The effect of injunction occurs as to the obligor, when the court order of provisional seizure is executed. Therefore, the obligor forfeits the right to dispose of the property subjected to the provisional seizure, and the right to dispose of the prop...
The effect of injunction occurs as to the obligor, when the court order of provisional seizure is executed. Therefore, the obligor forfeits the right to dispose of the property subjected to the provisional seizure, and the right to dispose of the property is transferred to the State. There are two distinctive theories with respect of the relative effect of the provisional seizure: the one is the theory of relative effect of proceedings under which the obliges who have participated later in the proceedings of provisional seizure while the proceedings of execution based on the provisional seizure continue may deny any act to dispose of the property committed after the provisional seizure was executed by invoking the injunctive effect of provisional seizure; and the other is the theory of individual relative effect under which the only obligee who is entitled to claim the injunctive effect of provisional seizure is the obligee who initiated the proceedings of provisional seizure. Under the Civil Execution Act currently in force in Korea, it is the judicial precedents of the Supreme Court and the generally accepted theory to follow the theory of individual relative effect in understanding the injunctive effect of the provisional seizure. However, it is more desirable to interpret the clause to prohibit a holder of security interest created by agreement from filing a demand for distribution in order to prevent harms that might be otherwise caused by participation in distribution by fabrication.