Supreme court puts tough restrictions on defaulters
Print Edition
People who fail to fulfil court orders will face travel, financial and employment restrictions, the Supreme People’s Court said yesterday in Beijing.
The court admitted the number of defaulters is rising rapidly with about 70 percent failing to fulfil court judgements willingly, said Jiang Bixin, the court’s vice president.
“This harms the legal interests of obligees while it also damages social morals and trust among people,” he said.
The court signed a memorandum with six central government departments and China Railway Corporation to impose harsher restrictions on defaulters, Jiang said.
Such individuals will be banned from flying or traveling in upper-class sleeper train compartments. They will also not be allowed to serve as a legal representative, member of a board, member of the board of supervisors or senior executive at any company, Jiang said.
Defaulters will also face constraints when applying for a loan or credit card.
The legal representative, chief executive and others directly responsible for failing to meet a company’s obligation will be subject to the same restrictions as individual defaulters, Jiang added.
As of Wednesday, there were 46,500 individuals and 9,400 corporations on the court’s list of defaulters.
The court will work with police and the regulators of various industries to crack down on the number of defaulters, Jiang said.
The Ministry of Public Security, State-owned Assets Supervision and Administration Commission, State Administration for Industry & Commerce, China Banking Regulatory Commission, Civil Aviation Administration and the general office of Central Commission for Guiding Ethic and Cultural Progress all signed the memorandum.
The court will update the list of defaulters regularly so all departments can implement restrictive measures accordingly.
Police will check the identification of defaulters for courts and other regulatory agencies.
The SASAC and CAA will montior the country’s four state-owned airlines to ensure defaulters are prevented from booking tickets.
China Railway Corporation will work to stop these individuals from booking upper-class sleeper compartments.
The SAIC will make sure its local branches access the court provided list and stop defaulters from taking banned posts. In China, such employment information is required to be registered at SAIC offices.
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