Supreme People's Court

Provisions on Several Issues Concerning Suspected Economic Crimes in the Trial of Economic Dispute Cases

(2021.1.1)

(Adopted at the 974th meeting of the Judicial Committee of the Supreme People's Court on April 9, 1998, Amended in accordance with the "Decision of the Supreme People's Court on Amending 27 Civil Judicial Interpretations of the Supreme People's Court on Several Issues Concerning the Application of the Trade Union Law of the People's Republic of China in Civil Trial Work" adopted at the 1823rd Meeting of the Judicial Committee of the Supreme People's Court on December 23, 2020)

In accordance with the Civil Code of the People's Republic of China, the Criminal Law of the People's Republic of China, the Civil Procedure Law of the People's Republic of China, the Criminal Procedure Law of the People's Republic of China and other relevant provisions, the following provisions are made on the suspicion of economic crimes in the trial of economic dispute cases:
 

Article 1 Where the same natural person, legal person or unjuridical organization is involved in economic disputes and suspected economic crimes respectively due to different legal facts, the cases of economic disputes and suspected economic crimes shall be tried separately.
 

Article 2 Where the persons directly in charge and other persons directly responsible of a unit sign economic contracts with foreign countries by fraudulent means for the purpose of defrauding property by the unit, and the property fraudulently possessed, used or disposed of by the unit constitutes a crime, in addition to investigating the relevant persons for criminal responsibility according to law and ordering the unit to return the property fraudulently obtained, if economic losses have been caused to the victims, The unit shall bear the liability for compensation.

Article 3 Where the person directly in charge of a unit and other persons directly responsible sign an economic contract in the name of the unit and take part or all of the property acquired as their own and constitute a crime, in addition to investigating the perpetrator for criminal responsibility according to law, the unit shall bear civil liability for the consequences caused by the conclusion or performance of the economic contract by the perpetrator according to law.

Article 4 Where an individual signs an economic contract in the name of the lending unit by borrowing a business introduction letter, a special seal for a contract or a blank contract with an official seal from a unit, fraudulates property for personal possession, use, disposition or other criminal activities, causing economic losses to the other party and constituting a crime, in addition to investigating the borrower for criminal responsibility according to law, A unit that lends a business introduction letter, a special seal for a contract or a blank contract with an official seal shall be liable for compensation according to law. However, except where there is evidence to prove that the victim signed the contract with the other party knowing that the contract was borrowed.

Article 5 Where a perpetrator steals or misuses the official seal, business introduction letter, blank contract with the official seal of the unit, or inscribes the official seal of the unit to sign an economic contract, fraudulens property for personal possession, use, disposition or commits other criminal activities, and constitutes a crime, the unit shall not bear civil liability for the economic losses caused by the perpetrator's criminal acts.
 

Where the perpetrator commits a crime by carving the official seal of the unit or by arbitrarily using the official seal of the unit, a letter of introduction for business, or a blank contract with the official seal to sign an economic contract, the unit is obviously at fault and there is a causal relationship between the wrongful act and the economic loss of the victim, the unit shall be liable for compensation for the economic loss caused by the criminal act according to law.

Article 6 After the expiration of the contract or lease operation contract of an enterprise, the enterprise has registered the change of its legal representative in accordance with the provisions, but the enterprise legal person fails to take effective measures to withdraw its official seal, business introduction letter, blank contract with official seal, or fails to take timely measures to notify the counterpart. If the contractor or the lessee of the original enterprise is able to sign an economic contract in the name of the original contract or the leasing enterprise, defrauding property and taking it for himself constitutes a crime, the enterprise shall be liable for compensation for the economic losses of the victims according to law. However, if the original contractor or lessee signs an economic contract in the name of the original contractor or leasing enterprise by using the official seal, business introduction letter or blank contract sealed with the official seal retained without authorization, and if it constitutes a crime, the enterprise generally does not bear civil liability.

After the employee employed by the unit is dismissed, or the person entrusted by the unit to keep the official seal is discharged, the unit fails to recover its official seal in time, and the perpetrator arbitrarily uses the retained official seal of the original unit to sign an economic contract, defrauding property and taking it for himself constitutes a crime. If economic losses are caused to the victims, the unit shall be liable for compensation.

Article 7 The persons directly in charge of the unit and other persons directly responsible for the unit sell the property obtained from the unit's smuggling or other criminal activities by means of signing an economic contract, if the buyer knows or should know, if economic losses are caused thereby, the losses shall be borne by the buyer. However, if the buyer does not know that the subject matter of the economic contract is property derived from a criminal act and purchases it, the seller shall bear civil liability for the economic losses caused by the buyer.

Article 8 In accordance with the provisions of Article 101, paragraph 1, of the Criminal Procedure Law of the People's Republic of China, where a victim or his legal representative or close relative has caused economic losses as a result of a unit's criminal act in Article 2 of these provisions, an incidental civil action is brought against a defendant who has failed to return his property and suffered economic losses as a result of failing to do so in Article 4, Article 5, paragraph 1, or Article 6. The people's court accepting criminal cases shall try them together according to law. The victim or his legal representative or close relatives shall also have the right to file a separate civil lawsuit against the unit for economic losses suffered by the victim. If the victim or his legal representative or close relatives file another civil lawsuit, the people's court with jurisdiction shall accept it according to law.

Article 9 The limitation of litigation for victims to request protection of their civil rights shall be suspended during the investigation and investigation of economic crime suspects by public security organs and procuratorial organs. If the public security organ decides to withdraw the suspected economic crime case or the procuratorial organ decides not to prosecute, the limitation of action shall be recalculated from the day after the withdrawal of the case or the decision not to prosecute.

Article 10 In the trial of an economic dispute case, the people's court finds that the suspected clues and materials of an economic crime are involved in the case but are not in the same legal relationship with the case, shall transfer the suspected clues and materials to the relevant public security organ or procuratorial organ for investigation and investigation, and the economic dispute case shall continue to be tried.

Article 11 If a people's court accepts a case as an economic dispute and finds that it is not an economic dispute case and there is suspicion of an economic crime, it shall rule to reject the prosecution and transfer the relevant materials to the public security organ or procuratorial organ.

Article 12 Where a people's court has filed an economic dispute case for trial, and the public security organ or procuratorial organ considers that there are suspects of economic crimes, and explains the reasons and attaches relevant materials to a letter to the people's court accepting the case, the people's court concerned shall seriously examine it. After examination, it is found that there is indeed a suspicion of economic crime, the case shall be transferred to the public security organ or procuratorial organ, and the party concerned shall be notified in writing to return the case handling fee; If it is considered that the case is indeed an economic dispute, it shall continue to hear the case according to law, and inform the relevant public security organs or procuratorial organs of the result by letter.

Revised Provisions of the Supreme People's Court on Several Issues Concerning Suspected Economic Crimes in the Trial of Economic Dispute Cases

1. Revise the introduction to read:
"In accordance with the Civil Code of the People's Republic of China, the Criminal Law of the People's Republic of China, the Civil Procedure Law of the People's Republic of China, the Criminal Procedure Law of the People's Republic of China and other relevant provisions, the following provisions are made on the trial of economic dispute cases involving suspected economic crimes:"

2. Amend Article 1 as follows:
"Where the same natural person, legal person or unincorporated organization is involved in economic disputes and suspected economic crimes respectively due to different legal facts, the cases of economic disputes and suspected economic crimes shall be tried separately."

3. Amend Article 8 as follows:
"In accordance with the provisions of Article 101, paragraph 1, of the Criminal Procedure Law of the People's Republic of China, where a victim or his legal representative or close relative has caused economic losses as a result of a unit's criminal act in Article 2 of these provisions, an incidental civil action is brought against a defendant who has failed to return his property and suffered economic losses as a result of failing to do so in Article 4, Article 5, paragraph 1, or Article 6. The people's court accepting criminal cases shall try them together according to law. The victim or his legal representative or close relatives shall also have the right to file a separate civil lawsuit against the unit for economic losses suffered by the victim. If the victim or his legal representative or close relatives file another civil lawsuit, the people's court with jurisdiction shall accept it according to law."