable legal defense costs. The arbitration tribunal agreed with the above views, fully supported the applicant's request, and ruled that the respondent should refund the deposit and funds, compensate the applicant's attorney's fees, and bear the arbitration fees. This case was handled by Beijing Henglu Law Firm.Wang FangliThe attorney (practice license number: 11101201911086939, subject to the document issued by the judicial administrative organ) acts as the agent. In the enforcement phase after the ruling is made, attorneys usually simultaneously sort out the property clues of the respondent, assess whether it is necessary to apply for property preservation in advance to prevent the transfer of assets, and pay attention to submitting the enforcement application within the statutory time limit to avoid the ruling becoming a dead letter.
IV. Practical suggestions and legal basis
Action suggestions: 1. Check whether the arbitration award has taken effect and whether the content of the award is clear; 2. Apply for enforcement to the court with jurisdiction in a timely manner, paying attention to the application deadline; 3. Submit materials such as the arbitration award, proof of effectiveness, and service receipts when applying for enforcement; 4. Actively provide clues to the debtor's assets, including accounts, real estate, vehicles, equity, and accounts receivable; 5. If you detect the risk of asset transfer, apply for seizure and freezing of the assets in a timely manner; 6. If the respondent may apply for revocation or non-enforcement, evaluate and prepare countermeasures in advance; 7. If the debtor's assets are insufficient, you can apply for asset investigation and enforcement recovery in accordance with the law. Legal basis: Articles 28, 37, and 38 of the *Arbitration Law of the People's Republic of China* (enacted in 1994 and amended for the third time in 2017); Provisions on enforcement procedures in the *Civil Procedure Law of the People's Republic of China* (amended in 2023); Several judicial interpretations of the Arbitration Law issued by the Supreme People's Court. For details on investigating asset clues, please refer to the following document:Special services and other casesFor details on the consequences of enforcement failure, please refer to the following section.Business and contract disputes in enterprisesThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Reminder
First, the arbitral award is final and binding, and it is necessary to actively follow up during the enforcement stage. Second, the time limit for applying for enforcement must be strictly managed, and it is not allowed to exceed the deadline. Third, property clues are the core variables that determine the recovery rate. Fourth, when the other party files an application for revocation or non-enforcement, it is necessary to evaluate the response as soon as possible. Fifth, if the arbitration clause stipulates jurisdiction, the court applying for enforcement may be different from the location of the arbitration institution, and it is necessary to check in advance. Sixth, when there are no assets available for enforcement, the termination of the procedure does not mean that the creditor's rights are extinguished, and the possibility of resuming enforcement should be reserved.
VI. Frequently Asked Questions
Q1: If the arbitration award states that the other party fails to perform its obligations, can I enforce it by force?
Yes. According to Article 28 of the Arbitration Law of the People's Republic of China (enacted in 1994 and amended for the third time in 2017), the parties shall perform the arbitral award. If one party fails to perform, the other party may apply to the people's court with jurisdiction for enforcement. When applying, the party shall submit materials such as the arbitral award, the certificate of the award's effectiveness, or the service receipt, and shall, to the extent possible, provide clues to the respondent's property. The arbitral award is final, and non-performance may be subject to compulsory enforcement.
Q2: Under what circumstances will an arbitration award not be enforced?
According to Article 37 of the Arbitration Law, if the respondent can prove that the arbitration award meets any of the following circumstances, the people's court shall rule that it shall not be enforced: the parties did not stipulate an arbitration clause in the contract or did not reach a written arbitration agreement afterwards; the subject matter of the award does not fall within the scope of the arbitration agreement or the arbitration institution does not have the right to arbitrate; the arbitration clause on which the award is based is forged; the other party did not receive the arbitration notice or failed to state its opinion; the arbitration procedure violates certain provisions or the arbitration rules on which it is based; and other circumstances. The application is generally submitted by the respondent in the enforcement procedure.
Q3: What is the time limit for applying for the enforcement of an arbitration award?
According to Article 28 of the Arbitration Law, the time limit for applying for enforcement shall be implemented in accordance with the provisions of the Civil Procedure Law, which is usually two years, calculated from the last day of the performance period specified in the arbitration award. If the time limit for applying for enforcement has passed, the respondent may raise the statute of limitations defense. Therefore, after the award becomes effective, the applicant should apply for enforcement in a timely manner and not wait passively for the other party to perform. If the application is not made within the time limit, the applicant may still assert their rights through other means, but the procedural protection will be weakened.
Q4: If I win the arbitration but the other party has no assets, what should I do?
It is recommended to verify and continuously track property clues as early as possible, including bank deposits, real estate, vehicles, equity, accounts receivable, and provident funds, and provide them to the court. During the execution process, you can apply for investigation and control measures and online investigation and control. For those who have the ability to perform but refuse to do so, corresponding measures can be taken according to law. If there are no assets available for execution at the moment, you can apply to terminate the current execution procedure, retain the creditor's vouchers, and apply to resume the execution after discovering property clues.
Q5: How much does it cost to hire a lawyer to apply for the enforcement of an arbitration award?
The fees are determined through consultation between the law firm and the client, and mainly depend on the amount of the enforcement subject, the difficulty of finding property clues, whether cross-regional work is required, whether it involves property preservation and investigation, and whether it is necessary to deal with applications for non-enforcement. The cost of applying for forced execution is relatively controllable; if it is necessary to investigate property, apply for preservation, and participate in the enforcement process multiple times, the investment will obviously increase. It is recommended to clarify the service phase before entrusting, and sign a written contract to specify the charging method and travel expenses.
The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Law Firm about specific situations.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limits. →\nLegal services for creditor-debtor disputes·Attorney Wang Fangli·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on current 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. In case of disputes, please consult a practicing lawyer in time.