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20.02.2020

How to save half a million hryvnia?

KODEX lawyers proved the illegality of initiation of enforcement proceedings of the collection of nearly half a million UAH and seizure of client’s funds and property.

The client addressed KODEX after she had been fined by officials of the Main Department of State Service of Ukraine on Labor for non-admission for inspection. After a thorough analysis of the case file, KODEX lawyers prepared and filed a lawsuit in the administrative court demanding to declare the decision of the State Service of Ukraine on Labor to impose a fine unlawful.

However, due to existing caseloads of the courts, the consideration of this case was delayed and before the end of the proceedings, the State Service of Ukraine on Labor filed an application to Executive Service for enforcement the decision to impose a fine.

As a result, our client’s funds and property were seized and also there were high risks of foreclosure.

KODEX lawyers immediately prepared and filed an application for securing a claim by suspending foreclosure on the basis of executive document. Also KODEX lawyers filed a lawsuit on the declaring illegal and cancellation of the decision to commence enforcement proceedings. The first application is necessary in order to stop the enforcement of a fine, unless this is done the decision to impose a fine may be enforced by a state executor in a compulsory manner, even before the judgement of cancellation of the decision to commence enforcement proceedings will be delivered. That could have led to charging of funds from the client`s bank accounts as well as to disposal of property. In such case, the return of funds and property could have become quite a difficult process.

The Kyiv District Administrative Court granted an application for securing a claim and stopped the enforcement of the decision of the Main Department State Service on Labor of Ukraine to impose a fine. That means that a threat of writing-of funds from client`s account and a risk of disposal of her property disappeared until the end of proceedings.

After that, The Kyiv District Administrative Court sustained a claim filed by KODEX lawyers. The decision to commence enforcement proceedings was cancelled because the Main Department of the State Service on Labor of Ukraine failed to prove that the commencement of the implementation of the decision took place on time. They alleged, the decision to impose a fine had been sent with the cover letter dated May 17, 2019, but the decision to open enforcement proceedings was issued only six months later - on November 19, 2019. At the same time, there was no document confirming that the decision on imposition a fine was submitted for execution in time, neither the executive service nor the State Service of Ukraine on Labor provided such evidence.

Thus, the Kyiv District Administrative Court rightly granted the claim filed by KODEX lawyers and canceled the decision to open enforcement proceedings.

As a result, The Main Department of the State Service on Labor of Ukraine will be able to resubmit the decision on imposing a fine to execution only if the term for such resubmission will be restored in court. The validity of the excuse for failure to submit the decision it time should be proved in court.