【标题】上海市卢湾区新家坡园景苑业主委员会不服上海市卢湾区物价局核准物业费案(附英文)
【裁判字专号】(2003)卢行初字9号
【审结日期】2003-06-25
【案例类型】行政
【审级】一审
【审结机关】
 
   
     
 
 
 
 
 
 
 
【Title】Owners’ Committee of Singapore Landscape Court of Luwan District, Shanghai City (Plaintiff) AND Price Control Bureau of Luwan District, Shanghai City (Defendant)
【Judgement No.】Administrative No 9 of 2003
【Date of Conclusion of Hearing】2003-06-25
【Catalog】Administrative Cases
【Level】Original Jurisdiction
 
   
     
 
PART I HEADNOTE
(1) Written Judgment No: Administrative No 9 (2003) of the People's Court of Luwan District, Shanghai City
(2) Cause of Action: Dispute Over The Decision To Approve The Charging Of Management Fees Of A Property 
(3) Parties:
Plaintiff: Owners’ Committee of Singapore Landscape Court of Luwan District, Shanghai City 
Agent ad Litem: Fu Chunzi, Chairwoman of the Owners’ Committee of Singapore Landscape Court of Luwan District, Shanghai City (“the Chairwoman”)
Entrusted Agent: Sun Zhengjie, Lawyer of the Zhongya Zhangcheng Law Office of Shanghai City
Defendant: Price Control Bureau of Luwan District, Shanghai City
Agent ad Litem: Chen Yongliang, Director of the Price Control Bureau of Luwan District, Shanghai City 
Entrusted Agent: Ren Long, Staff of the Price Control Bureau of Luwan District, Shanghai City
Third Party: Gaowei Hongteng Property Services (Shanghai) Co., Ltd
Agent ad Litem: Anthony Seah Choon-Tong, Director of Gaowei Hongteng Property Services (Shanghai) Co., Ltd
Entrusted Agent: Shan Xinyu, Lawyer of the Huiye Law Office of Shanghai City
(4) Level of Trial: First Instance
(5) Trial Authority and Composition:
Court of First Instance: People's Court of Luwan District, Shanghai City (“the Court”)
Collegial Panel: Li Ping (Chief Judge), Hongwei and Chaojiong (Acting Judges)
(6) Date of Conclusion of Hearing: 
25 June 2003
 
PART II CLAIMS
1.          Concrete Administrative Acts Being Sued
 
Since 1 January 2001, the Price Control Bureau of Luwan District, Shanghai City (“the Defendant”) approved Gaowei Hongteng Property Services (Shanghai) Co., Ltd (“the Third Party”) the specific administrative acts of charging the property management fees at 2.45 Rmb per square meter per month from the Singapore Landscape Court of Luwan District, Shanghai City (“the Landscape Court”).
 
2.          The Plaintiff's Requests
 
The Defendant failed to comply with the legally-prescribed examination process after the Defendant had received the Third Party’s application for the charging of the said management fees. The Plaintiff submitted that the approval decision subsequently made by the Defendant over the charging of management fees by the Third Party was unlawful. The plaintiff therefore requested the Court to revoke the Defendant's decision.
 
3.          The Defence
 
After receiving the application by the Third Party and going through the examination process, the Defendant revealed that, at the very beginning, the Landscape Court was managed by the Jianzhan Properties Management (Shanghai) Co., Ltd (“Jianzhan”). The Jianzhan later changed its name to Meiyi Properties Management (Shanghai) Co., Ltd (“Meiyi”) and Meiyi subsequently merged with Gaowei Hongteng Property Services (Shanghai) Co., Ltd (“the Third Party”). The Defendant therefore inserted the Third Party’s name with an official seal onto the management fees approval form of the former property management services companies. The acts of the Defendant thus signified consent to the Third Party to charge management fees in accordance with the originally approved fee schedules as shown on the approval form. The Defendant regarded its approval acts as correct and therefore requested the Court to reject the Plaintiff’s requests. 
 
4.          The Third Party:
 
The Third Party consented to the Defendant’s submissions and requested the Court to reject the Plaintiff’s requests.
 
PART III FACTS AND EVIDENCE
After an open trial and the investigation by the Court, the facts were clarified as follows: 
Jianzhan, Meiyi and the Third Party were three distinct, separately registered companies. Occupations of the Landscape Court were commenced since 1 May 1999, an initial-stage Property Management Entrusted Services Contract (“the Contract”) was then entered into between Xinrui Real Estate Development Co., Ltd (“the Developer”) and Jianzhan. The Contract was valid from 1 May 1999 until 1 May 2000.
Pursuant to the Contract, Jianzhan submitted an application to the Defendant for charging of management fees at 2.78 Rmb per square meter per month from the house owners of Landscape Court.
The Defendant gave permission to Jianzhan to charge the initial-stage property management fees at 2.45 Rmb per square meter per month from the Landscape Court by affixing a seal onto the “Approval Form and Register for Record of Charges of Property Management Services in Shanghai City” (“the Approval Form”) submitted by Jianzhan.  
After the expiration of the Contract, the Developer and Meiyi entered into an “Entrusted Agreement on the Management of Properties in Landscape Court” (the First Agreement”) on 25 May 2000. The First Agreement provided that the management period was until 31 December 2000. The Defendant approved the fee schedules by Meiyi by merely affixing Meiyi’s company seal onto Jianzhan’s Approval Form, which confirmed that Meiyi had submitted an application for approving the fee schedules and signified the Defendant’s acts of approval. 
Soon after the expiration of the First Agreement, the Developer and the Third Party entered into another “Entrusted Agreement on the Management of Properties in Landscape Court” (the Second Agreement”). The Second Agreement provided that the management period was between 1 January 2001 and 31 December 2002.
For this, the Defendant again affixed the Third Party’s company seal onto the Approval Form which had previously been affixed with the company seals of Jianzhan and Meiji. The seal of the Third Party signified the Defendant’s approval on the Third Party to charge the initial-stage management fees from the Landscape Court. Nevertheless, the Approval Form did not reflect the time of application submitted by the Third Party, the approving circumstances of the Defendant and the time of approval, etc.
 
The above-mentioned facts were evidenced by the following:
1.          The Third Party’s company registration records provided by the Shanghai Administration of Industry and Commerce;
2.          Jianzhan’s company registration records provided by the Shanghai Administration of Industry and Commerce;
3.          Meiyi’s company registration records provided by the Shanghai Administration of Industry and Commerce;
4.          The Contract entered into between the Developer and Jianzhan;
5.          The First Agreement entered into between the Developer and Meiyi;
6.          The Second Agreement entered into between the Developer and the Third Party;
7.          The Approval Form and Register for Record of Charges of Property Management Services in Shanghai City (“the Approval Form”);
8.          The Business License of the Third Party;
9.          The Grading Certificate on the Quality of Properties Management in Shanghai issued to the Third Party;
10.      The Balance Sheet of Landscape Court for the month of December 2001;
11.      Elaborations by the Third Party;
12.      The Representations given by Hu Wei, one of the staff of the Defendant, on 13 August 2001;
13.      Article 23 of the Regulations of Shanghai Municipality on Residential Property Management; 
14.      Article 2 of the Notice on doing well the adjustments on the charging standards of common domestic-sale commodity residential properties management fees and the range of its fluctuation in the Year 1998, Document No. 342 (1997) of Hu Jia Fang; &
15.      Articles 3 & 5 of the Tentative Measures of Shanghai Municipality on the charging of commodity Residential Property Management Services.
 
PART IV GROUNDS OF JUDGMENT
In accordance with the above-mentioned facts and evidence, the People's Court of Luwan District, Shanghai City considered that,
The Defendant was the principal administration authorised by the laws and regulations to examine and approve the charging of commodity residential initial-stage property management fees. The Defendant should have fulfilled its statutory duties of approving management fees in accordance with the stipulations under relevant laws and regulations.
After going through the trial and the process of contesting the evidence, the confirmed facts proved that the Defendant gave approval on the Third Party to charge the initial-stage management fees from the Landscape Court by merely affixing the Third Party’s company seal onto the Approval Form which had been previously given to other companies. The Defendant was also unable to provide the bases such as the exact time of application submitted by the Third Party, the approving circumstances of the Defendant and the time of approval, etc. At the same time, the Defendant was unable to make clear the applicable laws and regulations relied upon in its acts of approval since the Defendant lacked the comprehensive components that produced the concrete administrative act of approving charges. Hence, the Defendant was also unable to make clear the applicable laws and regulations relied upon in its acts of approval. To sum up, the Defendant’s concrete administrative act of approving the Third Party to charge the initial-stage management fees from the Landscape Court was not in compliance with the statutory procedures. The court should support the Plaintiff’s claims to revoke the relevant decision of the Defendant.
 
PART V CONCLUDING JUDGMENT
Pursuant to stipulations under Article 54(2)(3) of the Administrative Procedure Law of the People's Republic of China (“the Administrative Procedure Law”) and Article 59(1) of the Interpretation of the Supreme People's Court on the Execution of the Administrative Procedure Law of the People's Republic of China (“the Interpretation”), the People's Court of Luwan District, Shanghai City held that:
(1)   The concrete administrative act of the Price Control Bureau of Luwan District of Shanghai City to approve the charging of the initial-stage management fees at 2.45 Rmb per square meter per month from Landscape Court were revoked; and 
(2)   The Defendant should, within two months after this Judgment had become effective, make another concrete administrative act of approving the charging of the initial-stage management fees from Landscape Court by the Third Party.
The Court cost of 100 Rmb was to be borne by the Defendant.
 
PART VI EXPLANATION
In regard the small-district properties management companies’ applications to request the Court to approve the charging of the initial-stage property management fees, the relevant Price Control Administration should, within the scope of its statutory authority, fulfill well its administrative duties. The execution of these kinds of administrative functions by the relevant administrative body ought to be based on the confirmed objective facts, the application of appropriate laws and the regulated procedures. The relevant administrative body should use the pre-set administrative purposes as the objective, with reasonable assessment and consideration, and with reasonable dominant demonstration.
To use the regulated forms as the carrier’s requirements of specific administrative acts are in compliance with the law enforcement image of the administrative bodies, reflecting the openness and seriousness of administrative enforcements, and at the same time fixing and confirming the concrete administrative acts of the administrative bodies. They can effectively avoid the possibly-emerging issues of arbitrary administrative enforcements, and form the sources of evidence in facing judicial supervision. In this case, the Defendant acquiesced the application to be made arbitrarily, and at the same time, neglected the forms of administrative acts. The outcome reflected the arbitrariness and hastiness on the part of the acts of the Defendant. Under the traditional administration-oriented thoughts, the administrative bodies stuck to the internal precedents in enforcing the laws. It is difficult to uphold the administrative efficiency and authority by the administrative bodies in front of the policy and concept of administration according to laws and the comprehensive scrutiny by means of judicial supervision.
 






 
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