On conformity of Section 13, Paragraph two, Clause 3 of the Insolvency Law, insofar as it establishes a prohibition for a person in respect of whom criminal proceedings for the commission of a deliberate criminal offence have been terminated for non-exonerating reasons, to work as an insolvency administrator, with Article 101, Paragraph one and the first sentence of Article 106 of the Constitution of the Republic of Latvia
Adjudicated
Augstākā tiesa
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24.10.2024.
28.10.2024.
On conformity of Section 13, Paragraph two, Clause 3 of the Insolvency Law, insofar as it establishes a prohibition for a person in respect of whom criminal proceedings for the commission of a deliberate criminal offence have been terminated for non-exonerating reasons, to work as an insolvency administrator, with Article 101, Paragraph one and the first sentence of Article 106 of the Constitution of the Republic of Latvia
the Constitutional Court decided as follows:
1. It is hereby determined to terminate the proceedings in the case in the part concerning conformity of Section 13, Paragraph two, Clause 3 of the Insolvency Law, insofar as it establishes the prohibition to hold the position of an insolvency administrator for a person in respect of whom criminal proceedings for committing an intentional criminal offence have been terminated for reasons other than exoneration of the person, with Article 101, Paragraph one of the Constitution.
2. It is hereby recognised that Section 13, Paragraph two, Clause 3 of the Insolvency Law, insofar as it establishes the prohibition to hold the position of an insolvency administrator for a person in respect of whom criminal proceedings for committing an intentional criminal offence have been terminated for reasons other than exoneration of the person, fails to conform to the first sentence of Article 106 of the Constitution and shall be declared invalid as of 1 June 2025.
3. In respect of the individuals who have commenced to defend their fundamental rights by means of general judicial remedies, it is hereby recognised that Section 13, Paragraph two, Clause 3 of the Insolvency Law, insofar as it establishes the prohibition to hold the position of an insolvency administrator for a person in respect of whom criminal proceedings for committing an intentional criminal offence have been terminated for reasons other than exoneration of the person, fails to conform to the first sentence of Article 106 of the Constitution and shall be declared invalid from the moment of the infringement of the fundamental rights of the respective individuals.
