Decree No. 152/2024/ND-CP (“Decree 152”) continues to bring new changes and adjustments on civil judgment enforcement in Decree 62/2015/ND-CP (“Decree 62”), which was amended and supplemented by Decree 33/2020/ND-CP (“Decree 33”) before. In this article, we discuss some changes related to the provisions on civil judgment enforcement in Decree 152.
1. More provisions on applying security measures and forcing civil judgment enforcement
A notable advancement introduced by Decree 152 is the incorporation of detailed provisions governing the application of security measures and the enforcement of judgments with respect to securities as assets. Pursuant to Clause 5, Article 1 of Decree 152, these enforcement measures are meticulously delineated according to the specific characteristics of each category of securities, thereby enhancing legal clarity and ensuring practical enforceability in judicial and administrative execution.
• For securities that are listed or registered for trading at stock exchanges:
– The enforcement officer shall issue a decision to freeze securities and send it to the Vietnam Securities Depository and Clearing Corporation (“VSDC”) and other agencies, organizations and individuals as prescribed in the Law on Civil Judgment Enforcement. Within 01 working day from the date of receipt of the enforcement officer’s decision, VSDC shall freeze securities under the law on securities and send a notice to the civil enforcement agency and the depository member.
– The enforcement officer issues a decision to enforce the seizure and disposal of securities. Within 05 working days from the date of valid notification of the decision to enforce the seizure and disposal of securities, the parties may agree on the sale of securities and notify the civil enforcement agency in writing of that agreement.
After the above deadline, the civil enforcement agency shall issue a document requesting VSDC to transfer the seized securities to the civil enforcement agency. The civil enforcement agency shall have the rights and obligations as prescribed by law regarding the securities received. Within 05 working days from the date of receipt of the requested document from the civil enforcement agency, VSDC must transfer the securities. Within 02 working days from the date of completion of the transfer of securities, the enforcement officer shall sell according to the agreement of the parties. In case the parties do not reach an agreement or cannot reach an agreement, the enforcement officer shall sell the securities through the matching order method at the reference price, according to the provisions of the law on securities.
In case of proactively issuing a decision to enforce the judgment, immediately after issuing the decision to enforce the seizure, the civil judgment enforcement agency shall issue a document requesting VSDC to transfer the seized securities to the civil judgment enforcement agency and sell the securities by order matching method at the reference price, according to the provisions of the law on securities.
• For unlisted securities, unregistered securities, and securities that have been centrally registered at VSDC or are listed and registered for trading but cannot be sold, the enforcement officer shall enforce the asset freeze and issue a decision on coercive distraint and asset disposal. The order and procedures for the valuation and sale of securities shall be carried out in accordance with the provisions of the Law on Civil Judgment Enforcement, the Law on Property auctions, and other relevant laws. After selling the securities, the civil judgment enforcement agency shall send a written request to VSDC to transfer the ownership of the securities to the buyer.
• The handling of securities, shares, capital contributions not falling under the above cases and valuable papers shall be seized and handled in accordance with the provisions of the Law on Civil Judgment Enforcement, the law on property auctions, the law on enterprises and other relevant laws. Upon issuing a seizure decision, the enforcement officer shall concurrently issue a written notification of the seizure to the enterprise in which the judgment debtor has made capital contributions, as well as to relevant authorities and organizations. This notification serves to prevent any transfer of ownership or alteration of the current status of the seized assets until the civil judgment enforcement agency renders a final decision.
• In cases where the civil judgment enforcement agency is applying security measures or compulsory enforcement of judgments corresponding to the obligations of the judgment debtor and the judgment enforcement costs, and the judgment debtor has other assets, the enforcement officer shall issue a written request to the relevant competent authority to immediately notify the civil judgment enforcement agency when transactions arise regarding such assets for coordination in handling. This measure ensures the effective recovery of enforcement obligations and mitigates the risk of asset dissipation.
The new provisions in Decree 152 reflect an adaptation to the realities of the securities market, enhancing the feasibility of civil judgment enforcement measures. The explicit regulation of timelines and procedural steps for relevant parties, particularly the involvement of VSDC, ensures that the enforcement process concerning securities assets is conducted transparently and effectively. Additionally, the recognition of the parties’ right to negotiate before the forced sale of securities facilitates the exploration of appropriate settlement solutions, mitigating potential adverse impacts on asset value.
2. Amending rules on property auction in civil judgment enforcement
Decree 152 has the following amendments and supplements compared to Decree 33:
• Decree 152 amends the provisions on the selection of an organization for auctioning assets. Specifically, if the parties cannot reach an agreement on an auction organization, the enforcement officer will select an auction organization according to the law on auctioning assets. Decree 33 does not mention the case where the parties cannot reach an agreement.
• Decree 152 amends the deadline for delivering assets to the auction buyer. While Decree 33 stipulates the deadline for delivering assets is 30 days, but can be extended to 60 days in difficult or complicated cases, Decree 152 stipulates the deadline for delivering assets is 60 days, except in cases of force majeure or objective obstacles. This eliminates the “difficulty and complexity” factor and creates more clarity in implementation.
• Decree 152 adds sanctions for auction property buyers who do not fulfil their payment obligations on time. If the buyer does not pay or does not pay the full amount within 30 days, the civil enforcement agency can terminate the auction property sale contract or request the Court to cancel it in accordance with the law. Decree 33 does not mention specific legal consequences in this case.
Decree 152 has made important changes to improve and enhance the effectiveness of civil judgment enforcement. These amendments and supplements help clarify the responsibilities and obligations of the enforcement agency, and at the same time provide stricter regulations for related parties, especially in the field of asset auction and enforcement. These changes not only help increase transparency and fairness in the enforcement process but also create a solid legal basis to ensure the legitimate rights of related parties, contributing to improving the effectiveness of law enforcement in the field of civil judgment enforcement.
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