The tenant, a farm enterprise, is suing the city council with a demand to recognize the land lease agreement as concluded for a new term, as it believes it has a preferential right to do so.
The court of cassation emphasized that the tenant properly notified the lessor of its intention to conclude a lease agreement for a new term, attached a draft agreement, and the case file does not contain evidence that the city council notified the tenant of the impossibility of reaching an agreement on the rent or other terms of the agreement. Also, the court noted that the land user is a farm enterprise, for which land is the main means of production and an object of state support. The court also noted that the lessor’s inaction regarding negotiations and agreement on essential terms is a violation of the tenant’s rights. The court departed from the previous position, according to which a decision of the local self-government body is mandatory for the renewal of the lease agreement.
The Supreme Court overturned the appellate court’s ruling and upheld the decision of the court of first instance to satisfy the farm enterprise’s claim, recognizing the lease agreement as concluded for a new term.
