Case 8:

Anhui Steamed Rice Food Technology Company and Zhaojiaxin Construction Project Construction Contract Dispute Trial Procedure Supervision Case

Basic Case

Anhui Steamed Rice Food Technology Co., Ltd. (hereinafter referred to as Steamed Rice Food Company) is at the forefront of rural reform in China -Xiaogang Village Industrial Park, Fengyang, Anhui. Zhao Jiaxin filed a lawsuit with the People's Court of Fengyang County on January 9, 2020 due to the dispute over the construction contract of the construction project with Steamed Rice Food Company, requesting that the Steamed Rice Food Company pay 1005996.42 yuan of the project fund and liquidated damages, and apply for the property preservation of the Steamed Rice Food Company. On June 2, 2020, the People's Court of Fengyang County ruled to freeze the bank deposit of 1005996.42 yuan of the steamed rice food company, or seal up or detain other equivalent properties. The bank account deposit of 1005996.42 yuan of the company was frozen. The steamed rice food company filed a counterclaim because of Zhao Jiaxin's engineering quality problems, and considered that the property preservation act of the People's Court of Fengyang County was illegal. It repeatedly reported to the People's Court of Fengyang County, asking for changes to preserve other properties of the company, but the court has not replied.

[Supervision by procuratorial organs]

Acceptance. On June 18, 2020, the company applied to the People's Procuratorate of Fengyang County for supervision. The court accepted the review.

Review and verify. The People's Procuratorate of Fengyang County investigated and verified the case, inquired about the applicant's steamed rice food company, and went to the steamed rice food company on the spot to check the machine equipment and collect the machine equipment invoices. It was found through verification that the steamed rice food company was a key material production enterprise for epidemic prevention and control in Anhui Province. The freezing of the company's account funds by the court seriously affected its normal production and operation. Steamed rice food company is valuable The relatively new grain processing machinery and equipment of 4971230 yuan are enough to achieve the purpose of preservation.

Supervision opinions. Fengyang After examination, the People's Procuratorate of the county considers that The steamed rice food company has bank deposits and machinery and equipment for preservation, and the machinery and equipment are sufficient to achieve the purpose of preservation. The People's Court of Fengyang County chose to preserve bank deposits that have a great impact on the production and operation of enterprises, in violation of the Supreme People's Court's Decision on the Application of Article 157 of the Interpretation of the Civil Procedure Law of the People's Republic of China and Article 13 of the Provisions of the Supreme People's Court on Several Issues Concerning the Handling of Property Preservation Cases by the People's Court, and Article 13 of the Provisions of the Supreme People's Court on Seriously Implementing the Spirit of the Third Meeting of the Central Committee for Comprehensive Rule of Law The provisions of the Notice on Trial Implementation during the Epidemic Situation of COVID-19 Prevention and Control have been conscientiously completed, and there have been acts of property preservation in violation of the provisions. On June 23, 2020, the People's Procuratorate of Fengyang County issued a procuratorial proposal to the People's Court of Fengyang County, suggesting that the freezing of working capital of enterprises should be lifted and enterprises should be selected Machinery and equipment with less impact from production and operation activities shall be preserved.

Monitoring results. After receiving the procuratorial proposal, the People's Court of Fengyang County adopted the opinions of the procuratorial organ On June 29, 2020, a ruling was made to lift the freeze on the company's bank deposits and change it to seal up its machinery, equipment and property provided, but it is allowed to use during the seal up period, thus ensuring the normal production and operation order of the enterprise.

【 typical Meaning]

1. The procuratorial organ shall timely correct the litigation preservation behavior that obviously does not conform to the "proportionality principle", and eliminate the adverse impact on the production and operation of the enterprises involved in the case. Litigation preservation system is an important guarantee for the final realization of the legitimate rights and interests of civil litigants. However, because of its enforceability, the court is liable to damage the interests of one party while protecting the interests of the other party. Therefore, litigation preservation should conform to the principle of proportionality. The principle of litigation preservation proportion requires that the purpose and means of litigation preservation should be basically balanced, and the preservation measures taken should minimize the damage to the respondent on the basis of achieving the purpose of preservation. Timely correction of litigation preservation behavior that obviously does not conform to the principle of proportionality is of great significance to improve the efficiency of enterprise asset use, enhance enterprise vitality, maintain the normal business order of enterprises, and help enterprises resume work and production.

2. Exert procuratorial wisdom to safeguard the legitimate rights and interests of private enterprises with the concept of win-win and win-win. Procuratorial organs should adhere to the preservation supervision of litigation involving private enterprises "Equal protection" is to investigate and verify the purpose, measures, scope and compliance with proportionality requirements of the preservation, so as to ensure that the supervision is based, accurate and effective, and urge the court to take the preservation measures that have the least impact on the enterprise. The handling of the case facilitated the parties to reach a settlement and withdraw the lawsuit, which not only reduced the litigation cost of the enterprise, but also saved judicial resources and realized a win-win situation.