[Direct answer]In the Beijing area, the execution suspension is a temporary halt of the execution process due to statutory reasons, which will resume after the reasons disappear. According to Article 263 of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022), there are five circumstances in which the execution should be suspended: the applicant indicates that the execution can be postponed; the third party raises a reasonable objection to the subject of execution; the debtor dies and needs to wait for the successor to inherit the rights and obligations; the legal person or other organization terminates and has not yet determined the successor to the rights and obligations; and other circumstances where the people's court deems it necessary to suspend the execution. In addition, if a bankruptcy application involving the debtor as the obligor is accepted, the execution process should also be suspended. The suspension does not extinguish the creditor's rights, and the resumption does not require re-filing of the case.
1. Problem background and typical scenarios
The suspension of enforcement is often confused with the termination of this enforcement and the termination of enforcement, and the legal consequences of the three are significantly different. Typical scenarios include: the applicant for enforcement and the person subject to enforcement reach an enforcement settlement and request a suspension of enforcement; a third party raises an ownership objection to the seized property, and the court rules to suspend the enforcement of the subject matter; the person subject to enforcement enters bankruptcy proceedings, and individual repayments must be stopped; the person subject to enforcement is missing or has died, and it is necessary to wait for the heirs to be determined; the ownership of the subject matter needs to be confirmed by a valid judgment. The most common mistake made by parties is that after receiving the suspension ruling, they take no further action, mistakenly believing that the creditor's rights have been extinguished, and neither track whether the grounds for suspension have disappeared nor apply for resumption of enforcement when the person subject to enforcement obtains new assets.
II. Key points of contention
The dispute focuses on three points. Firstly, the differences between suspending and terminating the execution process: suspending the execution means temporarily pausing it and resuming it later; terminating the execution means concluding a phase and retaining the possibility of resuming it; and terminating the execution means that the process is over, with different remedial paths. Secondly, whether the grounds for suspending the execution are valid, especially whether the objections of third parties are genuinely justified and whether the settlement agreement is truly implemented. Thirdly, whether control measures such as seizure and freezing can continue to be taken during the suspension period, and whether the seizure and freezing measures can be renewed after their expiration. When handling similar cases in the Beijing area, the court usually requires the applicant for enforcement to provide sufficient evidence on the grounds for suspending the execution and pay attention to whether the seizure and freezing period has expired. For the path of creditor's rights realization, please refer to the relevant provisions.Legal services for creditor-debtor relations and enforcement cases.
III. Professional analysis by Henglue Law Firm
After the execution process is temporarily suspended, the real breakthrough point is often the reconstruction of the responsible subject and property clues. Taking a shareholder's liability dispute for damaging the interests of the company's creditors represented by Attorney Yuan Hang of our firm as an example: Ma * and A Company had a dispute over an intermediary contract. After the Beijing Chaoyang District People's Court ruled that A Company should return the intermediary service fee of 423,500 yuan, A Company appealed and then withdrew the appeal automatically. After the judgment took effect, A Company failed to perform its obligations, and Ma * applied for enforcement. However, because A Company had no property available for enforcement, the court ruled to terminate the current enforcement. Ma * then entrusted Beijing Henglu Law Firm to handle the case.Yuan HangThe lawyer continued to pursue the case. By checking the industrial and commercial archives, the lawyer found that Liu * of Company A subscribed to a capital contribution of 9 million yuan, and Zhang * subscribed to a capital contribution of 1 million yuan, with the subscription period ending on September 23, 2039. There were no records of actual payment in the archives. The shareholders claimed that they were entitled to the time-limited benefits according to law, and that the company's debts were unrelated to the unpaid capital contributions. Based on the "Memorandum of the National Court's Civil and Commercial Trial Work Conference" and relevant judicial interpretations of the Company Law, the lawyer argued that: Company A, as the debtor, had exhausted all means of enforcement and had no assets, thus meeting the conditions for bankruptcy but failing to apply for bankruptcy. The shareholders were no longer entitled to the time-limited benefits, and the capital contributions should be accelerated to maturity. Therefore, the lawyer initiated a lawsuit for shareholders' liability for harming the company's creditors' interests. The court adopted the lawyer's opinion, determining that Company A was unable to repay its due debts and clearly lacked the ability to repay, and that it met the conditions for bankruptcy but failed to apply for bankruptcy. The court ruled that Liu * should bear supplementary compensation liability for the company's debts determined by the effective judgment within the scope of the unpaid 9 million yuan, and Zhang * should bear supplementary compensation liability for the company's debts determined by the effective judgment within the scope of the unpaid 1 million yuan. This case shows that even if the case is subject to the "Terminal Enforcement of Debts" program, it does not mean that the creditor's rights are lost. The creditor can still pursue the shareholders' liability separately. This case was handled by Beijing Henglu Law Firm. 律师继续追索。通过调取工商档案,律师发现A公司股东刘某认缴出资900万元,张某认缴出资100万元,认缴期限均至2039年9月23日,档案中无实缴记录;股东主张依法享有期限利益,公司债务与未到期出资无关。律师依据《全国法院民商事审判工作会议纪要》及公司法相关司法解释主张:A公司作为被执行人,经穷尽执行无财产,已具备破产原因但不申请破产,股东不再享有期限利益,出资应加速到期,遂提起股东损害公司债权人利益责任纠纷之诉。法院采纳律师意见,认定A公司不能清偿到期债务且明显缺乏清偿能力、具备破产原因但未申请破产,判决刘某在未出资900万元范围内、张某在未出资100万元范围内,承担A公司债务的补充赔偿责任。本案说明,案件即使被终本,也不等于债权落空,可另行主张股东责任。本案由北京恒略律师事务所代理。Yuan HangThe attorney (practice license number: 11101202110286151, subject to the document issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
The legal basis is Article 263 of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022) (circumstances of suspension of enforcement); Article 264 (circumstances of termination of enforcement); Article 265 (the ruling on suspension and termination of enforcement shall take effect immediately after it is served on the parties); Article 19 of the Enterprise Bankruptcy Law of the People's Republic of China (implemented on June 1, 2007) (after the people's court accepts the bankruptcy application, the enforcement procedures related to the debtor's property shall be suspended); Article 464 of the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China (Law Interpretation [2022] No. 11) (if the parties reach a settlement agreement and request to suspend enforcement, the people's court may rule to suspend enforcement); and the provisions on suspension and resumption of enforcement in the "Regulations on Several Issues Concerning the Enforcement Work of the People's Courts (Trial Implementation)" (implemented on July 18, 1998 and amended on December 29, 2020). Practical suggestions: Keep an eye on the time limit for seizure and freezing and apply for renewal in time; the settlement agreement should stipulate guarantee or accelerated maturity clauses in case of default; immediately submit an application for resumption of enforcement and attach new clues to the property after the circumstances of suspension disappear. For adding shareholders or related entities, you can combine it with the following measures:Legal services for corporate commercial and contract disputesWe will promote them simultaneously.
5. Henglu Law Firm's Reminder
Suspending enforcement does not mean that the creditor's rights will be lost, but passively waiting may easily lead to the transfer of property and the failure of control measures. After receiving the suspension ruling, the creditor should immediately determine the type and cause of the suspension, check the expiration date of the seizure and freezing orders, and track the performance of the settlement agreement. Once the debtor is found to have new assets or the cause of the suspension disappears, the creditor should promptly apply for the resumption of enforcement. For companies with no assets available for enforcement, the creditor can turn to investigating clues such as the actual payment of shareholders, related-party transactions, and accounts receivable. The enforcement process is highly professional and subject to strict time limits. It is recommended to engage a lawyer to follow up as soon as possible. For a comprehensive solution, please refer to the following document:Special services and legal services for other cases.
VI. Frequently Asked Questions
Q1: The case has been suspended, can my creditor's rights still be realized?
Yes, suspension is just a temporary pause. According to Article 263 of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022), the execution should be resumed after the circumstances of suspension disappear, and the creditor's rights themselves will not be extinguished due to suspension. Whether the creditor can ultimately be compensated depends on whether the debtor has executable assets and whether there are additional liable parties. In practice, after suspension or termination of the execution, the following approaches can still be taken to advance the process: providing the court with new clues to assets such as real estate, vehicles, equity, and accounts receivable; applying for an investigation into the debtor's property report; claiming accelerated maturity of the unpaid capital contributions from shareholders and requiring them to bear supplementary compensation liabilities within the unpaid scope; and claiming revocation or additional liability against those who maliciously transfer assets. It is crucial not to give up follow-up efforts just because of suspension.
Q2: What evidence is required if an application for resuming enforcement or a claim for terminating the enforcement is deemed unfounded?
Organize the evidence around two points. First, property clues: ownership registration of real estate and vehicles, bank account and payment account transactions, equity and dividend information, external accounts receivable contracts and settlement documents, lease of business premises and industrial and commercial information, etc. The more specific the clues are, the easier it is for the court to investigate and verify them within seven days. Second, procedural and liability evidence: the original of the stay order and the settlement agreement, records of the other party's failure to perform the settlement, the debtor's industrial and commercial archives and investment information, transfer vouchers and time points of the property transfer. In the case of objections from third parties, counter-evidence should also be submitted regarding the ownership of the subject matter and the authenticity of the transaction. Submitting the materials in chronological order after they are compiled is more conducive to resuming enforcement or adding liability subjects.
Q3: How much does it cost to hire a lawyer to handle a litigation case?
The execution stage is generally charged on a per-case or a percentage of the subject matter value basis. A common practice is to quote prices in stages: investigating property clues, applying for resumption of enforcement, adding additional parties to the enforcement, and filing lawsuits in separate cases are charged separately. The attorney's fees are determined by the client and the law firm through negotiation and written into the written entrustment contract, with no nationwide standard pricing. The application fees for enforcement cases are borne by the party against whom enforcement is sought and do not require the applicant to make an advance payment (in accordance with the relevant provisions of the "Measures for the Payment of Litigation Costs"). If new cases such as lawsuits alleging that shareholders have harmed the interests of company creditors are filed separately, acceptance fees must be paid according to the subject matter value of the lawsuit. It is recommended to clarify the charging stages, whether travel and inquiry fees are included, and to evaluate the likelihood of recovering payments before entrusting the case.
Q4: How long will it take to resume the execution after it is suspended, and how long will it take to receive the money?
There is no fixed waiting period for resuming enforcement. The key is to see when the grounds for suspension disappear: if the settlement agreement is fulfilled or the other party breaches the contract, you can apply for resumption immediately; if you are waiting for the heirs or the successors of rights and obligations to be determined, you need to wait until the subject is clear; for suspension in bankruptcy proceedings, you need to wait until the bankruptcy proceedings proceed. After the case of resuming enforcement is registered, the court will restart the investigation and disposition. The repayment cycle depends on whether the property is easy to liquidate, whether there is a waiting list for seizure, and whether an evaluation and auction is needed. In practice, it often takes several months from resuming enforcement to actual repayment, and it will take even longer if it involves the disposition of real estate or an evaluation and auction. It is recommended to simultaneously advance property preservation and negotiation to shorten the repayment chain.
Q5: What should I do specifically after receiving the ruling to suspend the execution of the judgment?
It is recommended to follow four steps: First, check the grounds for suspension and legal basis stated in the ruling to determine whether it is a suspension of enforcement or termination of this enforcement, and clarify the relief path in this article; Second, verify the expiration time of existing seizure, freezing, and attachment measures, and apply to the court for renewal of control in a timely manner; Third, organize counter-evidence or reminders for situations such as third-party objections and settlement performance, and, if necessary, apply for an investigation into the property reporting situation of the debtor; Fourth, continuously collect clues about the debtor's property and liabilities, and, when conditions permit, apply for resumption of enforcement, add unpaid shareholders, or file a separate lawsuit. Throughout the process, keep the delivery receipts and communication records, assert rights on schedule, and avoid property loss due to delay.
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 Lawyers about specific 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. →\nLegal 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 public 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.