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Judgment of the Presidium of Supreme Commercial Court of 25 September 2012 № 5944/12 in the case The Deputy Military Prosecutor of the Western Military Circuit et al. vs The Moscow Regional Directorate of the Federal Agency for the Management of State Property et al.

Point of law: whether restitution of a land plot as a consequence of invalidity of a purchase-sale contract is admissible, if after the conclusion of the contract the right of common share ownership to the land plot has been gained by owners of an apartment house built on this site?

Alternative attitudes: 1) it is admissible, because the rights of the owners of apartment house are not violated by such bilateral restitution; or 2) it is not admissible, since the creation of the right of common share ownership leads to the termination of the former owner’s rights to the land plot.

Ratio decidendi: the second approach is legally correct.

Practical consequences: the Judgment says that prior court decisions in analogous cases if inconsistent with this interpretation may be reversed in the procedure and within the limits envisaged by Art 311 of the Commercial Procedure Code.

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All court decisions in the case

 

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