A case on payment of a deposit when submitting an application on insolvency of a legal person has been initiated.
The First Panel of the Constitutional Court has initiated a case “On Compliance of Section 62 (1) of the Insolvency Law and Norms of Section 363.2 (2) of the Civil Procedure Law insofar as They Establish the Right to Release Persons from Payment of the Deposit with Article 92 of the Satversme of the Republic of Latvia”.
Article 92 of the Satversme establishes the possibility for every person to protect his or her rights and legal interests before a fair court.
The contested norms provide that a pre-condition for submitting an application regarding insolvency of a legal person is the payment of a deposit for initiating an insolvency procedure in respect to a particular legal person at the amount of two minimum monthly wages by transferring the money to a specially established account of the Insolvency Administration. The document testifying that the payment has been executed must be attached to the application of insolvency procedure. The aim of payment of such deposit is to cover expenses of insolvency procedure in respect to a legal person.
The applicant, i.e. the Riga Regional Court indicates that the duty to pay a deposit established in the contested norms when submitting an application on insolvency shall be regarded as a restriction of the right of persons to a free access to courts.
Moreover, by establishing the possibility to release an applicant (except for an insolvency administration) from payment of such deposit or by reducing the amount thereof, the right of person to a free access to courts is restricted in a non-proportional way.
The Saeima was asked to provide, before 27 September 2011, a reply on the facts of the case and legal substantiation thereof. The term of preparation of the case is 20 December 2011.
Linked case: 2011-16-01