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Jing Gao Fa Fa No. [2020] 206

Municipal First, Second, Third and Fourth Intermediate People's Courts and Beijing Intellectual Property Court;
District people's courts and Beijing Internet Court;
All related business departments of Beijing High People's Court:

The following circular is hereby issued in accordance with the Enterprise Bankruptcy Law of the People's Republic of China and the Minutes of National Court Bankruptcy Trial Meeting and on the basis of the practical work of bankruptcy trials in Beijing for purposes of establishing an information and resource sharing mechanism, strengthening the coordination and cooperation of Beijing courts' bankruptcy trials and enforcement in such respects as property investigation, control and disposal, and punishment of obstruction in civil proceedings, and enhancing the efficiency of trial of bankruptcy cases.

1. Where the bankruptcy trial department gives a ruling of taking preservation measures against the debtor's property, account books and corporate registration matters, etc. upon the request of the administrator, the enforcement department shall enforce it within 48 hours after the bankruptcy trial department issues the ruling and transfers the case to the case-filing department under the case numbering of "preservation during enforcement".

2. Where the debtor refuses to submit or submits untrue statement of property status, debt inventory, credit inventory, relevant financial and accounting reports, and information on employee wage and social security insurance payments to the people's court, the debtor's legal representative, financial management personnel, de facto controller, shareholders, directors, supervisors or other business management personnel who are directly liable shall be fined less than RMB100,000 by the people's court according to law.

Where the above-mentioned persons refuse to hand over property, seals, account books, documents and other materials to the administrator, or forge/destroy the property evidence which leads to unclear property status, those directly liable shall be fined less than RMB100,000 by the people's court according to law.

The decision to impose a fine shall be made by the bankruptcy trial department. The court's enforcement department shall enforce it if the relevant responsible persons do not pay the fine within the time limit.

Where the debtor delays or refuses to hand over what is required to the administrator on the grounds that he has not prepared a complete account book or lost the account book in the course of operation, which affects the bankruptcy proceedings, the bankruptcy trial department may, in accordance with the relevant provisions of the Accounting Law of the People's Republic of China, suggest the financial department pursue the legal responsibility of those directly liable.

3. Where the administrator applies to the people's court for removing the preservation measures taken against the debtor's property, it shall submit an application, a ruling for accepting bankruptcy application, a decision to designate the administrator and a power of attorney for the administrator.

Where the preservation ruling is made by the trial department, the trial department shall decide to remove the preservation within five days after receiving the above materials, and send it to the enforcement department for execution.

Where the enforcement department takes seal-up, seizure or freezing measures against the debtor's property during the execution of the case, it shall terminate such measures within fifteen days after receiving the above materials; or, at the request of the bankruptcy trial department, issue a letter to transfer to the bankruptcy trial department the disposal right including sealing up, seizing and freezing the property.

4. After the bankruptcy case is accepted, the enforcement department shall suspend the judicial disposal procedure against the debtor's property, and the administrator shall take over and dispose of the property; if the administrator requests that the enforcement department continues to launch the judicial disposal procedure, it shall submit a written application to the bankruptcy trial department, and the bankruptcy trial department shall entrust the enforcement department to dispose of the property according to law, while the enforcement department shall cooperate and transfer the proceeds from auction or sale to the administrator in time.

5. The administrator may request the bankruptcy trial department to entrust the enforcement department to judicially dispose of the passenger car with Beijing license plate in the name of the debtor, and the enforcement department shall provide assistance and cooperation. Relevant disposal procedures shall be subject to the Administrative Measures of the Beijing High People's Court for the Judicial Disposal of Passenger Cars with Beijing License Plate (Trial) and the Implementing Rules of the Beijing High People's Court for the Judicial Disposal of Passenger Cars with Beijing License Plate (Trial).

6. The bankruptcy case handling judges shall enter "bankruptcy " cases into the "Trial System" of the National Working Platform of Judges for Enterprise Bankruptcy & Reorganization Cases. After getting approval from their court's leaders on this platform, the bankruptcy case handling judges can inquire the debtors' property and corporate registration information through the Online Enforcement Inquiry and Control System.

In line with the requirement of the Online Enforcement Inquiry and Control System, the bankruptcy trial department shall submit the identity information of the judge hearing the bankruptcy case including his/her name and scanned front and back copies of his/her work certificate to the court's enforcement department; and the Inquiry and Control System's administrator of the court's enforcement department shall put the above information into this system.

7. When a debtor actively applies for bankruptcy, cooperates with the administrator's takeover and hands over all the seals, account books, property and documents, etc., its legal representative, de facto controller and principal shall submit a written application for removing the spending restrictions against them. The administrator and the enforcement applicant shall negotiate, and if the applicant agrees, the above written application shall be transferred by the bankruptcy trial department to the enforcement department. The enforcement department shall remove the restrictions in the Enforcement and Case Handling System within five days after receiving the written application.

This circular shall be implemented upon issuance.

Beijing High People's Court
28 April 2020