Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ord

The Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645) (the “Ordinance”) and its Rules were enacted on 29 January 2024.

This legislation provides a mechanism for recognition and enforcement of judgments between PRC and Hong Kong. Under the Ordinance, a wider scope of judgments given by the Courts in the PRC can be enforced in Hong Kong and vice versa, subject to conditions and procedures.

Applicability:

The Ordinance is applicable to judgments given on or after the commencement date of the Ordinance (i.e. 29 January 2024). Judgments from most civil and commercial matters, including those related to contract, tort, property rights and intellectual property disputes are covered under the Ordinance. However, judgments related to criminal or administrative matters or matters contrary to public policy are excluded from the scope of the Ordinance.

Procedure for registration and enforcement of China Judgments in Hong Kong:

A judgment creditor under a qualifying PRC judgment within the 2-year limitation period may apply, ex parte, by way of an Originating Summons supported by an affidavit to the Court for a registration order.
Upon making the registration order, the applicant shall serve a notice of registration on all persons against whom the judgment may be enforced.
Such person may make an application to set aside the registration within 14 days after service of the notice of registration.
After the expiry period for making any application to set aside the application or after such application has been disposed of, an action to enforce the registered judgment may then be taken.

Key Changes:

The key changes of the Ordinance from the previous ordinance in place, i.e. the Mainland Judgments (Reciprocal Enforcement) Ordinance (Cap. 597) (the “Old Ordinance”) are summarised as follows:

Removal of exclusive jurisdiction requirement

The Old Ordinance required parties to have agreed to the exclusive jurisdiction of a PRC or Hong Kong court to enforce PRC judgments in Hong Kong. Under the Ordinance, there is no such requirement; instead, it is enough to establish a connection with PRC or Hong Kong at the time when the proceedings were brought.

Expanded scope and categories of enforceable PRC judgments

Previously, under the Old Ordinance, only judgments for contractual disputes were applicable for recognition and enforcement. However, under the Ordinance, judgments arising from other matters not limited to contractual disputes such as judgments which are criminal in nature but contain an order for payment of money in respect of compensation and damages are also included.

Though, the Ordinance still excludes judgments given in respect of matrimonial and family cases, succession, certain intellectual property and maritime cases, administration or distribution of estate cases, corporate insolvency or bankruptcy cases etc.

Expansion of remedies

Under the Old Ordinance, only judgments for monetary relief were covered. However, under the Ordinance, the categories of relief have been extended to cover both monetary and non-monetary reliefs, such as injunctions or specific order etc.

Expansion of Courts

The Ordinance also broadens the range of Courts and tribunals acceptable for recognition and enforcement. In relation to Hong Kong, judgments issued by the Competition Tribunal, Labour Tribunal and Lands Tribunal are accepted. In relation to PRC, judgments from the Primary People’s Court will no longer be limited to those courts specifically designated.

Conclusion

The new legislation enhances the certainty and predictability of enforceability of judgments, reducing the need for re-litigation of the same disputes in both places and enables easier enforcement of cross-border rulings, offering better protection of parties’ interests and saving costs. Going forward, we anticipate the enforcement and recognition of PRC and Hong Kong judgments will be more efficient following the implementation of the Ordinance.

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