A case on the right of a person to be an insolvency administrator if criminal proceedings against him/her for committing a deliberate criminal offence have been terminated for non-exonerating reasons has been initiated before the Constitutional Court
A case has been initiated before the Constitutional Court “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 contested norm provides that a person against whom criminal proceedings have been terminated for the commission of a deliberate criminal offence for non-exonerating reasons may not be an administrator.
The application is made by the Senate. Examination of the applicant in accordance with he cassation procedure shall be an administrative case which is initiates upon an application of the person on revocation of the administrative deed. By the decision of the Insolvency Control Service, the abovementioned person was removed from the office of insolvency administrator on the basis of the contested norm. The applicant considers that the contested provision is in contradiction with Article 101, Paragraph one and the first sentence of Article 106 of the Constitution, because the restriction of fundamental rights involved in this provision is not proportionate. Namely, the legitimate objective of the restriction of fundamental rights could be reached by less restrictive means of the fundamental rights of a person, for example by allowing evaluation of each individual case.
The Constitutional Court requested the authority that issued the contested regulation (the Saeima) to submit, by 5 February 2024, a letter with a reply detailing the circumstances of the mater along with the legal justification.
The deadline for the preparation of the case is 6 May 2024. The Court will decide on the procedure and date for hearing the case once the case is prepared.
Linked case: 2023-44-01