Below is a detailed analysis of the court decision, prepared from a professional perspective:
1. **Subject Matter of the Dispute:** Challenging the legality of the actions of the Regional Branch of the State Property Fund regarding the appointment and conduct of an inspection of the use of state property, as well as the inaction of the authority during the consideration of objections to the report of such an inspection.
2. **Court Arguments:**
– The Supreme Court emphasized that the courts of lower instances approached the case formally, failing to examine key evidence regarding the legal status of the unfinished construction object and its presence on the plaintiff’s balance sheet.
– The courts did not assess numerous documents indicating the potential transfer of the object to communal ownership, which fundamentally changes the State Property Fund’s authority regarding the control of this property.
– An important aspect was the application of the Law of Ukraine “On Administrative Procedure,” which requires government authorities to adhere to a clear procedure for considering objections, specifically by ensuring collegial consideration rather than unilateral decision-making by officials.
– The Court emphasized that a violation of procedural guarantees established by law constitutes an independent ground for recognizing the actions of an authority as unlawful, as it directly affects an individual’s rights.
– The Supreme Court noted that the courts failed to verify the respondent’s compliance with the inspection plan and schedule, which is a mandatory element of the legality of inspection activities.
– Since the courts did not establish the factual circumstances as to whether the property was on the plaintiff’s balance sheet at the time of the inspection, the decisions of the lower courts were deemed premature and based on an incomplete examination of the case materials.
– The Supreme Court in this case emphasizes the necessity of applying the provisions of the Law of Ukraine “On Administrative Procedure” to public law relations in the sphere of state property management, which changes the approach to assessing procedural violations by subjects of authority compared to previous practice, where the focus was primarily on substantive legal aspects.
3. **Court Decision:** The Supreme Court set aside the decisions of the courts of first and appellate instances and remanded the case for a new trial to the court of first instance.
