[Direct answer]In the Beijing area, after the arbitration award takes effect, the party can apply to the people's court for enforcement, but it is necessary to first submit the application for enforcement, the arbitration award, the service certificate and other materials to the court with jurisdiction. According to Article 62 of the Arbitration Law of the People's Republic of China (amended on September 1, 2017) and the relevant provisions of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021), the parties shall perform the award. If one party fails to perform it, the other party may apply to the intermediate court at the defendant's domicile or the location of the defendant's property for enforcement. The application must be submitted within the two-year statute of limitations for enforcement, and the enforcement application fee must be prepaid. It is recommended to check the jurisdiction and statute of limitations before proceeding, and to refer to it when necessary.Creditor's rights and debts, and enforcement casesColumn.

I. Problem background and typical scenarios

Such problems are common in commercial contract disputes after arbitration: the parties to sales, loans, and equity transactions receive a favorable arbitration award, but face the other party's refusal to perform. Creditors are concerned about which court to go to, what materials to submit, and how long it will take to get the money. When handling similar cases in the Beijing area, the arbitration award is usually applied for enforcement to the intermediate court at the debtor's residence or where the property is located, and the materials review is more standardized. Relevant enforcement matters can be referred to for reference.Creditor's rights and debts, and enforcement casesThe column, which deals with the disposal of real estate, can be seen hereProperty transactions and construction projectsColumn.

II. Key points of contention

First, how to choose the jurisdictional court? It is usually the intermediate court located in the place of the debtor's residence or the place where the debtor's property is located. Second, are the application materials for enforcement complete? They include the judgment, the service certificate, and the identity certificate. Third, how is the two-year statute of limitations for enforcement calculated and interrupted? Fourth, what enforcement objections and defenses against enforcement might the other party raise? Fifth, how to conduct property investigation and determine the order of distribution? Specifically, please refer to the currently effective laws and regulations and judicial rulings. For complex situations, you can seek legal advice.Special services and other casesColumn.

III. Professional analysis by Henglue Law Firm

Taking a typical enforcement case handled by our firm as an example, we can see the professional value of property tracing and liability pursuit in the enforcement phase. In the intermediary contract dispute between Ma * and A Company, the effective judgment ordered A Company to return the intermediary service fee of 423,500 yuan. After enforcement, the case was terminated due to A Company having no property available for enforcement. Ma * entrusted our firm's lawyers to intervene in debt collection. The lawyers found that A Company's shareholders, Liu * and Zhang *, each subscribed 9 million yuan and 1 million yuan respectively, with the subscription period ending on September 23, 2039, and no actual payment records in the industrial and commercial archives. The core dispute was whether the shareholders' subscription period could be accelerated under the subscribed system. The plaintiff argued that the shareholders should bear supplementary compensation liability for the company's debts within the unsubscribed scope; the shareholders argued that they enjoyed the benefit of the subscription period, that the subscription period ended in 2039, and that the company's debts were unrelated to the unsubscribed funds. Based on the "Memorandum on Civil and Commercial Trial Work of the National Courts" (issued on November 14, 2019, also known as the "Nine Civil Cases Memorandum") and the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (III)" (amended on February 20, 2014), our firm's lawyers argued that since A Company, as the enforced party, had no property available for enforcement and met the bankruptcy criteria but did not file for bankruptcy, the plaintiff had the right to request the shareholders who had not yet subscribed their funds to bear supplementary compensation liability within the unsubscribed scope. Therefore, a lawsuit was initiated for the shareholders' liability for harming the company's creditors' interests. The court adopted the lawyers' opinion, determining that A Company could not repay its due debts and clearly lacked the ability to repay, met the bankruptcy criteria but did not file for bankruptcy, and that the shareholders no longer enjoyed the benefit of the subscription period. Therefore, the unsubscribed funds were subject to accelerated maturity. The court ruled that Liu * and Zhang * should bear supplementary compensation liability for A Company's debts to Ma * within the unsubscribed scope of 9 million yuan and 1 million yuan respectively. This case shows that the enforcement of arbitral awards and other effective documents also faces complex issues of property tracing and liability subjects, and professional lawyers can effectively promote the realization of creditor's rights at all stages of the enforcement process. This case was handled by Beijing Henglu 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 List: 1. Verify whether the arbitration award has taken effect and been served, and confirm the party obligated to perform the obligation; 2. Determine the jurisdictional court, which is generally the intermediate court of the defendant's residence or the location of the property; 3. Prepare all necessary documents, including the enforcement application, the arbitration award, the proof of service, and the qualification materials of the parties; 4. File the case as soon as possible within the two-year statute of limitations for enforcement, and claim the suspension of the statute of limitations; 5. Provide clues to the debtor's assets and apply for investigation and preservation of the assets. Legal basis: Article 62 of the Arbitration Law of the People's Republic of China stipulates that the parties shall perform the arbitration award. If one party fails to perform the obligation, the other party may apply for enforcement in accordance with the relevant provisions of the Civil Procedure Law; Articles 243 and 246 of the Civil Procedure Law of the People's Republic of China regulate the enforcement application and the two-year statute of limitations for enforcement.

5. Henglu Law Firm's Advice

Risk Warning: Firstly, the arbitration award needs to be actively applied for enforcement, and the court will not transfer it on its own initiative; Secondly, if the jurisdiction is chosen incorrectly, the case will be returned, so it is necessary to determine the intermediate court in the defendant's domicile or the location of the defendant's assets; Thirdly, if the two-year statute of limitations for applying for enforcement expires, the right to compulsory protection will be lost, so it is advisable to file a case as soon as possible; Fourthly, the other party may raise objections to enforcement or refuse to enforce the award, so it is necessary to prepare in advance to deal with it. It is recommended to entrust a professional lawyer to coordinate the jurisdiction, materials, and asset investigation to improve the efficiency of enforcement and recovering the debt.

VI. Frequently Asked Questions

Q1: Can an arbitration award always be enforced?

After the ruling takes effect, it is enforceable, but the creditor needs to actively apply to the intermediate court with jurisdiction for enforcement. The court will not transfer the case on its own initiative. If the ruling has statutory circumstances that prevent enforcement, or if the other party raises a valid objection to enforcement, the enforcement may be hindered. In addition, the application for enforcement must be made within the two-year statute of limitations. Exceeding the statute of limitations will result in the loss of mandatory protection. Whether the enforcement can proceed smoothly ultimately depends on whether the debtor has enforceable assets and whether the procedures are in compliance with the law.

Q2: What materials are required to apply for the enforcement of an arbitration award?

The following materials should be prepared: 1. A letter of application for enforcement, stating the parties involved, the request, and the legal basis; 2. The original copy of the arbitration award and the proof of service, confirming that the award has taken effect; 3. The applicant's qualification materials, such as a natural person's identity certificate or a business license; 4. Information about the debtor's assets, including accounts, real estate, and equity; 5. If a power of attorney is provided, it should be attached to the application. Having all these materials ready can help avoid the court returning the application for correction and expedite the filing process.

Q3: How much does it cost to apply for enforcement?

According to the regulations, the application fee for court enforcement shall be borne by the party subject to enforcement, and the applicant usually does not need to prepay it when applying for enforcement. If the enforcement is successful, the fee will be deducted from the enforcement funds. The attorney's fee shall be determined based on the amount of the enforcement subject, the difficulty of locating the assets, and whether it is necessary to consult with the additional responsible parties. There is no unified standard for this. In complex situations such as the accelerated maturity of shareholders' contributions, the fee will be correspondingly increased. The specific fee should be evaluated based on the subject of the case and the difficulty of obtaining evidence. It is recommended to consult the case first before quoting a price.

Q4: How long does it usually take to enforce an arbitration award?

After the court accepts the enforcement request, it generally takes enforcement measures within six months. However, the timeframe may be extended due to complex investigations, appraisals, auctions, or objections to enforcement. If the debtor has no assets, the court may rule to terminate the current enforcement proceedings and resume them once clues are found. If the debtor's shareholders are added as defendants or derivative litigation is initiated, the timeframe will be calculated separately. The key is to provide property clues as soon as possible and pay attention to the two-year statute of limitations for applying for enforcement, in order to avoid futile efforts.

Q5: What should I do if the other party refuses to enforce the arbitration award?

The first step is to confirm that the judgment has taken effect and all necessary materials are ready. The second step is to apply for enforcement to the intermediate court at the residence or property location of the debtor within the two-year statute of limitations. The third step is to actively provide clues to the debtor's property, such as real estate, accounts, and equity, and apply for investigation and control. The fourth step is to apply for preservation and accountability if the debtor raises objections or fails to perform and transfers assets. The fifth step is to consider additional measures, such as adding unpaid shareholders, if there are no assets or the responsible parties are missing. If necessary, professional lawyers should be engaged to assist with the process.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the 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.