Pre Litigation Asset Freezing Orders under Chinese Procedure
Pre-litigation asset freezing under PRC procedure secures respondent assets within forty-eight hours provided equivalent financial collateral is posted.
Preliminary Relief PRC Courts
Meaning
Provisional measures available to litigants in the People’s Republic of China allow for the preservation of assets or evidence before a final judgment. The preliminary relief prc courts provide is intended to prevent a defendant from hiding property or destroying documents during a legal dispute. These orders are issued by a judge and are enforceable by the court police.
Asset Seizure
Bank accounts and physical property can be frozen to ensure that funds are available if the plaintiff wins the case. Seeking preliminary relief prc courts requires the applicant to show that the assets are at risk of being moved or sold. This measure is commonly used in contract disputes involving large sums of money.
Evidence Security
Inspections of a factory or office can be conducted without notice to secure hard drives or paper files. Under the system of preliminary relief prc courts, the judge can authorize the seizure of specific items that are needed to prove a claim. This prevents the loss of information that would otherwise be difficult to recover.
Guarantee Requirement
Applicants must usually provide a bond or a bank guarantee to cover the potential losses of the defendant if the claim is later found to be meritless. The cost of obtaining preliminary relief prc courts depends on the value of the assets being frozen. This financial barrier prevents the misuse of these powerful legal tools for harassment.