Meaning
Temporary judicial orders provide immediate relief to a party while a legal dispute is still being resolved. Obtaining interim measures is often the first step in commercial litigation to prevent a counterparty from disposing of assets or destroying evidence. These orders bridge the gap between the filing of a case and the final determination of the court.
Preservation Power
Judges have the authority to freeze bank accounts, seal warehouses, seize records and prohibit the transfer of intellectual property. An application for interim measures must demonstrate that the applicant will suffer irreparable harm without immediate court intervention. The court typically rules on such applications within forty eight hours in cases of extreme urgency.
Financial Guarantee
Plaintiffs are required to provide a security bond to cover potential losses to the defendant if the order is later lifted. If the application for interim measures is found to be wrongful, the defendant uses this bond to recover business losses. Acceptable forms of security include cash, bank guarantees or property deeds.
Enforcement Action
Local enforcement officers carry out the specific commands of the court immediately upon the issuance of the order. While interim measures are temporary, they remain in effect until the case is concluded or the judge issues a separate order to cancel them. Non compliance with these orders leads to fines or the detention of the legal representative of the company.
The effectiveness of this mechanism depends on the speed at which the court can identify and secure the relevant assets across different provinces.
