Strengthening enforcement of commercial court decisions in Mongolia

Overview
Project Summary Document

TCRS 16953

Status Approved

Location

Mongolia

Business Sector

Legal Reform

Notice Type

Public

PSD Disclosed

29 Nov 2022

Project Description

The Law of Mongolia on Court Decision Enforcement (“the Law”) adopted in 2017 provides for general regulatory and institutional framework for enforcing all court decisions, including civil/commercial and administrative court decisions. The Law removed incentive/bonus scheme for enforcement of civil/commercial court decisions, which was applicable prior to 2017. The General Authority for Court Decision Enforcement under the Ministry of Justice and Home Affairs (GACDE) is responsible for administering all court decisions in Mongolia, including criminal court decisions as well. 244 bailiffs and 47 senior bailiffs currently work in addition to 33 personnel with management positions. Currently, around 50% of civil, including commercial court judgments remain unenforced on average – this is certainly concerning and indicates that further institutional and regulatory reforms need to be considered and implemented.

When it comes to enforcement of civil/commercial court decisions, the key issue that delays enforcement proceedings is organising auctions of assets and determining value of relevant assets. Enforcement proceedings are often delayed by years because of complaints made by respondents to courts challenging the value of forced sales and auctions.

Further, enforcement proceedings are often delayed and suspended due to lack of assets of legal entities and respondents. It is not possible under the existing laws and regulations to recover assets of shareholders of the respondent legal entities who are ultimate beneficiaries of the legal entities. Currently, it is not possible to organise online auctions for sale of assets during enforcement proceedings. Holding auctions in person would require more resources and institutional capacity and would not encourage transparency and accountability during enforcement proceedings. As part of the regulatory reform, it is contemplated to have online auctions for sale of assets during enforcement proceedings. Further, bailiffs working at the Capital City Agency for Court Decision Enforcement have more workload and handle more than 100 cases simultaneously on average.

Although there is an electronic case management system which was introduced in 2014 and updated in 2018 in accordance with the new version of the Law on Court Decision Enforcement, it needs further updates. This system is connected to the online registration systems of citizens and legal entities of the General Authority for State Registration, which enables access to information about citizens and legal entities who are payers/obligors. It is also used to issue certificates to citizens and legal entities confirming whether relevant citizens and legal entities have any outstanding debt obligations subject to court decision enforcement proceedings. Due to the lack of continued updates, the data capacity of the current system is not enough, and the system is outdated in terms of the current IT development. In particular, due to the upgrade of other state online systems such as state registration, access to citizens’ data, tax systems and other systems, the current case management system cannot quickly and error-free connect to these upgraded systems. The upgrade of the case management system will enable quick access to these other systems and additional systems, which will improve and increase the efficiency of the enforcement proceedings and help to reduce workload. In response to a request from the Ministry of Justice and Home Affairs (MOJHA), the technical cooperation project aims to support the Mongolian government in their efforts to further institutional and regulatory reforms aimed at improving the effectiveness of the court decision enforcement in the country by addressing the issues highlighted above.

It is proposed to initiate a TC project, the objective of which would be to assist the Government of Mongolia represented by the MOJHA in improving the effectiveness of enforcement of commercial court decisions in the country, focusing on the digitisation of the enforcement procedures.

The Project will be implemented to achieve the following objectives: (i) to improve effectiveness of court decision enforcement and reduce the delays in enforcement proceedings by way of improving the existing legal framework; (ii) to enable electronic auction of assets and improve efficiency of bailiff services by way of improving online case management system; (iii) to identify an optimal institutional structure and status for court decision enforcement authority with specific reference to civil/commercial court cases and reflect the findings in the draft revised version of the Law.

The Project will consist of four components implemented in two phases:

Phase 1:

Component 1. Policy, legislative and institutional advice

Review of existing legal and institutional frameworks and practices on enforcement of court decisions and legal drafting assistance.

Component 2. Development of the Concept and Implementation Plan for digitalisation of enforcement procedures

Development of the concept, implementation plan and ToR for upgrading case management system of the Court Decision Enforcement Agency;
Development of the concept, implementation plan and ToR for development of online electronic auction for sale of assets during enforcement procedures.

Phase 2: (will be implemented after adoption of legislative amendments under Component 1)

Component 3. Digitalisation of enforcement procedures

Upgrading the case management system for the Court Decision Enforcement Agency and Piloting the case management system for the Court Decision Enforcement Agency;
Development of online auction for sale of assets during enforcement procedures and piloting an online auction.

Component 4. Strengthening bailiff capacity building

Development of a training programme and training materials for bailiffs on enforcement of commercial court decisions, development of e-learning course, and delivery of training for bailiffs;
Impact assessment.

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

Enquiries

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

TCRS 16953

Status Approved

Location

Mongolia

Business Sector

Legal Reform

Notice Type

Public

PSD Disclosed

29 Nov 2022

Project Description

The Project will consist of four components implemented in two phases:

Phase 1:

Component 1. Policy, legislative and institutional advice

Review of existing legal and institutional frameworks and practices on enforcement of court decisions and legal drafting assistance.

Component 2. Development of the Concept and Implementation Plan for digitalisation of enforcement procedures

Development of the concept, implementation plan and ToR for upgrading case management system of the Court Decision Enforcement Agency;
Development of the concept, implementation plan and ToR for development of online electronic auction for sale of assets during enforcement procedures.

Phase 2: (will be implemented after adoption of legislative amendments under Component 1)

Component 3. Digitalisation of enforcement procedures

Upgrading the case management system for the Court Decision Enforcement Agency and Piloting the case management system for the Court Decision Enforcement Agency;
Development of online auction for sale of assets during enforcement procedures and piloting an online auction.

Component 4. Strengthening bailiff capacity building

Development of a training programme and training materials for bailiffs on enforcement of commercial court decisions, development of e-learning course, and delivery of training for bailiffs;
Impact assessment.

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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Strengthening enforcement of commercial court decisions in Mongolia

Project Description

Understanding Transition

Business opportunities

Enquiries

Business opportunities

General enquiries

Project Description

Understanding Transition

Business opportunities

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)