Can court limit the franchise license of the enforced party in the Enforcement Procedure to impel the enforced party to perform obligation

【Claimant】 A trading company

【Enforced Party】 A private company

【Background】 A sales contract dispute brought by the claimant and the enforced party before a court, and an adverse judgment was made against the enforced party and the enforced party is ordered to make monetary payments. The enforced party failed to perform this obligation within the specified timeframe, and the claimant petitioned the court to enforce the court judgment. As the enforced party has no enforceable property, the claimant petitioned the court to limit the franchise license of the enforced party, so as to impel the enforced party to perform the obligation.

【Court of the Enforcement Proceeding】 Yes.

【Basis of the Decision】 According to Beijing Superior Court, the franchise license of a company is in nature a special operating qualification which an ordinary business lacks and which can be used by the company as a means of making profit, and it thus has certain property values and should be a type of invisible property right. According to Article 38 of the Regulations of the Supreme Court regarding Several Issues in the Enforcement Activities of the People’s Court (Trial), “Where an enforced party is incapable of making monetary payments, the court has the power to order the attachment or detainment of other properties of the enforced party.” The franchise license of a company is the said “other properties”. If the enforced party fails to perform the obligation specified in the effective judgment, the Court of the Enforcement Proceeding can take mandatory enforcement measures to impel the enforced party to voluntarily perform the obligation.