——Case Concerning Application by Kolmar Group AG for Recognizing and Enforcing the Civil Judgment Delivered by the Singapore High Court 

[Basic Facts]

Kolmar Group AG (hereinafter referred to as “Kolmar Group”) is a corporation incorporated in Switzerland. In its application submitted to Nanjing Intermediate People’s Court of Jiangsu Province in June 2016, it claimed that it had disputes with Jiangsu Textile Industry (Group) Import & Export Co., Ltd. (abbreviated as Sutex Group) arising from a sales contract and both Parties reached a settlement agreement. Since Sutex Group failed to perform the settlement agreement, Kolmar Group filed a lawsuit with Singapore High Court in accordance with the jurisdiction clause agreed in the settlement agreement. The Court made an effective judgment. Since Sutex Group and its properties were within the territory of China, it requested Nanjing Intermediate People’s Court of Jiangsu Province to recognize and enforce such Singapore judgment. Sutex Group claimed in its statement that there were no provisions on the mutual recognition, enforcement of judgments and awards in the Treaty on Civil and Commercial Judicial Assistance concluded by and between China and Singapore. Pursuant to Article 282 of the Civil Procedure Law of the People’s Republic of China, the application of Kolmar Group should be dismissed.  

Nanjing Intermediate People’s Court of Jiangsu Province found out through investigation that Sutex Group was present at the court despite being summoned by Singapore High Court. Furthermore, Singapore High Court made a default judgment on October 22, 2015 that Sutex Group should repay USD 350,000, the interest and expenses to Kolmar Group. Sutex Group also received such judgment. In January 2014, Singapore High Court recognized and enforced the civil judgment made by Suzhou Intermediate People’s Court of Jiangsu Province. 

[Judgment]

Nanjing Intermediate People’s Court of Jiangsu Province held that the civil judgment involved was delivered by Singapore High Court. China and Singapore did not conclude or jointly participate in any international treaty on mutual recognition and enforcement of effective civil and commercial judgments. However, since Singapore High Court once enforced a civil judgment delivered by a Chinese court, according to the principle of reciprocity, the Chinese court may recognize and enforce qualified civil judgments delivered by the Singaporean court. After review, the judgment involved did not violate the basic principles of Chinese laws or the state sovereignty, security and public interest. Therefore, on December 9, 2016, in accordance with the provisions of Article 282 of the Civil Procedure Law of the People’s Republic of China, Nanjing Intermediate People’s Court of Jiangsu Province delivered a ruling to recognize and enforce the civil judgment No. O13 delivered by Singapore High Court on October 22, 2015. 

[Significance]

In this case, the Chinese court recognized and enforced the commercial judgment as delivered by the Singaporean court for the first time. Article 282 of the Civil Procedure Law of the People’s Republic of China stipulated that the basis for recognizing and enforcing a judgment delivered by a foreign court was an international treaty or the principle of reciprocity. At present, China has concluded treaties on judicial assistance in mutual recognition and enforcement of civil and commercial judgments with less than 1/3 of the countries along the “Belt and Road”. Therefore, the determination of whether there is a relationship of reciprocity between both countries is crucial to whether the commercial judgments as delivered by the courts of countries along the “Belt and Road” can be recognized and enforced by the Chinese court. According to the precedent where the Singaporean court recognized and enforced the judgment delivered by the Chinese court, the judgment of this case determined that there was a relationship of reciprocity between China and Singapore for the first time and according to the principle of reciprocity, the Chinese court further recognized and enforced the commercial judgment delivered by the Singaporean court. This decision is of landmark significance in the mutual recognition and enforcement of commercial judgments delivered by the Chinese and Singaporean courts which will greatly promote the practice of judicial cooperation among countries along the “Belt and Road” in recognition and enforcement of foreign judgments.