Supreme Court Found Illegal the Resolution of the Government on Consumer Basket

The Resolution of the Cabinet of Ministers of Ukraine No. 780 of 11 October 2016 "On the Approval of Food Sets, Sets of Non–Food Products and Sets of Services for Major Social and Demographic Groups of Population" was found illegal. The main reason for such a decision of the Court is represented by the participation of unauthorized individuals in commission sessions.

Claimant applied to court with a claim on the recognition of the Resolution of the Cabinet of Ministers of Ukraine No. 780 of 11 October 2016 "On the Approval of Food Sets, Sets of Non–Food Products and Sets of Services for Major Social and Demographic Groups of Population" as illegal, the recognition of the actions of the Ministry of Social Policy of Ukraine, the Ministry of Health of Ukraine, the Ministry of Economic Development and Trade of Ukraine regarding the formation of relevant minimal sets of food, non-food products and services as unlawful.

The first instance court satisfied the claim on the grounds of the violation of the composition of expert commission holding scientific and civil examination of relevant sets. The appeal court confirmed the judgment.

The respondents applied to the Supreme Court with cassation appeals.

On 20 December 2012 the Supreme Court partially satisfied cassation appeals. The judgments of previous courts were cancelled with respect to the satisfaction of the claim on the recognition of the actions of the Ministry of Social Policy of Ukraine, the Ministry of Health of Ukraine, the Ministry of Economic Development and Trade of Ukraine as unlawful, since such actions do not have independent legal significance. In this part the claim was dismissed.

At the same time the Court upheld the judgments of previous courts on the recognition of the Resolution of the Cabinet of Ministers of Ukraine No. 780 of 11 October 2016 "On the Approval of Food Sets, Sets of Non–Food Products and Sets of Services for Major Social and Demographic Groups of Population" as illegal due to the violation of the procedure of holding scientific and civil examination provided by the Resolution of the Cabinet of Ministers of Ukraine No. 1767 of 24 September 1999.

This procedure provides that the presentation and protection of the formed food set, set of non-food products and set of services on the session of expert group shall be held by central bodies of the executive power, which are liable for their formation.

The examination shall be held by expert commission composed of 12 individuals, including four representatives of central bodies of the executive power, employers' associations and employees’ associations with all-Ukrainian status.

First deputies (deputies) of the Minister of Social Policy, the Minister of Economic Development and Trade, the Minister of Finances, the Minister of Health determined pursuant to the decrees of chairpersons of relevant central bodies of the executive power shall be the representatives of central bodies of the executive power in the expert commission.

Members of the expert commission on behalf of employers' associations and employees’ associations with all-Ukrainian status shall be determined by each party by separate decisions.

If a member of the expert commission is not able to participate in the session for serious cause, the relevant body shall appoint another representative provided with all authority of the member of the expert commission. Thus, if first deputies minister of relevant ministries are not able to participate in the commission activity for serious cause, these state bodies shall be authorized to appoint another representative.

The Supreme Court found that changing a representative of the expert commission shall be held in the form of executive directive determined by provisions on relevant ministries. Letters signed by functionaries and letters of authority from functionaries as for the delegation of powers for the participation in the session providing other individuals with the right to vote shall not be the appropriate evidence of their authority. The participation of unauthorized individuals led to the adoption of wrong decisions by the commission and subsequently by the Cabinet of Ministers of Ukraine.

Follow the link http://www.reyestr.court.gov.ua/Review/78771927?fbclid=IwAR2idaw1bns2iNHD4raGCMtXzXRWlZ_YptRNzz3yh2pt8VJfkg046B0ilwI to see the Resolution of the Administrative Cassation Court within the Supreme Court.