Bank of China Limited v Chen (No 2)

The dispute between Bank of China Limited and Chen involved the recognition and enforcement of a Chinese civil mediation judgment in Australian courts. The matter was heard in the Federal Court of Australia, where Chen sought to prevent the enforcement of a judgment rendered by the People’s Court of Jimo District in China. This judgment, known as a 民事调解书 (civil mediation judgment), was issued following a dispute over a loan agreement between the parties. The primary issue before the court was whether the Australian courts should recognise and enforce the Chinese civil mediation judgment.

The court considered the principles of private international law to determine the enforceability of the foreign judgment. Specifically, it examined the recognition of foreign judgments under Australian common law and whether the People’s Court of Jimo District's judgment met the criteria for recognition and enforcement. The court also evaluated the nature and effect of the civil mediation judgment within the Chinese legal system and its enforceability in Australia. It was necessary to assess the judgment’s validity, the process through which it was obtained, and whether it was final and conclusive in accordance with the laws of the place where it was rendered.

In its reasoning, the court held that the Chinese civil mediation judgment was a final and conclusive judgment within the meaning of the common law principles of recognition and enforcement of foreign judgments. The court found that the judgment was valid and enforceable under Chinese law, and there were no grounds to refuse recognition or enforcement in Australia. Consequently, the court upheld the enforceability of the judgment, concluding that it should be recognised and enforced by Australian courts. The final orders reflected this determination, allowing Bank of China Limited to enforce the judgment against Chen in Australia.