Decision of the Supreme People's Court on Revising the Several Provisions of the Supreme People's Court on Restricting Extravagant Spending of Persons Subject to Enforcement

Fa Shi [2015] No.17

July 20, 2015

The Decision of the Supreme People's Court on Revising the Several Provisions of the Supreme People's Court on Restricting Extravagant Spending of Persons Subject to Enforcement, which was adopted at the 1657th Session of the Judicial Committee of the Supreme People's Court on July 6, 2015, is hereby promulgated and shall come into force as of July 22, 2015.

Decision of the Supreme People's Court on Revising the Several Provisions of the Supreme People's Court on Restricting Extravagant Spending of Persons Subject to Enforcement

(Adopted at the 1657th Session of the Judicial Committee of the Supreme People's Court on July 6, 2015)

In accordance with the decision of the 1657th Session of the Judicial Committee of the Supreme People's Court, the revisions to the Several Provisions of the Supreme People's Court on Restricting Extravagant Spending of Persons Subject to Enforcement are as follows:

I. The Several Provisions of the Supreme People's Court on Restricting Extravagant Spending of Persons Subject to Enforcement is revised to read: the "Several Provisions of the Supreme People's Court on Restricting Extravagant Spending and the Relevant Consumption of Persons Subject to Enforcement".

II. Article 1 is revised to read: "If a person subject to enforcement fails to fulfill the payment obligations determined in the effective legal documents within the term prescribed in the enforcement notice, the people's court may adopt restrictive consumption measures to restrict the extravagant spending and the relevant consumption that is not necessary in either daily life or business operation."
One paragraph is added to Article 1 as Paragraph 2, which reads: "The people's courts shall adopt measures restricting consumption against the persons subject to enforcement who are included in the list of dishonest person subject to enforcement."

III. Article 2 is revised to read: "Where a people's court decides to adopt measures restricting consumption, it shall take into account factors such as the existence of acts that the person subject to enforcement has been passive in performing the obligations or has evaded or resisted the enforcement, and the performance ability of the person subject to enforcement."

IV. Paragraph 1 of Article 3 is revised to read: "If the person subject to enforcement is a natural person, and is subject to measures restricting consumption, he shall not conduct the following acts of extravagant spending and consumption that is not necessary in either daily life or work."
Item 9, Paragraph 1 of Article 3 is revised to read: "9. taking a seat of any type on a 'G' high-speed train, first-class seat or above on a high-speed train, and any other act of consumption that is not necessary in either daily life or work."
Paragraph 2 of Article 3 is revised to read: "If the person subject to enforcement is an organization, and is subject to measures restricting consumption, such person subject to enforcement and its legal representative, the main principals, the persons directly liable who may affect the performance relating to the debts and the actual controller shall not implement any act as specified in the preceding paragraph. For any of the acts as specified in the preceding paragraph to be conducted with personal property for private consumption, an application may be filed to the enforcement court. The enforcement court shall grant permission if the application is verified to be true upon examination."

V. Article 4 is revised to read: "Measures restricting consumption are generally determined by a people's court upon examination based on the written application filed by an applicant for the enforcement, and may be decided by the people's court according to its functions and powers when necessary."

VI. Article 5 is revised to read: "Where a people's court decides to take any measure restricting consumption, it shall issue a consumption restriction order to the person subject to enforcement. The consumption restriction order shall be issued by the president of the people's court. It shall specify the term, the items, and the legal consequences, and other contents relating to the consumption restriction."

VII. Article 6 is revised to read: "Where a people's court decides to take any measure restricting consumption, it may, depending on the needs of the case and the information of the person subject to enforcement, serve the notice on assistance with enforcement on the entities under the obligation to assist with the investigation and enforcement, and may also make a public announcement on the relevant media."

VIII. Article 7 is revised to read: "The expenses arising from the public announcement on the consumption restriction order shall be borne by the person subject to enforcement. If the applicant for the enforcement applies for making an announcement on the media, such applicant shall advance the payment for the expenses of the announcement."

IX. Article 8 is revised to read: "If a person subject to enforcement restricted from the consumption conducts any of the consumption activities prohibited herein due to its/his daily life or business operation, it/he shall file an application with the people's court and may do so upon approval."

X. Article 9 is revised to read: "During the period of the consumption restriction period, if a person subject to enforcement provides an effective guarantee or subject to the consent of the applicant for the enforcement, the people's court may lift the consumption restriction order. After the person subject to enforcement has fulfilled all the obligations as determined in the effective legal documents, the people's court shall, within the scope of notice or announcement prescribed in Article 6 of the Provisions, promptly lift the consumption restriction order with a notice or public announcement."

XI. Article 10 is revised to read: "A people's court shall set a reporting line or mail box to receive the reports from the applicant for the enforcement or the public regarding the violation of Article 3 of the Provisions by the person subject to enforcement restricted from the consumption, and shall examine and identify those reports."

XII. Paragraph 1 of Article 11 is revised to read: "Any act that the person subject to enforcement conducts the consumption in violation of the consumption restriction order shall be deemed as a refusal to fulfill the legally effective judgment or ruling made by a people's court, and if such act is ascertained to be true, detention or fines shall be imposed in accordance with Article 111 of the Civil Procedure Law of the People's Republic of China. If the case is of a grave circumstance and constitutes a crime, criminal liabilities shall be pursued."
Paragraph 2 of Article 11 is revised to read: "If any relevant organization, after receipt of the notice on assistance with enforcement issued by the people's court, continue to permit the extravagant spending activities and consumption that is not necessary in either daily life or business operation by the person subject to enforcement, the people's court may pursue its legal liabilities in accordance with the provisions of Article 114 of the Civil Procedure Law of the People's Republic of China."

XIII. Article 12 is deleted.
In accordance with the Decision of the Supreme People's Court on Revising the Several Provisions of the Supreme People's Court on Restricting Extravagant Spending of Persons Subject to Enforcement, the Several Provisions of the Supreme People's Court on Restricting Extravagant Spending of Persons Subject to Enforcement will be revised accordingly and then re-promulgated.