Bank of China Limited v Chen

Bank of China Limited, a foreign lender, sought to enforce a judgment from the People’s Republic of China against Chen, a borrower, in an Australian court. The Chinese judgment in question was a civil mediation judgment, known as a Minshi tiaojie shu, issued by the Chinese People’s Court. The dispute centred on whether this type of judgment could be enforced in Australia under common law principles. Chen contested the enforceability of the Chinese judgment, arguing that it did not meet the criteria for enforcement in Australia. The court was tasked with determining whether the judgment had to be recognised as a judgment under the laws of the People’s Republic of China or the laws of the forum, Australia, to be enforceable.

The primary legal issue was whether a civil mediation judgment from the People’s Republic of China could be enforced in Australia. The court considered whether the judgment was a conclusive determination of the rights of the parties or a provisional settlement that required further adjudication. The court also examined whether the judgment was a final and binding resolution that could be enforced under Australian common law. This involved an analysis of the nature of the civil mediation judgment and its enforceability under the laws of the People’s Republic of China.

The court held that a civil mediation judgment from the People’s Republic of China is not a judgment that is conclusive and binding in the same manner as a court judgment. The judgment did not meet the criteria for enforcement under Australian common law because it was not a final and conclusive determination of the rights of the parties. The court emphasised that the judgment was a provisional settlement that required further adjudication and did not constitute a conclusive judgment under the laws of the People’s Republic of China. Therefore, the court found that the judgment was not enforceable in Australia. Consequently, the application for enforcement was dismissed.