Here is a detailed analysis of the court decision in case No. 916/3908/24:
1. **Subject matter of the dispute:** Recovery of land lease rent arrears, termination of the lease agreement, and obligation of the lessee to return the land plot to the lessor.
2. **Court’s arguments:**
* The court established that during the period from 01.03.2022 to 05.05.2023, the lessee was exempted from paying rent pursuant to Subparagraph 69.14 of Paragraph 69 of Subsection 10 of Section XX of the Tax Code of Ukraine, as the territory of the Zatoka urban-type settlement was included in the list of territories where hostilities were conducted, and the version of the law at that time did not provide for a differentiation between “active” or “possible” hostilities.
* The Supreme Court rejected the arguments that subsequent amendments to the legislation (Law No. 3050-IX) have retroactive effect, noting that they cannot worsen the taxpayer’s position for past periods.
* Regarding the termination of the agreement, the court applied the legal position of the Grand Chamber of the Supreme Court (case No. 918/391/23), according to which systemic (two or more instances) complete non-payment of rent constitutes an independent ground for termination of the agreement under Clause “d” of Part 1 of Article 141 of the Land Code of Ukraine.
* The court emphasized that subsequent repayment of the debt by the lessee does not refute the fact of the previously committed systemic breach of the terms of the agreement; therefore, it does not release the lessee from liability in the form of termination of the agreement.
* Regarding the recovery of debt, the court agreed with the appellate instance that since the lessee independently determined the purpose of payments in the payment instructions, the lessor had no right to unilaterally change them, and the total amount of paid funds covered the accruals for the period when the benefit was no longer in effect.
* **Legal precedent:** In its decision, the court explicitly refers to the necessity of applying the conclusions of the Grand Chamber of the Supreme Court set forth in the resolution dated 20.11.2024 in case No. 918/391/23 regarding the interpretation of the concept of “non-payment” and the application of the special provision of Article 141 of the Land Code of Ukraine as an independent ground for termination of the agreement, which is mandatory for consideration.
3. **Court’s decision:** The Supreme Court partially satisfied the cassation appeal: it set aside the appellate court’s decision in the part concerning the refusal to terminate the agreement and return the land, upholding the decision of the court of first instance in this part, and regarding the recovery of funds, it left the appellate court’s decision unchanged.
