Gore Group Co., Ltd. v. Jiangsu Textile Industry (Group) Import & Export Co., Ltd. Case concerning Application for Recognizing and Enforcing the Foreign Civil Judgment

Determining the Relationship of Reciprocity between China and Singapore and Recognizing and Enforcing the Commercial Judgment as Rendered by the Singaporean Court for the First Time
--Case concerning Application of Gore Group Co., Ltd. for Recognizing and Enforcing the Civil Judgment as Rendered by the High Court of Singapore

[Basic Facts]
Gore Group was a limited liability company established in Switzerland. In June 2016, it filed an application with the Intermediate People's Court of Nanjing City, Jiangsu Province and alleged that it and Jiangsu Textile Industry (Group) Import & Export Co., Ltd. (hereinafter referred to as “Textile Industry Group”) reached a settlement agreement for dispute arising from a sales contract. Since Textile Industry Group failed to perform the settlement agreement, in accordance with the jurisdiction clauses as stipulated in the settlement agreement, Gore Group filed a lawsuit with the High Court of the Republic of Singapore (hereinafter referred to as the “High Court of Singapore”), which rendered an effective judgment. Since Textile Industry Group and its property were within the territory of China, Gore Group requested the Intermediate People's Court of Nanjing City, Jiangsu Province to recognize and enforce the judgment rendered by the High Court of Singapore. In the opinions, Textile Industry Group stated that there was no provision on mutual recognition and enforcement of court judgments and rulings in the Treaty on Judicial Assistance in Civil and Commercial Matters between the People's Republic of China and the Republic of Singapore. In accordance with the provisions of  HYPERLINK "javascript:ESLC(183386,282)" Article 282 of the  HYPERLINK "javascript:ESLC(183386,0)" Civil Procedure Law of the People's Republic of China, the Intermediate People's Court of Nanjing City should reject the application of Gore Group.
The Intermediate People's Court of Nanjing City, Jiangsu Province found that: Upon legal summon by the High Court of Singapore, Textile Industry Group failed to appear in court. On October 22, 2015, the High Court of Singapore rendered a judgment that Textile Industry Group should pay Gore Group USD350,000 and the interest thereof and other expenses. Textile Industry Group also received the judgment. In January 2014, the High Court of Singapore once recognized and enforced the civil judgment rendered by the Intermediate People's Court of Suzhou City, Jiangsu Province.

[Adjudication]
The Intermediate People's Court of Nanjing City, Jiangsu Province held that the civil judgment involved was rendered by the High Court of Singapore. China and Singapore did not conclude or jointly participate in any international treaty on mutual recognition and enforcement of effective civil and commercial judgments. However, since the High Court of Singapore once enforced a civil judgment rendered by a Chinese court, according to the principle of reciprocity, the Chinese court may recognize and enforce qualified civil judgments rendered by the Singaporean court. It was found upon examination that the judgment involved did not violate the fundamental principles of the Chinese laws or the state sovereignty, security, and public interests. Therefore, in accordance with the provisions of  HYPERLINK "javascript:ESLC(183386,282)" Article 282 of the  HYPERLINK "javascript:ESLC(183386,0)" Civil Procedure Law of the People's Republic of China, on December 9, 2016, the Intermediate People's Court of Nanjing City ruled to recognize and enforce the civil judgment (No. 013 [2016], High Court, Singapore) as rendered by the High Court of Singapore on October 22, 2015.

[Significance]
In this case, the Chinese court recognized and enforced the commercial judgment as rendered by the Singaporean court for the first time.  HYPERLINK "javascript:ESLC(183386,282)" Article 282 of the  HYPERLINK "javascript:ESLC(183386,0)" Civil Procedure Law of the People's Republic of China stipulated that the basis for recognizing and enforcing a judgment rendered by a foreign court was an international treaty or the principle of reciprocity. At present, China has concluded treaties on judicial assistance in mutual recognition and enforcement of civil and commercial judgments with less than one third of countries along the “Belt and Road.” Therefore, the determination of whether there is relationship of reciprocity between both countries is crucial to whether the commercial judgments as rendered by the courts of countries along the “Belt and Road” can be recognized and enforced by the Chinese court. According to the precedent where the Singaporean court recognized and enforced the judgment rendered by the Chinese court, the judgment of this case determined that there was relationship of reciprocity between China and Singapore for the first time and according to the principle of reciprocity, the Chinese court recognized and enforced the commercial judgment as rendered by the Singaporean court. The practice of the Chinese court is a landmark in the mutual recognition and enforcement of commercial judgments as rendered by the Chinese and Singaporean courts and will greatly promote the judicial cooperation practice among countries along the “Belt and Road” in the recognition and enforcement of civil and commercial judgments.