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  • Interpretation
  • No.403【Under Translation】
  • Date
  • 1996/05/24
  • Issue
    • Does Article 18, Paragraph 2, of the Compulsory Enforcement Act requiring the debtor to post adequate bond in case of application for suspension of compulsory enforcement violate the constitutional protection of equality?
  • Holding
    •        Compulsory enforcement must be carried out in accordance with executive titles. Once the enforcement process commences, unless otherwise provided by law, the process shall not cease, as provided clearly in Article 4, Paragraph 1, and Article 18, Paragraph 1, of the Compulsory Enforcement Act. Article 18, Paragraph 2, of the same Act provides that under certain circumstances, the court, where the debtor makes an application, after posting adequate bond, can determine by a ruling that the enforcement process be suspended. The bond posted by the debtor pursuant to the ruling serves to guarantee the recovery of damages incurred by the creditor due to the debtor*s application for suspension of the enforcement process. This protects the rights of both the creditor and debtor and does not increase the debtor*s obligations. This is different than a creditor applying for compulsory enforcement which requires an executive title and, hence, we found no conflict with Article 7 of the Constitution.
  • Reasoning
    •        Compulsory enforcement must be carried out in accordance with executive titles. Once the enforcement process commences, unless otherwise provided by law, the process shall not cease until the execution has been fully carried out. It is expressly provided for by Article 4, Paragraph 1, and Article 18, Paragraph 1, of the Compulsory Enforcement Act. However, where a debtor files an application for restitution, appeals or disputes the judgment, requests for continuation of litigation after settlement, files a suit for voiding a mediation, files a suit for cancellation of mediation, or appeals a ruling under Article 4, Paragraph 1, Subparagraph 5, in accordance with executive titles to prevent damages to the debtor from the continuance of the compulsory enforcement process on the one hand, and to ensure that the creditor is compensated for damages due to the debtor applying for suspension of the enforcement process on the other hand, Article 18, Paragraph 2, of the Compulsory Enforcement Act provides that the court can, in necessary circumstances or based on applications by debtors, after the posting of adequate bond, cease the compulsory enforcement process to ensure the interests of both creditor and debtor. The provision of such bond does not guarantee the performance of the original debt and therefore does not increase the obligation of the debtor. As to whether applications made by creditors for compulsory enforcement must be carried out in accordance with executive titles, compared to the case where the court, due to applications by the debtor, after the posting of adequate bond and suspending the enforcement process, one being a compulsory execution filed by the creditor in accordance with executive titles, and the other being that of the debtor contending the causes for suspension of compulsory enforcement and providing bond, the two contentions and facts are distinct and, hence, there is no conflict with Article 7 of the Constitution. 
      
    • *Translated by BAKER & McKENZIE.
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