The proper defendant in a case on recognition of a contract for the sale and purchase of a communal land plot as concluded is a local self-government body, not its executive body - SC GC

The proper defendant in the case of the buyer's claim for recognition of the agreement for sale and purchase of the communal land plot in accordance with Articles 127, 128 of the Land Code of Ukraine is the local self-government body exercising the powers of the owner of this land plot on behalf of the territorial community in accordance with the law, even if it decides to authorise the executive body to conclude the agreement, as the executive body does not acquire the powers of the owner of such land plot upon such authorisation.

This conclusion was made by the Grand Chamber of the Supreme Court.

An LLC filed a lawsuit against the executive body of a city council to recognise the land sale and purchase agreement as concluded in the wording proposed by the company. The plaintiff argued that the defendant was obliged to enter into this agreement with the plaintiff pursuant to the decision of the city council to privatise the non-agricultural land plot by way of redemption.

The courts of previous instances satisfied the claim.

In his cassation appeal, the defendant argued that the proper defendant in this case was the city council, which had made the decision to sell the land plot.

Upon consideration of the case, the Grand Chamber of the Supreme Court overturned the decisions of the courts of previous instances and dismissed the claim on the grounds that it was filed against the improper defendant.

The SC Grand Chamber stated that in a case on recognition of an agreement as concluded (obligation to conclude an agreement), the plaintiff is a person wishing to enter into an agreement, and the defendant must be a party to the agreement that refuses to enter into an agreement, thereby violating the plaintiff's rights.

A party to an agreement for the sale and purchase of a municipally owned land plot, which is concluded in accordance with Articles 127 and 128 of the Land Code of Ukraine, is a territorial community represented by the relevant local self-government body.

Thus, the proper defendant in a case involving a buyer's claim for recognition of a municipally owned land plot sale and purchase agreement as concluded is a territorial community represented by a local self-government body that, in accordance with the law, exercises the powers of the owner of the land plot on behalf of the territorial community.

The decision of a local self-government body to authorise its executive body to conclude (execute, sign) an agreement does not change the composition of the parties to such a dispute, since, given this authorisation, the representative does not acquire the powers of the land plot owner.

Thus, since the parties to the sale and purchase agreement for a municipally owned land plot are the local community represented by the city council and the LLC (the plaintiff), it is the city council, not its executive body, that is the proper defendant in a dispute over the recognition of the sale and purchase agreement as concluded.

Resolution of the Grand Chamber of the Supreme Court of 18 December 2024 in case No. 907/825/22 (proceedings No. 12-13гс24) - https://reyestr.court.gov.ua/Review/124662906.

This and other legal opinions of the Supreme Court are available in the Database of Legal Positions of the Supreme Court - https://lpd.court.gov.ua.