Law

The Supreme People's Court releases the second batch of typical cases of administrative coercion involving enterprises, and takes multiple measures to enhance the effectiveness of resolving administrative disputes involving enterprises

2025-08-18   

Recently, the Supreme People's Court released two batches of typical cases of administrative coercion involving enterprises, aiming to highlight the judicial practice and effectiveness of the people's courts in supervising and correcting illegal administrative coercion behaviors, protecting the property rights and other legitimate rights and interests of market entities in accordance with the law, and further preventing the occurrence of similar administrative violations. The Supreme People's Court released the second batch of 5 cases on August 18th. The focus of the second batch of typical cases is reflected in the administrative compulsory cases involving enterprises. The people's courts make judgments that are conducive to substantive resolution of administrative disputes in accordance with the law, increase the mediation work of administrative cases, and take multiple measures to enhance the effectiveness of resolving administrative disputes involving enterprises, in order to ensure that the decision-making and deployment of the Party Central Committee on the development of the private economy are implemented. The typical case of a Chinese herbal medicine store suing the Market Supervision Administration of Xiangtan City, Hunan Province for the seizure of property and administrative compensation is one of them. On June 29, 2021, the Market Supervision Administration of Xiangtan City conducted an inspection of a traditional Chinese medicine store and found that it had engaged in illegal behavior of pre preparing a large amount of prescription drugs without a drug business license, medical institution practice license, medical institution preparation license, and without commissioning the preparation of preparations for sale. The Xiangtan Municipal Supervision Bureau seized the relevant items and sent them to a professional institution for testing. Based on the test results, it was determined that a certain traditional Chinese medicine store was suspected of operating counterfeit drugs. Therefore, the suspected criminal clues were transferred to the public security organs, but the seized drugs were not handed over. On November 1st of the same year, the Xiangtan Municipal Supervision Bureau conducted another on-site inspection of the medicinal herb store, seized similar drugs, and issued a "Decision on Implementing Administrative Compulsory Measures"; Subsequently, on December 1 of the same year, it was decided to extend the detention period for the two confiscated drugs by another 30 days, but they were not returned until March 2023. A certain traditional Chinese medicine store filed a lawsuit with the people's court, requesting a judgment to confirm that the detention behavior of the Xiangtan Municipal Supervision Bureau was illegal and to return the detained drugs. The Yuhu District People's Court of Xiangtan City held in the first instance that the Xiangtan Supervision Bureau failed to take action after the extended detention period expired, and the long-term detention of the involved items far exceeded the statutory detention period, violating Article 27 of the Administrative Compulsory Law and constituting an illegal act; Due to the fact that some of the property involved in the case belongs to drugs, the Xiangtan Municipal Supervision Bureau detected illegal addition of chemical components after inspection, which may involve public health and medication safety. In order to adhere to risk management and implement strict regulatory systems, it is more appropriate for the administrative authorities to formulate a plan for proper handling. Therefore, the judgment confirms that the detention behavior of the Xiangtan Municipal Supervision Bureau is illegal and orders remedial measures to be taken. After a certain traditional Chinese medicine store appealed, the Xiangtan Intermediate People's Court rejected the appeal and upheld the original judgment on the same grounds in the second instance. In this case, the supervisory bureau of Xiangtan City lawfully decided to detain the illegal drugs, but the detention time clearly exceeded the statutory period. The people's court confirmed the sufficient basis for the illegal judgment in accordance with the law; In the absence of a consensus on the subsequent disposal of the drugs involved and the nature of the behavior of a certain traditional Chinese medicine practitioner, it is also in line with the need to protect public drug safety to order remedial measures instead of ordering the administrative agency to return the drugs. The judgment in this case not only solidifies the legal responsibility for administrative inaction and disorderly behavior, but also supports the reasonable demands of the enterprise; We also fully respect the professional judgment and enforcement power of drug regulatory authorities, taking into account the legitimate rights and interests of enterprises and the public interest. From the subsequent situation, both parties finally reached a settlement intention. The Xiangtan Municipal Supervision Bureau destroyed some moldy drugs, and a certain traditional Chinese medicine store strengthened its own rectification. The local government also allowed it to participate in the construction and operation of a large-scale traditional Chinese medicine industrial park. The dispute resolution achieved a win-win situation. (New Society)

Edit:Wang Shu Ying Responsible editor:Li Jie

Source:legaldaily.com.cn

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