The Seminar on Typical Cases of Property Rights and Public Rights was held in Beijing on November 15th, 2011. This seminar took the dispute between Kaiqilai and China Southwest Geotechnical Investigation & Architecture Design Institute Co., Ltd. CSGIADI as the case for study. It is a typical case about the dispute between property rights and public rights.

    The main timeline of the case is as follows:
    Kaiqilai and China Southwest Geotechnical Investigation & Architecture Design Institute Co., Ltd. (CSGIADI) signed a contract of geotechnical investigation cooperation on August 25th, 2003.

    The Shaanxi provincial government issued the No. 21 document about the ownership of coal resources in October 2003.

    At the request of CSGIADI, Kaiqilai paid 12 million RMB to CSGIADICSGIADI in March 2005. However, CSGIADI returned the money three days later, saying that this was not in accord with the No. 21 document.

    The legal representatives of both parties signed an agreement to continue to perform the contract on October 12th, 2005.

    On August 18th 2005, Shaanxi Provincial Development and Reform Commission assigned this project to Zhonghuayiye Energy Investment Co., ltd., which was not set up until June 2006, based on No.740 document of 2005.

    On November 8th 2005, Shaanxi Provincial Department of Land and Resources   issued the No. 65 document of 2005 in which the rights and duties of both parties were described in detail. After investigation, both parties agreed to continue to perform the contract signed on August 25th, 2003, to conduct geotechnical investigation cooperation in accordance with  relevant regulations of Shaanxi Province, and to transfer the  exploration right to a joint venture  for future exploration.

    Hong Kong Yiye Investment Co., Ltd and CSGIADI CSGIADI signed a contract of geotechnical investigation cooperation on April 12th 2006.

    Kaiqilai sued CSGIADI to Higher People’s Court of Shaanxi Province for geotechnical investigation cooperation contract dispute and informed Shaanxi Provincial Department of Land and Resources in May 2006.

    The Higher People’s Court of Shaanxi Province ruled in favor of Kaiqilai in the first trial on October 19th, 2006.

    Shaanxi Provincial Administration for Industry and Commerce imposed a fine of 50 thousand RMB on Kaiqilai for misstating registered capital on November 9th 2010.
Yulin Municipal Administration for Industry and Commerce annulled the registration of Kaiqilai Company on March 15th 2011.

    Yuli Bureau of Public Security arrested Zhao Faqi, the legal representative of Kaiqilai Company for misstating registered capital in August 2011.

List of Paticipants:
Jiang Ping           former president of China University of Political Science and Law