Interpretative decision № 5/2014 of 24.06.2016 of the SCC

Interpretative decision № 5/2014 of 24.06.2016 of the SCC

Interpretative decision № 5/2014 of 24.06.2016 of the Supreme Court of Cassation of the Republic of Bulgaria

 

          The General Assembly of the Civil College of the Supreme Court of Cassation has adopted an interpretative decision regarding controversial case law in matters relating to housing cooperatives, condominiums and the claims under Art. 31, Para. 2 of the Property Act.

          During the effect of the prohibition established by Art. 31, Para. 3 of the Law on Cooperatives of 1991 /Prom., SG., 63 of 1991/, repealed by the Cooperatives Act of 1999 /Prom., SG., 113 of 1999/ the right of ownership over property owned by a housing cooperative may be acquired through prescription. Art. 31, Para. 3 of the Law on Cooperatives of 1991 provides that property which is owned by a cooperative may not be acquired through prescription.

          A housing cooperative is not legitimated to claim compensation under Art. 59, Para. 1 of the Law on Obligations and Contracts for depriving itself of the opportunity to use its own property allocated to a member of the cooperative. Art. 59, Para. 1 of the Law on Obligations and Contracts provides that whoever has enriched himself without reason at the expense of another is liable for the return of the enrichment, up to the amount of the other person's loss.

          The request for suspension of the execution of a decision of the General Meeting of condominium /Art. 40, Para. 3 of the Law on Condominium Management/ is subject to examination by the order of the security proceedings. The ruling whereby the court rules on such a request is subject to appeal pursuant to the appeal of collaterals.

          The provision of Art. 31, Para. 2 of the Property Act is applicable to joint matrimonial property when during an actual separation, the common estate is only used by one of the spouses. Art. 31, Para. 2 of the Property Act provides that where the common property is used personally only by some of the joint owners, they owe compensation to the remaining joint owners for the benefits of which the latter are deprived from the date of written request.