Hong Kong and China: An update on the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Rules

In brief

Further to our previous discussion on the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645) ("RE Ordinance"),1 after a lengthy collaboration between the Mainland judicial authorities and the Hong Kong judiciary for over a year on the detailed mechanism regarding the implementation of the RE Ordinance, the Hong Kong government finally published in the gazette the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Rules ("RE Rules") and the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Commencement) Notice ("Notice") on 10 November 2023.

As per the Notice, the RE Ordinance will come into operation on 29 January 2024. The comprehensive mechanism for reciprocal recognition and enforcement of judgments under the RE Ordinance and RE Rules will soon change the landscape of cross-border enforcement actions.


Contents

Key takeaways

  • Mainland Judgments (as defined in the RE Ordinance) in civil and commercial matters given on or after 29 January 2024 may be registered pursuant to the RE Ordinance and the RE Rules, and then be enforced in Hong Kong. 
  • While a judgment creditor under a Mainland Judgment will have a greater chance of enforcing the judgment in a more efficient manner compared with the old regime, a judgment debtor will, on the other hand, have to consider carefully under the new regime where it can set aside the registration of the Mainland Judgment. The RE Ordinance and the RE Rules will certainly become one of the key regimes of cross-border disputes involving the Mainland and Hong Kong.

In more detail

Pursuant to section 1(2) of the RE Ordinance, the Secretary for Justice issued the Notice that the RE Ordinance will come into operation on 29 January 2024. Under the RE Ordinance, a judgment creditor under a Mainland Judgment (as defined in the RE Ordinance) in civil and commercial matters may seek to enforce the same in Hong Kong by applying to the Hong Kong Court of First Instance (CFI) for an Order to register the Mainland Judgment. The registration system will elevate the certainty and predictability of cross-border enforcement actions.

For the purpose of establishing the detailed procedures of the registration system, the Chief Judge of the High Court made the RE Rules pursuant to Section 35 of the RE Ordinance. In particular, a registration application should be made ex parte to the CFI by originating summons with the support of an affidavit. Except as provided by the RE Rules, the practice and procedure under the Rules of the High Court (Cap. 4) shall apply with necessary modifications in the proceedings under the RE Ordinance.

The RE Rules also set out the detailed requirements for the supporting affidavit in the following circumstances:

  • Mainland Judgment given partly in respect of civil or commercial matters
  • Mainland Judgment prohibiting or restricting performance of acts
  • Mainland Judgment requiring sums of money or acts to be paid or performed (other than in stages)
  • Mainland Judgment requiring sums of money or acts to be paid or performed (in stages)
  • Mainland Judgment given in absence of party at trial
  • Mainland Judgment registered previously

Subsequent to the registration of the Mainland Judgment, the other side may apply to the CFI for an order to set aside the registration within 14 days after the date on which a notice of registration is served on that person. The Court has discretion regarding the conduct of such an application, including extending the aforementioned 14-day time limit, as well as imposing any terms (e.g., on giving security) that the Court considers appropriate and just.


1 Hong Kong and China: The passing of the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Bill dated 2 November 2022.

 


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