its public hearing of 24 March 1994 conducted the
vestigation of Case No 4/94 subsequent to the petition submitted to the Court by College of Civil Cases of the Supreme Court of the Republic of Lithuania requesting to
vestigate if Article 292 of the Civil Code is
compliance with the Constitution of the Republic of Lithuania. The Constitutional Court has established: College of Civil Cases of the Supreme Court on 10 January 1994
vestigated
cassation procedure a civil case upon the complaint lodged by defendant Anatolijus Volkovas against the decision passed by Klaipėda District Court on 3 December 1993 which had complied with the suit brought by plaintiff Igoris Vysockis against defendant Anatolijus Volkovas pertaining to repayment of the loan amounting to 457.5 litas. College of Civil Cases while examining the lawfulness and validity of this decision, by its ruling suspended the
vestigation of the civil case and addressed the Constitutional Court with the request to
vestigate if Article 292 of the Civil Code is
conformity with the Constitution.
the ruling the College of Civil Cases grounds its request on the fact that the Court complied with the suit pursuant to the loan contract for the sum of $ 200 USD which had been concluded between the parties (Article 291, Civil Code).
the argumentation of the contracting parties as well as complaints it is stated that the plaintiff gave the defendant a loan of $ 50 USD and his requirements exceeding the above mentioned sum are based on the right to take
terest on the loan, i.e. on the provisions of Article 46 of the Constitution which establish the right to private ownership and freedom of
dividual economic activity. The subject matter of the dispute is regulated
This provides the basis for maintaining that the contents of said Article contradicts the provision of the first part of Article 46 of the Constitution.
the preliminary
vestigation of the case, the petitioner's representative explained that the contents of the right to ownership
cludes management, use and disposal of property. The use of money similarly to the use of any other article (thing) manifests itself
its utilizing
order to satisfy the owner's needs as well as to gain profit. Article 292 of the Civil Code provides for the possibility to take
terest
compliance with the loan contract, i.e. to gain profit from the use of money only
cases prescribed by law as well as executing loan operations with respect to public mutual aid funds and city pawnshops. This norm restricts the possibility to realize the right to ownership to full extent. Chairman of the Seimas of the Republic of Lithuania, representative of the party concerned,
the preliminary
vestigation of the case
formed that the draft law "On Amending and Appending the Civil Code of the Republic of Lithuania" is under consideration
the Seimas at present, which establishes the following wording of Article 292 of the Civil Code: "The amount of
terest according to loan contract may be determined by agreement between parties if the law does not prescribe otherwise". The Constitutional Court holds that:
of the Civil Code which was adopted
1964 and is now
force it is established that it shall regulate property relations and related to them non-property relations.
accordance with this Code, the basis for property relations was socialist economic system and socialist property of means of production, and the state had to provide conditions for the
crease of this property. The Code also provided for
dividual property as one which derived from socialist property. It was established that
dividual property may be only articles of personal consumption, articles of domestic utility and subsidiary household articles, dwelling-house and labour savings. The basis of this property is earned
come. Property, being private ownership of citizens, may not be the source of unearned
come. Thus, the right to private ownership was denied.
compliance with these provisions of Article 292 of the Civil Code it was established that it is allowed to take
terest according to loan contract only
cases prescribed by laws. The Supreme Council of the Republic of Lithuania by 11 March 1991 Act has restored
dependent State of Lithuania and on the same day confirmed the Provisional Basic Law of the Republic of Lithuania.
of this Law it was stipulated that the economy of Lithuania shall be based on the property of the Republic of Lithuania, which shall consist of the private property of its citizens, the property of groups of citizens, and state property.
of the 1992 Constitution it is established that Lithuania's economy shall be based on the right to private ownership, freedom of
dividual economic activity, and
itiative. Thus, by these constitutional provisions, the right to private ownership has found its way back
to the legal system of the state.
of the Constitution of the Republic of Lithuania it is set forth that property shall be
violable, the rights of ownership shall be protected by law. That means the right of the owner to manage, use and dispose of this property and the duty of other
dividuals to restrain from behaviour violating ownership rights. The implementation of property owner's rights is also guaranteed by the freedom of
dividual economic activity and
itiative which are established
the first part of Article 46 of the Constitution. Thus, the property owner does not only have the right to freely use his property and to gain profit but also to delegate his rights to other
dividuals by way of contracts. Therefore, contracts may be concluded which would ensure use of property (e. g. contract of
surance), confirm management of property (e. g. lease contract), certify disposal of property (e. g. contract of purchase). The freedom of making contracts means that contracting parties of their free own will shall establish mutual rights and duties. One of the forms of civil contracts is a loan contract. By the loan contract a loan giver transfers
to the ownership of a loan borrower the money or other articles defined by characteristics of sort and the loan borrower takes the responsibility of repayment to the loan giver the same sum of money or the same amount of articles of the same kind and quality for compensation or without it. The right to getting payment according to loan contract was already established
Roman civil law. Subsequently, this right was
terpreted
various ways, however, it has survived
modern civil law which is based on private ownership. Thus,
compliance with traditions of civil law, the contracting parties may agree about the compensation (
terest). The freedom of concluding contracts, similarly to property rights, has certain limits. While implementing his rights and exercising freedoms, an
dividual must observe the Constitution and the laws of the Republic of Lithuania, and must not impair the rights and
terests of other people (Article 28 of the Constitution). Thus,
terms of protecting the rights of a loan borrower, there might be restrictions
the amount of compensation (
terest) which, by the way, have been applied since the times of Roman civil law.
the third part of Article 46 of the Constitution it is established that the State shall regulate economic activity so that it serves the general welfare of the people. Thus, when a person, while exercising property rights, takes part
economic activity, he becomes one of special entities of economic relations, and then special restrictions prescribed by laws may be applied to him. However, even such entities according to their status may freely conclude contracts. Thus, said restrictions do not deny the principle of freedom
concluding contracts. The provision of Article 292 of the Civil Code establishing, that according to loan contract it is permissible to take
terest only
cases prescribed by laws, actually means prohibition to freely conclude contracts and, hereby, restricts the rights of private property owner and other persons, their economic freedom and
itiative, therefore, this Article contradicts the first part of Article 46 of the Constitution of the Republic of Lithuania. Conforming to Article 102 of the Constitution of the Republic of Lithuania as well as Articles 53, 54, 55 and 56 of the Law on the Constitutional Court of the Republic of Lithuania, the Constitutional Court of the Republic of Lithuania has taken the following ruling : To recognize that Article 292 of the Civil Code of the Republic of Lithuania contradicts the first part of Article 46 of the Constitution of the Republic of Lithuania. This Constitutional Court ruling is final and not subject to appeal. The ruling is promulgated on behalf of the Republic of Lithuania. Justices of the Constitutional Court: Algirdas Gailiūnas Kęstutis Lapinskas Zigmas Levickis Pranas Vytautas Rasimavičius Stasys Stačiokas Teodora Staugaitienė Stasys Šedbras Juozas Žilys
DI paaiškinimas pagal oficialų įstatymo tekstą. Orientacinis, nepakeičia teisinės konsultacijos.