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The Constitutional Court took a Decision «On Legal Regulation of Liability for Nonfulfilment of Monetary Obligation»

On October 31, 2012 the Constitutional Court of the Republic of Belarus took a Decision «On Legal Regulation of Liability for Nonfulfilment of Monetary Obligation» (reporting judge – Liliya G. Kozyreva). It was noted that the right of creditor in monetary obligation to demand compensation from the debtor of the sum of the debt, increased for inflation in part, exceeding the amount of interest owed to him pursuant to point 1 of Article 366, is stated in point 2 of Article 366 of the Civil Code. However, the implementation of this right of the creditor is not provided with the proper legislative regulation, which resulted in legal uncertainty for participants of civil legal relations.

In order to provide the constitutional principles of the rule of law and equality before the law the Constitutional Court recognized the need to eliminate the legal uncertainty in point 2 of Article 366 of the Civil Code of the Republic of Belarus by providing the possibility of compensation of the sum of the debt, increased for inflation in part, exceeding the amount of interest owed to debtor pursuant to point 1 of Article 366, with use of indexing in cases, provided by legislation or contract.

The Constitutional Court offered to the Council of Ministers of the Republic of Belarus to prepare in the established order the draft law on making the appropriate alterations and addenda to the Civil Code of the Republic of Belarus.