The Federal Arbitration Court of the Moscow Circuit dismissed the claim filed by the Deputy Prosecutor of the City of Moscow against the “Russian State University of Physical Culture, Sport and Tourism” and LLC “Firma Iliev”, thus revoking the ruling of t

The Deputy Prosecutor of the City of Moscow filed a claim against the Federal state educational institution for higher professional training “Russian State University of Physical Culture, Sport and Tourism” and the Limited Liability Company “Firma Iliev” for the acknowledgement as invalid of a lease agreement to a plot of land and an annex to it by reason of their nullity, and for the enforcement of the consequences of the void transaction by way of imposing a duty upon LLC “Firma Iliev” to transfer the plot of land with an area of 157 051 sq. m. located at: Moscow, Sirenevy boulevard 4, to the Federal state educational institution for higher professional training “Russian State University of Physical Culture, Sport and Tourism.”

By its ruling the Arbitration Court of the City of Moscow satisfied the claim in part. The court acknowledged as void the supplementary agreement of 30.06.06 to the lease agreement, and enforced the consequences of the invalidity of a void transaction by way of imposing a duty upon LLC “Firma Iliev” to transfer the plot of land with an area of 157 051 sq. m. located at: Moscow, Sirenevy boulevard 4, to the Federal state educational institution for higher professional training “Russian State University of Physical Culture, Sport and Tourism.”

The resolution of the court of the appeals instance upheld the ruling of the Arbitration Court of the City of Moscow, and dismissed the complaint filed by LLC “Firma Iliev.”

Attorneys of the Law firm “YUST”, who were representing LLC “Firma Iliev” in the court of the cassational instance, clarified, inter alia, that pursuant to art. 270 of the Russian Civil Code, entities to whom a plot of land has been allocated for permanent use have the right to transfer this plot of land by lease with the consent of the owner of the respective plot of land. Such consent had been granted by the owner of the plot of land in this case. Consequently, lease relations between the Federal state educational institution for higher professional training “Russian State University of Physical Culture, Sport and Tourism” and LLC “Firma Iliev” were legal, and the courts of the first and second instances had no grounds for acknowledgement of the supplementary agreement of 30.06.06 as void, and for the enforcement of the consequences of a void transaction.

The court of the cassational instance supported the arguments brought by the attorneys of the Law firm “YUST” and revoked the ruling of the Arbitration Court of the City of Moscow and the resolution of the Ninth Arbitration Appeals Court in the part which was subject to the complaint.