Conservatory Measures

Judicial Execution

Applications must be submitted through the relevant court or the administering arbitration commission. Once a court approves the request for conservatory measures, judges issue execution notices to banks, real estate registries, or local company registers. These authorities must immediately freeze the specified assets or lock the shares of the target enterprise.

The administrative process typically takes less than forty-eight hours in urgent situations.

Financial Obligation

Claimants must provide a counter-security to cover any potential damages caused by an unjustified freeze. This financial security often takes the form of a cash deposit, a bank guarantee, or a litigation preservation insurance policy issued by a licensed domestic insurance company. If the court later finds that the application for conservatory measures was groundless and caused financial loss to the respondent, the defendant can claim compensation directly from this security.

The value of the counter-security usually corresponds to the amount of assets being frozen, though judges have the discretion to adjust this proportion. This requirement prevents abuse of the system by aggressive litigants.

Procedural Recourse

Challenging a preservation order involves a specialized review process. The affected party can file an objection with the same court to demand the release or reduction of the conservatory measures. If the court rejects the objection, the party has the right to apply for reconsideration by a higher court.

This avenue ensures that errors in the asset valuation can be corrected.