22.01.2021

The Plenum of the Constitutional Court of the Republic of Azerbaijan, chaired by Farhad Abdullayev, held its regular session via the written procedure of special constitutional proceedings.

At the court session was examined the constitutional case based on the request submitted by the Court of Appeal of Baku city on interpretation of some provisions of Articles 747.1, 747-1.3 и 747-2 of the Civil Code of the Republic of Azerbaijan.

Having heard the report of Judge R. Gvaladze, studied and discussed written reports of representatives of interested parties – Acting chairman of the Court of Appeal of Baku city Z.Rahimov, Head of the Economic and Social Legislation Department of the Staff Office of Milli Majlis M.Bazigov, written opinions of specialist – Presidium of Bar Council of the Republic of Azerbaijan and Association of Banks of Azerbaijan also with the opinion of the expert - head of the Department of Law of the National Aviation Academy, Doctor of Law A.Rustamzadeh, the Plenum of Constitutional Court of the Republic of Azerbaijan adopted decision.

The decision states that, in accordance with the requirements of Articles 747.1, 747-1.3 and 747-2 of the Civil Code of the Republic of Azerbaijan and the definition of the concept of fixed assets given in Articles 13.2.17 and 114 of the Tax Code of the Republic of Azerbaijan, it is not excluded that the living space, including the apartment, is the object of the leasing agreement as a fixed asset and the leasing object is transferred to a legal entity or individual who is not engaged in entrepreneurial activity.

According to the requirements of articles 747.1 and 747-2 of the Civil Code of the Republic of Azerbaijan, as well as the legal positions of the descriptive-substantiating part of this Decision, it is indicated that the lease agreement cannot be covered by a loan agreement, because unlike a loan agreement, the subject of the lease agreement is not money, but certain property.

The decision comes into force from the date of its publication, is final, and may not be cancelled, changed or officially interpreted by any institution or official.