04.03.2022

Plenum of the Constitutional Court of the Republic of Azerbaijan, chaired by Farhad Abdullayev, held a 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 Balaken District Court on related interpretation of Article 375.2 of the Civil Code of the Republic of Azerbaijan and Article 48.1.2 of the Law of the Republic of Azerbaijan “On Mortgage”.

Having heard the report of Judge K.Shafiyev, studied and discussed reports of representatives of interested parties – Judge of Balaken District Court Z.Tahirov and Head of the Economic Legislation Department of the Milli Majlis (Parliament) M.Bazigov, conclusions of specialists – Chairman of Civil Board of the Supreme Court S.Hajiyev, Judge of the Court of Appeal of Baku city R.Hasanov, Director General of the Central Bank R.Orujov and President of the Azerbaijan Banks Association Z.Nuriyev, opinion of experts – associate professor of the Department of Civil Law, Faculty of Law, Baku State University, Doctor of Philosophy in Law S.Suleymanli the Plenum of Constitutional Court of the Republic of Azerbaijan adopted decision.

The decision states that according to Article 376 of the Civil Code of the Republic of Azerbaijan, in case of expiry of the period of limitation as a result of the application of Article 375.2 of this Code in respect of principal claim, the period of limitation in respect of additional claims shall also expire.

In accordance with Article 269 of the Civil Code of the Republic of Azerbaijan, since the mortgagee has a limited right of ownership over the property, the expiration of the period of limitation on the main claim does not lead to the termination of the mortgage and the release of the subject of the mortgage from encumbrances.

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.