HCCJ. Extension of the obligation to award compensatory damages

The High Court of Cassation and Justice ruled that the public institutions involved in the process of privatization of a company shall pay that company compensatory damages for the restitution in kind of its real estate to the former owners as obliged through a definitIve and irrevocable ruling, according to art. 324 paragraph 2 of the Government Emergency Ordinance no. 88/1997. This statutory instrument does not institute conditions in regards with assuming the obligation to compensate the public institutions involved, thus of the cause of such an obligation, which must necessarily comprise the restitution in kind of the immovable owned by the company to the former owners, as ordered definitvely and irrevocably by a court of law. According to the provisions of art. 324 of the Government Emergency Ordinance no. 88/1997,  the compensation owed by the public institution involved in the privatization process to the company who lost the immovable as a result of the admission of the legal action must be established (according to the rulings of the High Court of Cassation and Justice, i.e. Decision no. 18/2011) at the level of the net book value. The net book value shall be considered as it was reflected in the balance sheet at the time of the immovable leaving the company’s property and shall be actualized with the inflation rate at the moment of the compensation for damages. (Decision no. 809 of the 12th March, 2014, rendered in second appeal by the Section I – Civil of the High Court of Cassation and Justice seeking recovery of property)

:: The source: JURIDICE.ro

Andreea BANU

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