Meaning
Emergency judicial remedies allow companies to secure bank accounts of an opposing party during disputes over unauthorized or falsified transactions. Seeking a fraudulent seal asset preservation freeze prevents the transfer of disputed funds while a court determines the validity of the contract. This process protects the victimized factory from losing their cash to a dishonest counterparty.
Emergency Remedy
Litigants must act quickly to submit this application to the court before the counterparty can empty their accounts. This urgency is the reason for applying a fraudulent seal asset preservation freeze.
Procedural Pathway
The applicant must provide a guarantee, such as a cash deposit or a litigation insurance policy, to cover potential damages to the other party if the freeze is later found to be wrongful. Once the court accepts the application, it issues a ruling and instructs the bank to block the specified amount. This block remains in place for up to twelve months unless extended by the judge.
This provides a secure window during which the company can prove that the signature was forged.
Asset Protection
Securing the funds early prevents the defendant from declaring bankruptcy or hiding their assets. This measure ensures that any subsequent court victory can be enforced.
