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NAME OF THE CONSTITUTION OF THE KYRGYZ REPUBLIC

SOLUTION OF THE CONSTITUTIONAL COURT OF THE KYRGYZ REPUBLIC

of December 26, 2005

According to the petition of Ksanadu Kazino private company for recognition to unconstitutional and not corresponding Items 1 and 2 of Article 12, to Item 18 of Article 16, to Items 1 and 2 of Article 17, to Item 1 of Article 21, to Item 2 of article 22 of the Constitution of the Kyrgyz Republic of Item 3 of article 11 of the Law of the Kyrgyz Republic "About gambling activities in the Kyrgyz Republic"

Constitutional court of the Kyrgyz Republic in structure: Chairman Bayekova Ch. T., the vice-chairman - Sutalinov A. A., P.N., Kenensariyev A. S. sudeydryzhaka., Togoybayeva Zh. Zh., Esenaliyeva K. E. and Esenkanova K. E.,

Having heard the report of the judge Sutalinov A. A., speeches of representatives of Ksanadu Kazino private company Buzelin R. A. and Aytkulova Zh. O., representative of Jogorku Kenesh of the Kyrgyz Republic Sherikulov A. S. and having researched case papers, the Constitutional court of the Kyrgyz Republic

ESTABLISHED:

In the Constitutional court of the Kyrgyz Republic the petition of Ksanadu Kazino private company for recognition to unconstitutional and not corresponding Items 1 and 2 of Article 12, to Item 18 of Article 16, to Items 1 and 2 of Article 17, to Item 1 of Article 21, to Item 2 of article 22 of the Constitution of the Kyrgyz Republic of Item 3 of article 11 of the Law of the Kyrgyz Republic "About gambling activities in the Kyrgyz Republic" arrived on October 5, 2005. In the petition the question of recognition unconstitutional Item 3 of article 11 of the called Law in the part providing that "the casino cannot be located in real estate objects is put... partially being the state-owned or municipal property, and also property of public associations and trade-union organizations, or in real estate objects of the companies, organizations, organizations which in the capital have in this or that form part of share of the state, local government bodies or public associations and trade-union organizations".

The following arguments are given to reasons for the petition.

The Ministry of Finance of the Kyrgyz Republic based on Item 3 of article 11 of the Law of the Kyrgyz Republic "About gambling activities in the Kyrgyz Republic", the order No. 169-P of July 8, 2005, suspended the license for carrying out gambling activities of Ksanadu Kazino private company.

The challenged article of the Law sets unreasonable restrictions from the point of view of article 17 of the Constitution of the Kyrgyz Republic where it is specified that in the Kyrgyz Republic the laws canceling or diminishing human rights and freedoms shall not be issued that is roughly violates the property right of the lessee, depriving of it the right to property.

Item 3 of article 11 of the Law "About Gambling Activities in the Kyrgyz Republic" contrary to the Constitution guaranteeing security of property violates the rights not only the real owner, but also the budget of Kyrgyzstan receives less profit.

This regulation violates shareholder right of Ksanadu Kazino private company on future income from gambling activities, violating also the right to free economic activity.

In judicial session representatives of Ksanadu Kazino private company Buzelin R. A. and Aytkulov Zh. O., having supported the petition, ask it to satisfy.

Representative of Jogorku Kenesh of the Kyrgyz Republic Sherikulov A. S. he does not agree with arguments of the petition and asks to refuse its satisfaction.

Constitutional court of the Kyrgyz Republic, having considered case papers and having heard explanations of the parties, considers that the petition is not subject to satisfaction on the following bases.

In judicial session statement of representatives of Ksanadu Kazino private company about violation of their property right Item 3 of article 11 of the Law "About Gambling Activities in the Kyrgyz Republic" did not find confirmation.

From explanation of representatives of Ksanadu Kazino private company and case papers it is visible that this society, without being owner of Hayat hotel, only leases the room for implementation of gambling activities based on the license of the Ministry of Finance of the Kyrgyz Republic of series I No. 0213 of October 8, 2004. The room leased by Ksanadu Kazino private company in Hayat hotel is property of private company of Italkir joint business in which 9,2 of % of shares belongs to Fund of state-owned property of the Kyrgyz Republic, and the expected profit on gambling activities which the casino did not receive as a result of revocation of license yet, is not its private property in any way and its non receipt cannot be regarded as deprivation of its right to property guaranteed by the Constitution of the Kyrgyz Republic.

The constitutional court of the Kyrgyz Republic finds superficial and arguments of Ksanadu Kazino private company about infringement and derogation of the right of members of the joint-stock company to free economic activity guaranteed by Item 18 of Article 16 and article 17 of the Constitution of the Kyrgyz Republic.

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