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DECISION OF THE CONSTITUTIONAL COURT OF UKRAINE

of June 10, 2003 No. 11-rp/2003

On case on the constitutional representation of 47 People's Deputies of Ukraine concerning compliance of the Constitution of Ukraine (constitutionality) of the Law of Ukraine "About introduction of the moratorium on forced realization of property" (case on the moratorium on forced realization of property)

Case No. 1-11/2003

NAME OF UKRAINE

Constitutional court of Ukraine as a part of judges of the Constitutional Court of Ukraine:

Selivon Nikolay Fedosovich - the chairman,

Evgrafov Pavel Borisovich,

Ivashchenko Vladimir Ivanovich,

Kostitsky Mikhail Vasilyevich,

Malinnikova Lyudmila Fiodorovna,

Mironenko Alexander Nikolaevich,

Nemchenko Vasily Ivanovich,

Wheaten Valery Grigoryevich,

Rozenko Vitaly Ivanovich,

Savenko Nikolay Dmitriyevich,

Victor Egorovich's buffoons,

Timchenko Ivan Artemyevich - the judge-speaker,

Silent Vladimir Pavlovich,

Tkachuk Pavel Nikolaevich,

Chubar Lyudmila Panteleevna,

Shapoval Vladimir Nikolaevich,

with the assistance of Svintsitsky Anatoly Vladimirovich - the representative for the order of the person of law on the constitutional representation; Matveev Vladimir Osipovich - the representative of the Verkhovna Rada of Ukraine, the People's Deputy of Ukraine, the vice-chairman of Committee of the Verkhovna Rada of Ukraine concerning economic policy, management of the national economy, property and investments; Selivanov Anatoly Aleksandrovich - the Permanent representative of the Verkhovna Rada of Ukraine in the Constitutional Court of Ukraine; the representatives recruited in consideration of the case: The president of Ukraine - Nosov Vladislav Vasilyevich - the Permanent representative of the President of Ukraine in the Constitutional Court of Ukraine, the Miller Oleg Vladimirovicharukovoditel Departament of institution policy of the Ministry of Economy and European Integration of Ukraine; The Cabinet of Ministers of Ukraine - Pavlikovsky Lada of Anatolyevna - the Deputy State secretary of the Ministry of Justice of Ukraine; The Cabinet of Ministers of Ukraine and Fund of state-owned property of Ukrainyparfenenko Dmitry Nikolaevich - the vice-chairman of Fund of state-owned property of Ukraine, Barabash of Andrey Nikolayevichanachalnik of department of normative legal support and codification of Legal management of Fund,

N2864-III considered at plenary meeting case on the constitutional representation of 47 People's Deputies of Ukraine concerning compliance of the Constitution of Ukraine (constitutionality) of the Law of Ukraine "About introduction of the moratorium on forced realization of property" of November 29, 2001 (In? домост? Verkhovno ї For the sake of Ukra§ni, 2002, N 10, the Art. 77).

Reason for consideration of the case according to Articles 39, 40 Laws of Ukraine "About the Constitutional Court of Ukraine" became the constitutional representation of 47 People's Deputies of Ukraine.

The basis for consideration of the case according to Articles 71, to 75 Law of Ukraine "About the Constitutional Court of Ukraine" is availability of dispute on compliance of the Constitution of Ukraine (constitutionality) of the Law of Ukraine "About introduction of the moratorium on forced realization of property".

Having heard the judge-speaker Timchenk I. A., Svintsitsky A. V. explanations., Matveeva V. Y., Selivanova A. O., Nosov V. V., Melnik O. V., Pavlikovskaya L. A., Parfenenko D. M., Barabash A. M. and having researched case papers, the Constitutional Court of Ukraine established:

1. The person of law on the constitutional representation - 47 People's Deputies of Ukraine - appealed to the Constitutional Court of Ukraine with the petition to consider question concerning compliance of the Constitution of Ukraine of the Law of Ukraine "About introduction of the moratorium on forced realization of property" (further - the Law) which before enhancement of the mechanism of forced realization of property determined by the laws of Ukraine establishes the moratorium on application of forced realization of property of the state companies and economic societies in which authorized capitals the share of the state constitutes at least than 25 percent. People's Deputies of Ukraine consider such which do not answer the Constitution of Ukraine, Law provisions, in particular parts four of article 13 of the Constitution of Ukraine - all persons of law of property are equal before the law; parts three (in representation the part three is called part two) Article 42 - deprivation of subjects of business activity of "non-state pattern of ownership of opportunity to compete with the state companies and economic societies"; Article 50 - everyone has the right to the environment, safe for life and health, and to compensation of damage caused by violation of this right; Article 124 parts five - judgments are made by courts name of Ukraine and are mandatory in all territory of Ukraine.

Owing to operation of the specified Law, according to the person of law on the constitutional representation, there was situation in case of which the constitutional principle of equality of all persons of law of property and housekeeping is broken that is shown in exclusive protection of the rights of the state companies and economic societies with 25 percent part of state-owned property in their authorized funds in the form of their release from accomplishment of property obligations for benefit of the authorized persons including which were injured owing to wrongful activity of these companies. And this circumstance makes impossible implementation of judgments of property nature by the Public executive service and in production process of cases on bankruptcy concerning such state companies and economic societies.

2. In the letter in the Constitutional Court of Ukraine the Chairman Verkhovnoy For the sake of Ukraine noted that realization is right upon the demand of authorized persons of rather state company or economic society in which authorized capital there is share of the state which arises in case of accomplishment of certain works, the conclusion of civil agreements and so forth, can be limited (is delayed) if it is required by interests of the Ukrainian people and ensuring economic safety of the state.

The president of Ukraine considers that, having implemented the Law certain restrictions for compulsory acquisition of state-owned property, the state thereby exercised the right to own, use and dispose of the property and prohibited only certain ways of alienation of real estate units and other fixed assets of production of the companies. And the satisfaction of requirements of creditors, including on accomplishment of judgments, is possible at the expense of part of other property and non-property assets of the debtor.

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