Plenum of the Constitutional Court examined the constitutional case on related interpretation of Articles 81.1 and 81.3 of the Law "On Banks" with Articles 131 and 132 of the Administrative Procedural Code

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2023 Jul

26.07.2023

Plenum of the Constitutional Court of the Republic of Azerbaijan, chaired by Farhad Abdullayev, held a regular session.

At the court session was examined the constitutional case based on the application of the Baku Court of Appeal on related interpretation of Articles 81.1 and 81.3 of the Law "On Banks" with Articles 131 and 132 of the Administrative Procedural Code.

Having heard the report of Judge K.Shafiyev, studied and discussed report of interested party – Baku Court of Appeal and the Administrative Office of the Milli Majlis (Parliament); conclusions of specialists – Supreme Court, Central Bank, Bar Association, Deposit Insurance Fund and Azerbaijan Banks Association; opinion of expert – Professor of the Department of Constitutional Law of the Faculty of Law of Baku State University, Doctor of Law S.Aliyev, the Plenum of Constitutional Court of the Republic of Azerbaijan adopted decision.

The decision states that Article 81 of the Law of the Republic of Azerbaijan "On Banks" regulates the procedure for the realization of assets that are the guarantee of creditors' confirmed claims against the bank and the bank's own claims.

From the point of view of the legal essence of Article 81 of the Law "On Banks," as well as Articles 131 and 132 of the Administrative Procedure Code, the creditor's demand to send a penalty for a mortgage (pledge) belonging to third parties in connection with a violation of the bank's loan obligation in the process of liquidation should be examined not in the order of administrative, but in the civil (claim) proceedings.

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.