Along with litigation and mediation procedures, the demanding procedure is one of the most crucial procedures for a settlement of a civil dispute through court resolution mechanisms in the courts. The characteristics of the demanding procedure, in comparison with common litigation procedures, are as follows:
- 01. Merits of Demanding Procedure
- 02. Procedure for Payment Order
- 03. Failure of Service of Payment Order
- 04. Objection to Payment Order
Merits of Demanding Procedure
1. The court issues a payment order based only on document review.
In the demanding procedure, the court issues a payment order after examining only the documents submitted by a creditor who applied to a payment order without interrogating parties to the dispute. Thus, the creditor need not appear before the court, unlike ordinary litigation procedure, and may save time and effort for appearing before the court.
2. Disputes can be settled expeditiously.
The demanding procedure is a summary procedure for settling a dispute only according to a creditor’s application for a payment order if a debtor fails to perform the obligation to pay money, mainly such as a loan, a purchase price for goods, and a rent. If the debtor objects to a payment order, the case is transferred to an ordinary litigation procedure. However, if the debtor does not raise any objection and the payment order becomes final and conclusive, the creditor can satisfy his/her claim by applying for forced execution based on such finalized payment order to settle the dispute expeditiously.
3. The fees the creditor has to pay to the court are inexpensive.
The demanding procedure costs less than the litigation procedure because a creditor only pays the stamp fee which is equivalent to 10% of the cost of litigation and a service fee for six occasions per capita of the parties, at the time of applying for a payment order.
4. If a payment order is finally determined, it has the same effect as a final and conclusive judgment.
In addition, when a payment order is finally determined a special rule on the compulsory execution provides that in principle, such order may be subject to compulsory execution without separately granting an execution clause.