Legal information

A Zhejiang Hotel Co., Ltd. and a Zhejiang Real Estate Co., Ltd. are affiliated enterprises of the same group company. Affected by the debt crisis of the group company, the assets of the two companies were insufficient to pay off all debts. Their assets and accounts were frozen, and the two large-scale hotel businesses they operated were unsustainable. The latter two companies applied to the court for pre-reorganization. Based on the administrator's application, the Nanhu Court conducted a substantive merger and pre-reorganization of the two companies. According to the administrator's application, it lifted the seizure of the company's accounts and introduced a new operating team to maintain the normal operation of the hotel. At the same time, it accurately recruited strategic investors based on the characteristics and advantages of the company. In July 2025, the draft reorganization plan was approved by a unanimous vote at the creditors meeting. In August 2025, the reorganization investor paid a reorganization investment of 386.8 million yuan, and the manager and investor completed the handover. The hotel continued to operate stably, revitalized 209 acres of land, more than 100,000 square meters of real estate, and resolved non-performing assets of 1.38 billion yuan. A high proportion of property-secured claims were paid off, and 100% of ordinary claims under 30,000 yuan were repaid, and more than 300 employees were able to retain their jobs.

【Typical meaning】

This case is a typical practice that relies on the linkage mechanism between the government and the court and the active cooperation of the debtor to successfully resolve the operating crisis of a hotel enterprise through the smooth transition from pre-reorganization to reorganization procedures, achieving the multiple goals of protecting people's livelihood, stabilizing employment, and promoting development. Through substantial merger and reorganization, the Nanhu Court integratedly disposed of the assets and debts of related companies, ensuring the continuity of corporate operations and market credibility to the greatest extent. It not only stabilized the employment of hundreds of employees, but also effectively promoted the resource integration and healthy development of the local catering and banquet industry, enhanced the stability and competitiveness of the industrial chain, and provided a replicable judicial practice sample for the comprehensive creation of the "most "promising" business environment brand in Zhejiang on the track of the rule of law with "promising government, effective market, enterprise awareness, and benefit to the masses".

[Basic case facts]

Shangguang Company sued Zhuohang Company and Zhuoyu Company, requiring Zhuohang Company to pay the project payment. Zhuoyu Company shall bear joint and several liability for the above-mentioned project payment. Later, Shangguang Company filed an application for property preservation. After review, the Xiuzhou Court sealed Zhuohang Company's bank account and a real estate project located in Youchegang Town, Xiuzhou District in accordance with the law. Zhuohang Company reported to the court that most of the houses in the real estate project have been sold. If the seizure continues, it will not be able to assist small owners in applying for real estate certificates, which will seriously infringe the legitimate rights and interests of small owners and may even trigger a group lawsuit. In order to properly resolve the conflict, the Xiuzhou Court and the District Housing and Urban-Rural Development Bureau conducted an on-site investigation and confirmed that the real estate project indeed needs to be delivered for use as soon as possible. If it continues to be sealed, it may affect social stability. In order to balance the interests of all parties, the Xiuzhou Court organized multiple mediations between the parties and finally confirmed that Zhuohang Company would provide other real estate as security to replace the original seizure measures.

【Typical meaning】

In this case, when faced with the battle to ensure the delivery of commercial housing projects in the area, the Xiuzhou Court persisted in taking proactive actions, proactively visited the district housing construction bureau and other departments, comprehensively reviewed the guaranteed building projects in the area, actively exerted its judicial functions, and adopted innovative measures such as preservation and replacement. It not only effectively protected the litigation interests of creditors, but also ensured that the project was delivered on time and with high quality, effectively safeguarded the legitimate rights and interests of home buyers, and provided a strong judicial guarantee for maintaining the stable and healthy development of the real estate market and the people's living and working in peace and contentment.

[Basic case facts]

A textile technology company in Haining was established in January 2001 with a registered capital of 30 million yuan. Its business scope included fabric printing, dyeing, processing, etc. Later, the company fell into operating difficulties because its wholly-owned subsidiary was involved in joint and several debt repayments of more than 100 million yuan, resulting in the inability to pay wages to hundreds of employees. Haining Court ruled in accordance with the law to accept the company's bankruptcy liquidation and appointed an administrator. During the trial, more than 170 workers involved in the case complained to the local streets and city government many times due to the sudden bankruptcy of the company and the failure to pay more than 7 million yuan in wages and compensation. The Haining Court quickly contacted the local government and convened a joint meeting with the Bureau of Human Resources and Social Security, the Bureau of Justice and other departments to study and formulate solutions. Under the unified arrangement of the joint meeting, on the one hand, the Haining Court guided the administrator to carry out employee work in an orderly mannerDebt registration, verification, and confirmation work, which helped the employee debt repayment rate reach 100% in just two weeks; on the other hand, the local government took the lead in organizing the Human Resources and Social Security Bureau and the Employment Service Center to hold special job fairs on the spot, inviting companies in the same industry and surrounding employment units to conduct on-site recruitment, and promptly provided jobs for employees, achieving a win-win situation of "resolving wage arrears" and "promoting employment", effectively maintaining regional stability.

【Typical meaning】

In this case, Haining Court jumped out of the "case-by-case" thinking and organically combined the protection of employees' rights and interests, social stability and the optimization of the business environment. While advancing the bankruptcy process in an orderly manner in accordance with the law, it also solved the employment problem of employees through the government-court linkage mechanism, allowing the concept of "employment is the greatest livelihood" to take root in judicial practice, demonstrating judicial wisdom and responsibility.

[Basic case facts]

On April 20, 2023, China Jining Company and Green Company signed a target project procurement contract, stipulating that China Jining Company will purchase the equipment involved in the case from Green Company, and it is agreed that if the construction unit cannot pay the project payment to China Green Company on time and is unable to pay the purchase price to Green Company as specified in the contract, it will not be regarded as a breach of contract by China Jining Company. Afterwards, the project involved in the case was completed and accepted, and a certain Jining company confirmed that all purchased equipment had been received. However, it argued that the construction unit did not pay in time. According to the contract, it did not breach the contract and did not have to bear the payment responsibility. After a trial, the Haining Court ruled that a certain Jining company should pay the payment and interest losses to a certain Lu company.

【Typical meaning】

In practice, in commercial transactions such as construction projects and equipment procurement, "back-to-back" clauses are often used by powerful parties as a tool to transfer risks. This kind of clause essentially overrides the principle of privity of contract and may evolve into an "indefinite waiting clause" under certain circumstances, causing small and medium-sized enterprises to fall into the predicament of unresolved payment obligations. In this case, the Haining Court rejected the unreasonable "back-to-back" clause and delineated the boundaries of the exercise of rights through a "dual-track review" mechanism: on the one hand, it ensures transaction security and market vitality, and on the other hand, it implements unfair clausespenetrating review. By building a judicial paradigm of "freedom of contract + fair review", this case guides market entities to form a contract culture of openness and transparency, risk sharing, and honest performance of contracts.

[Basic case facts]

In July 2021, a food company (demand side) and a technology company (supplier) signed a "Purchase Contract", agreeing that a food company will purchase goods from a technology company in the long term. A technology company also signed a "Supplier Integrity and Integrity Commitment Letter", promising not to provide benefits or disguised bribes to staff of a food company. If the company breaks the contract, it will pay liquidated damages equal to 10% of the total annual purchase contract amount. Later, Mou, a staff member of a technology company, colluded with Zhou, the R&D manager of a food company, and misappropriated the assets of a food company by supplying goods at a high price and returning consulting fees. Zhou also provided Mou's family member's bank card to collect favors, causing major economic losses to a food company. After the incident, Zhou and Mou were sentenced for embezzlement. A technology company argued that it had refunded the corresponding money and Mou had been criminally punished. Therefore, a food company repeatedly claimed the defaulted metal and refused to pay. The Jiashan Court held after trial that Mou paid favors to Zhou and borne the expenses of his family in order to obtain stable procurement needs from a food company. This behavior violated the terms of the integrity commitment. According to the principle of good faith, a technology company should bear liability for breach of contract. However, a certain food company also made some omissions and certain faults in Zhou's integrity management. Therefore, the Jiashan Court finally ruled that a technology company should bear 30% of the integrity liquidated damages, and a food company should bear 70% of the responsibility.

【Typical meaning】

In this case, the Jiashan Court accurately grasped the contractual nature of the integrity commitment and the principle of integrity in commercial activities, clarified the legal effect of the integrity commitment, and while identifying the supplier's breach of contract, it also considered the demander's management fault and reasonably divided the proportion of responsibilities. It effectively guided market entities to abide by integrity and standardize operations in transactions, and established a solid judicial defense line for creating a clean and upright business environment.

[Basic case facts]

In January 2024, a textile company in Shaoxing signed a sales contract with a clothing company in Zhejiang, stipulating that a clothing company in Zhejiang would purchase 36 pieces of finished polar fleece fabric from a textile company in Shaoxing. However, after a textile company in Shaoxing completed production, a clothing company in Zhejiang believed that there was a quality problem and refused to take delivery of the goods. A textile company in Shaoxing filed a lawsuit in court with a garment company in Zhejiang after many unsuccessful communications, requiring a garment company in Zhejiang to pay the purchase price and collect the finished polar fleece fabrics themselves. In view of the fact that a clothing company in Zhejiang is an enterprise involving overseas Chinese, in order to reduce the burden of litigation between both parties, the Pinghu Court decided to contact the Pinghu Federation of Returned Overseas Chinese to use the "French and overseas Chinese linkage" mechanism to promote the resolution of disputes. Later, a full-time mediator from the Returned Overseas Chinese Federation of Pinghu City intervened, organized communication between the two parties many times, and patiently listened to the demands of both parties. On the one hand, they explained the contractual obligations and legal responsibilities to a clothing company in Zhejiang, and made clear the consequences of refusing to perform the contract; on the other hand, they explained in detail to a textile company in Shaoxing the relevant legal provisions and possible legal consequences regarding product quality defects. In the end, after multiple rounds of patient mediation, the two parties reached a settlement.

【Typical meaning】

As an important force in foreign investment, overseas Chinese-related enterprises have special significance in judicial protection of their legitimate rights and interests. The Pinghu Court relies on the "French and Overseas Chinese Liaison" mechanism to accurately identify overseas Chinese-related disputes, quickly respond to corporate demands, and resolve conflicts through multiple collaborations, showing three major advantages: First, it shortens the economic dispute processing cycle, reduces the company's time and economic costs, and reduces negative impacts on operations; second, it strengthens The third is to build a fair and stable development environment, so that overseas Chinese can truly feel the warmth of the motherland's judicial protection, and help form a "concentric circle" of joint efforts in the rule of law to jointly draw a strong country's rejuvenation.

[Basic case facts]

An Egyptian foreign businessman named Nai established a foreign company solely to engage in international trade activities. He purchased sofas and fabrics from an import and export company all year round and sold them abroad. The two parties reconciled and found that there was still more than 150,000 US dollars outstanding. A foreign company and a certain Nai issued an IOU to an import and export company and promised to pay it off before June 30, 2024. However, when the payment period expired, a certain foreign company and Nai XX had not paid off the payment. An import and export company then took the case to court. After investigation, the Tongxiang Court found that the two parties had established a long-term and stable business relationship and had a good basis for cooperation. Except for the payment, there were no disputes over other transactions. Moreover, a foreign-funded company has unintentional default due to temporary capital turnover difficulties, and there is a good basis for mediation. Considering that Mr. Nay was a foreign businessman from Egypt and needed to hire a translator to participate in the litigation, in order to reduce his litigation costs, the court activated the memorandum of cooperation with the Council for the Promotion of International Trade, entrusted the Jiaxing Mediation Center of the China Chamber of International Commerce to mediate first, and assigned a mediator with rich foreign trade experience and foreign language communication skills to participate, which ultimately led to the two parties reaching a mediation agreement.

【Typical meaning】

This case gives full play to the "litigation-mediation docking+"neutral assessment" mechanism is a typical case of efficiently resolving foreign-related disputes through advanced mediation. From entrusting the Jiaxing Mediation Center of the China Chamber of International Commerce to mediate first, to assigning a mediator with rich foreign trade experience and foreign language communication skills to participate, and finally promoting both parties to reach a mediation agreement, it only took 3 days. The successful mediation of this trade dispute, It fully embodies the unique value of the professional litigation and mediation docking mechanism for commercial disputes, demonstrates Zhejiang's speed in efficiently completing one matter for the parties concerned, saves costs for enterprises to the greatest extent, reduces litigation burden, provides convenient dispute resolution methods, protects the stable development of foreign-related trade along the "Belt and Road" with the power of the rule of law, and assists Chinese and foreign enterprises in achieving win-win discussions.

[Basic case facts]

In May 2022, a technology company in Beijing signed a "Purchase Contract" with an aerospace company in Zhejiang, stipulating that a technology company in Beijing would supply 6 digital camera devices to an aerospace company in Zhejiang. The total contract price was 288,150 yuan, and it was agreed to be delivered on October 20, 2022. Quality records and certification documents were required. In April 2023, a technology company in Beijing completed delivery but failed to provide quality documents as agreed. Because an aerospace company in Zhejiang failed to pay off the goods, a technology company in Beijing sued and demanded payment of the remaining payment of 144,075 yuan and corresponding liquidated damages. A Zhejiang aerospace company countersued, claiming that a Beijing-based technology company overdue delivery (actual delivery was 5 months later than agreed upon) and failed to fulfill its quality document delivery obligations. As a result, in order to meet the acceptance requirements for space rocket supporting products, it was forced to entrust a third party to supplement the information and pay a maintenance service fee of 35,000 yuan. It requested a Beijing-based technology company to pay liquidated damages of 288,150 yuan and compensate for losses of 35,000 yuan. After accepting the case, the Pinghu Court actively facilitated the two parties to reach a settlement agreement based on the facts ascertained, which better balanced the interests of both parties.

【Typical meaning】

As a typical representative of technology-intensive and innovation-led new productivity, the aerospace industry has extremely high requirements for the timeliness, compliance and stability of supply chain collaboration. In this case, the Pinghu Court, based on ensuring the collaborative security of the industrial chain and reducing the burden of corporate litigation, gave full play to the flexible function of judicial mediation. By accurately analyzing breach of contract liability and verifying reasonable losses, it not only effectively resolved the dispute between the two parties and avoided the business interference that may be caused by lengthy litigation, but also effectively safeguarded the legitimate rights and interests of upstream and downstream enterprises in the supply chain, strengthened the legal expectations and transaction security of innovative entities, and provided a reliable judicial guarantee for the continued bursting of new productivity and high-quality economic development.

[Basic case facts]

Wang and other 20 workers with an average age of over 60 years old were employed by a greening management company to perform community cleaning work. In February 2025, after the company withdrew from the project, it was owed more than 98,000 yuan in labor remuneration for three months. Wang and others repeatedly pressed for compensation but failed, so they took the case to Xiuzhou Court. After the case was filed, in view of the large number of elderly and vulnerable groups involved in the case, in order to quickly resolve conflicts, Xiuzhou Court immediately launched the "mediation first" mechanism and arranged professional mediators in court to conduct mediation, and successfully resolved the conflicts and disputes.

【Typical meaning】

The handling of this case fully reflects the balanced protection and prudent intervention of the judiciary in optimizing the business environment. Through flexible mediation, on the one hand, it effectively protects the legitimate rights and interests of disadvantaged workers and resolves their urgent needs and worries; on the other hand, it also minimizes the negative impact that the dispute resolution process may have on the normal operation of enterprises, allowing the involved enterprises to avoid credit damage and operational constraints due to litigation and enforcement, and achieve a win-win situation between the protection of workers' rights and interests and the survival and development of enterprises.

[Basic case facts]

As the sole shareholder of a semiconductor company, a materials company applied to the court for compulsory liquidation on the grounds that a shareholders' meeting resolution had been made to dissolve the semiconductor company. A semiconductor company argued that there was a major shareholder dispute within a materials company, and except for the legal representative Yan, the other shareholders and the semiconductor company did not recognize the dissolution resolution. After Yan obtained control of a materials company through illegal means, he made an unauthorized decision to dissolve the company. There is a risk that the relevant resolutions and identity will be revoked. The Xiuzhou Court of first instance found that a technology company, a shareholder of a materials company, had filed a lawsuit to revoke Yan's legal representative appointment and dissolution resolution to a Suzhou district court, and the case is under trial. After the second trial of this case, the Jiaxing Intermediate People's Court held that there was still controversy over whether the shareholders' meeting resolution to dissolve a semiconductor company reflected the true will of a certain materials company, and the related litigation had not yet been concluded, so it was inappropriate to accept the application for compulsory liquidation, and ruled to reject the appeal of a certain materials company in accordance with the law.

【Typical meaning】

The dissolution and liquidation of a company is the final act of terminating the legal personality and involves the balance of interests of multiple parties. If there is a dispute over the cause of dissolution, the court must give priority to solving the substantive issues through litigation procedures instead of directly initiating liquidation procedures. This can not only avoid the abuse of non-litigation procedures, but also prevent the irreversible consequences of company liquidation due to procedural flaws. In this case, the Jiaxing Intermediate People's Court further clarified the boundaries for initiating the company's liquidation procedures and emphasized the importance of the company's internal governance structure. That is, the legality of shareholders' meeting resolutions must strictly follow legal procedures. Any act of controlling the company through improper means and making major unilateral decisions may be revoked due to procedural violations, which reflects the judicial equal protection of shareholders' rights and interests and the prudent attitude towards the company's survival and stability.

Source: Jiaxing Intermediate People's Court