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On 23 July 2021, the Constitutional Court of the Russian Federation published Judgement No. 40-П/2021 adopted in accordance with Article 47.1 of the Federal Constitutional Law “On the Constitutional Court of the Russian Federation”
On 23 July 2021, the Constitutional Court of the Russian Federation prohibited refusing indexation of monetary sums awarded by the courts to plaintiffs.

The case on the review of constitutionality of Article 183 of the Commercial Procedure Code of the Russian Federation was considered in connection with the request of the Commercial Court of the Republic of Tatarstan and complaint of citizen V.Storublevtsev. The Judgement ​is based on the previously expressed legal positions of the Court.

 

Factual Background

Citizen A. applied with the Commercial Court of the Republic of Tatarstan seeking to obtain indexation of monetary sums awarded to him by the same court in the case on recognising invalid the purchase and sale contract of a garage. Upon consideration of the case the court deemed that the law does not establish clear criteria for the indexation foreseen, put the case on hold and filed a request with the Constitutional Court of the Russian Federation.

Vladimir Storublevtsev from St Petersburg unsuccessfully applied to commercial courts with a similar claim. He thought for indexation of monetary sums awarded upon the claim of a legal person against citizen E. to compensation of losses. V.Storublevtsev is the plaintiff in this case due to procedural succession.

Both applicants pointed to lack of clarity of the Article 183 of the Commercial Procedure Code of the Russian Federation, which in violation of the constitutional right to court protection allows courts to refuse plaintiff’s claims for indexation of monetary sums awarded.

 

Position of the Court

Realisation of right to fair justice is possible only where legal mechanisms are present allowing for the winning party to compensate negative consequences of non-execution of a court judgement within reasonable time. One of such negative consequences is the diminishing of value of the awarded monetary sums due to inflation.

Nevertheless the law-enforcement practice demonstrates the lack of such mechanism in the current legal regulation. Article 183, part 1 of the Commercial Procedure Code that became subject to consideration by the Constitutional Court allows commercial courts to refuse plaintiffs in their claims for indexation of monetary sums awarded due to lack of federal law or agreement between the parties foreseeing such indexation. This is contrary to positions of the Constitutional Court which considers indexation a simplified order of compensation of plaintiff’s financial losses inflicted by untimely execution of court judgement; it also leads to undermining of the right to court protection.

Therefore, Article 183 of the Commercial Procedure Code is not on conformity with the Constitution of the Russian Federation, particularly its Article 46 (part 1).

Pending introduction of amendments to the law by federal legislator the court must use official consumer price index as criterion for indexation of monetary sums.

Decisions in the case of V.Storublevtsev are subject to review.

 

Press Service of the Constitutional Court of the Russian Federation

23 July 2021



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