SUPREME  COURT OF THE RUSSIAN FEDERATION

 

                                    Case No. 78-D01-21

 

                                    D E C I S I O N

 

     The Panel of Judges for Civil Affairs of the Supreme Court of the Russian Federation

 

in the persons of the Supervising Chairman                    G.V. Manokhina

and the Judges                                                             N.K. Tolcheev

                                                                                    V.B. Khamenkov

 

     in open session of Court from 24 May 2001 has reviewed the civil case opened upon appeal by the Prosecutor of St. Petersburg and the Chief Ministry of Justice of the Russian Federation for St. Petersburg and the Leningradskaya Oblast calling for the liquidation of the public association "St. Petersburg Collegiate Association for the Research of the Principle (Unification Philosophy)"; and the appeal by the same association calling for the refusal of its reregistration to be declared unlawful and demanding that its reregistration be carried out forthwith;

     upon appeal in a protest suit filed by the Prosecutor of St. Petersburg and upon the appeal by the Chief Ministry of Justice of the Russian Federation for St. Petersburg and Leningradskaya Oblast challenging the decision of 16 March 2001 of the St. Petersburg Municipal Court, in which the Court refused to satisfy the appeals filed, and the position of the public association was upheld.

     Hearing the report by Justice N.K. Tolcheev of the Supreme Court of the Russian Federation; the explanations by the representatives of the Chief Ministry of Justice of the Russian Federation for St. Petersburg and Leningradskaya Oblast, O.S. Chetverikova and V.M. Maigeldinov, supporting the arguments on the side of the plaintiffs; the lawyer G.S. Krylova, representing the public association "St. Petersburg Collegiate Association for the Research of the Principle (Unification Philosophy)" and defending it against the protest suit and the appeals filed; and the conclusion of the Prosecutor of the Office of the General Prosecutor of the Russian Federation, M.M. Germasheva, in support of the protest suit and the appeal; the panel of Judges has

 

                                    E S T A B L I S H E D

 

the following:

     In 1996 the Prosecutor of St. Petersburg, in defense of the national and social interest, appealed to the court with a petition to liquidate the regional public association "Collegiate Association for the Research of the Principle (Unification Philosophy)" (hereafter known as "CARP"), whose Charter was registered in the Department of Justice of the Mayor of St. Petersburg on 9 December 1991 (Registration No. 327), on the grounds of violation of the law and other legal statutes, specifically, its own Charter (Section 3: "Membership in the Association", Section 5: "Financial Assets of the Association", Section 6: "Supervisory and Regulatory Bodies") and Articles 19 and 20 of the Federal Law "On Public Associations".

     In 1999 the Ministry of Justice of St. Petersburg, the legal successor of which is now the Chief Ministry of Justice of the Russian Federation for St. Petersburg and Leningradskaya Oblast, likewise appealed with a demand for liquidation of the said public association, claiming that it had not completed reregistration within the legally required time period.

     CARP appealed to the St. Petersburg Municipal Court claiming that the refusal by the Office of Registry to reregister CARP was unlawful.

     The St. Petersburg Municipal Court issued the above decision.

     The protest suit filed by the Prosecutor of St. Petersburg and the appeal filed by the Chief Ministry of Justice of the Russian Federation for St. Petersburg and Leningradskaya Oblast raise the issue of changing the decision by virtue of the incorrect application of the norms of the material law (regarding evidence) and the lack of correspondence of the Court's decision to the actual facts of the case.

     Weighing the arguments of the protest suit and the appeal filed, the Panel of Judges for Civil Affairs of the Supreme Court of the Russian Federation finds the decision of the lower court to be legal and well-founded in the point of its refusal to satisfy the claims of the Prosecutor; and, in the other part, to be changed.

     In accordance with Paragraph 4, Part 1, Article 44 of the Federal Law No. 82-FZ of 19 May 1995, amended 19 May 1998, "On Public Associations", in effect as of 22 May 1995, from the day of its issue (see Social Laws of the Russian Federation, 22 May 1995, No. 21, Article 1930), a public association can be liquidated by court decision in the case of repeated or grave noncompliance with the law or other legal statutes, or else in the case of systematic activities of the public organization which contradict the goals and purposes stated in its Charter.

     In terms of the grounds for liquidation of CARP stated in the appeal of the Prosecutor and in his protest suit, it is indicated that the said public association, in the period from 1994 to 18 March 1996, i.e., up until the date when it filed its appeal in the St. Petersburg Municipal Court, in violation of Sections 3, 5 and 6 of its own Charter, did not resolve the questions of admitting members to or excluding them from its constituency at its public assemblies, as stipulated in its Charter; nor did it handle the confirmation of its membership; the governing bodies of the organization did not in fact lead the organization; general assemblies were not held at the required intervals; the governing body, executive and vice-director were not elected; the advisory committee did not function; the members of CARP were not informed of the financial assets of the organization and how they were being spent.

     Likewise, in the opinion of the Prosecutor, during that period there were violations of Articles 19 and 20 of the Federal Law "On Public Associations", to wit, participation in the activities of CARP by minors, and the conduct of religious activities by the organization.

     As established by the Court of the First Instance, in fact during the period prior to 1996, CARP committed a series of violations of the type of inadequate and improper records of the minutes of its public meetings and its governing board, reports by its advisory and regulatory committees, accounts of income and expenses, and bookkeeping balance sheets.

     Evaluating the violations which have appeared, the lower court with good reason came to the conclusion that the errors and inadequacies in conducting its affairs and the activities of its ruling bodies cannot be considered as sufficient grounds for liquidating the organization.

     After subsequent warning, the public organization corrected the violations on its own accord in the area of instituting membership in the organization, and at the present time the director of the organization has been elected according to the prescribed procedure. Those aspects of a religious nature among its activities, not provided for within its Charter, have also been discontinued by the CARP organization.

     The conclusions of the lower court are based upon evidence, research, and evaluations in accordance with the rules as outlined in Article 56 of the Civil Procedures Code of the Russian Federation of Soviet Socialist Republics, in correspondence with the facts of this case. There is no basis for a different evaluation of the evidence, such as presented in the arguments of the appeal. Evidence of alleged religious activities by CARP following the warning issued, such as which would warrant the conclusion that this public association is systematically conducting activities which do not correspond to the purposes and tasks outlined in its Charter, has not been presented to the court; and this does not support the conclusions drawn within the contents of the appeal regarding concrete facts and evidence of the carrying out of such activities.

     In light of these facts, the liquidation suit of CARP was rightly rejected, in which it was alleged that the public association had repeatedly or gravely violated the law or legal statutes, and systematically conducted activities contradictory to the goals of its Charter (Part 1, Article 44 of the Federal Law "On Public Associations").

     At the same time, we cannot agree with the decision of the lower court in the point of rejecting the liquidation of CARP on the basis of Part 3, Article 52 of the Federal Law "On Public Associations", according to which public associations created before the present Federal Law came into effect must reregister with the government no later than 1 July 1999 and are exempt from the registration fee. For such public associations, Part 6 Article 21 of the present Federal Law, calling for the submission of the founding documents for governmental registration within 3 months from the day of the founding session, conference or general assembly, is not applicable. Upon the expiration of the required period for reregistration, those public associations which have not completed reregistration are subject to liquidation according to the prescribed legal procedure upon the request of the Office of Registry which originally registered the said public association.

     The public association "St. Petersburg Collegiate Association for the Research of the Principle (Unification Philosophy)" did not complete its reregistration within the required time period, and therefore is subject to liquidation.

     The fact of applying for reregistration within the required period, alone, does not mean that the organization has fulfilled its responsibilities in compliance with the stipulations of the Law.

     CARP was not deprived of the opportunity to file for legal protection and to contest the issue during the period specified in Article 239-5 of the Civil Procedures Code of the Russian Federation of Soviet Socialist Republics, if it considered the rejection of its reregistration bid to be unlawful. Up to the present time, no refusal by the Office of Registry to reregister any public association has been contested in court, with the exception of the refusal on 7 October 1999 of the application by CARP on 23 June 1999.

     Meanwhile, the fact of the application by CARP to the Office of Registry does not constitute evidence that the public association has fulfilled its obligations regarding reregistration independently from the reasons for which its reregistration was denied. The Law defines the period within which the public association must accomplish reregistration, not only apply for such.

     Reregistration of CARP had not been granted by 1 July 1999 for its application on 23 June 1999. This fact cannot be regarded as unlawful, since according to Part 1 Article 22 of the Federal Law "On Public Associations" the Office of Registry must be given the period of one month to review the application for reregistration of a public association and reach its decision. Upon the date of expiration of the period required to reregister public associations, the one-month period required for review of the application of CARP had not yet expired.

     The Law places responsibility for reregistration by the required date not upon the Office of Registry, but upon the public association; therefore CARP should have allowed ample time for completion of the appropriate requirements and preparation of all necessary documents, taking into account the period needed for review of its application by the Office of Registry and the decision of its reregistration.

     Thus CARP did not fulfill the requirements of the Law regarding reregistration by 1 July 1999, and consequently the lower court was not legally justified in demanding that the Office of Registry fulfill its obligations to reregister CARP.

     The conclusion of the lower court did not correspond to the facts of the case in the matter of the refusal by the Office of Registry to reregister CARP.

     According to Article 23 of the Federal Law "On Public Associations", a public association may be denied government registration if the Charter of the public association contradicts the Constitution of the Russian Federation, the constitutions or charters of the subjects of the Russian Federation, Articles 16, 19, 20 or 21 of the present Federal Law, or the statutes regarding independent public associations.

     Part 1 Article 19 of the above Federal Law specifies that leaders, members and participants of public associations must be citizens of 18 years old and above; and if a public association, as a juridical person, is constituted otherwise, then it is not considered as valid before the existing Federal Law and the statutes regarding independent public associations.

     In Part 3 of the same Article it is stipulated that citizens of 14 years old and up may be members or participants of public youth associations.

     The Charter of "Collegiate Association for the Research of the Principle (Unification Philosophy)" as submitted for reregistration contains no indication that it is a youth organization (see Section 6 lines 135-136). On the other hand, if its Charter did include such a clause, then in order for CARP to be registered as a youth organization, it would then be required to present to the Office of Registry information showing that CARP is in compliance with Part 11 Article 21 of the Federal Law, in electing to its governing bodies only those citizens who have reached the age of 18 years old or over.

     In fact, since CARP is not a public youth association, therefore its leaders, members and participants can only be citizens of at least 18 years of age and above.

     According to Paragraph 3.1 of the Charter submitted for registration, the members of the Association must be citizens of the Russian Federation who are enrolled in middle and higher educational institutions, teachers or directors of such educational institutions.

     Upon considering possible scenarios, the Court of the First Instance drew the reasonable conclusion that Paragraph 3.1 of the Charter of Collegiate Association for the Research of the Principle (Unification Philosophy) allows for the possibility of minors being included in CARP membership.

     In this way, Paragraph 3.1 of the Charter as submitted for reregistration allows minors to be members of the public association (which is not a youth organization), in violation of Part 1 Article 19 of the Federal Law. In this connection and upon such a grounds, the denial of reregistration by the Office of Registry is valid.

     According to Part 6 Article 21 of the Federal Law, in order to register a public association, among other things, a document must be submitted establishing the legal address of the public association.

     CARP did not submit a document establishing the right of the organization to dispose of the location indicated as its juridical address in its Writ of Guarantee. Without such a document, the letter submitted cannot serve as proof of the legality of the given address. These circumstances likewise constitute grounds for denial of reregistration. Nevertheless, in its decision regarding the denial of reregistration, the lower court left this point unaddressed.

     Among the materials submitted to the lower court in this case, there is no evidence of the submission of such a document. Accordingly the refusal of reregistration on these grounds may not be considered as unlawful.

     Furthermore, there are various unclear or indeterminate points, as well as editorial oversights, in the Charter, as referred to in the statement of conclusion of the Office of Registry, which in sum total, together with the violations above, likewise hindered the reregistration of CARP. CARP was obliged to bring its Charter into conformity with the Federal Law by the day the Law went into effect, at its next session, conference or general assembly (see Part 2 Article 52 of the Federal Law).

     Taking into account all the above, the decision of the lower court in the matters which it addressed cannot be deemed valid and stands to be rescinded; and a new decision must be issued in these points, in light of the fact that the circumstances pertinent to the case had been determined on the basis of the materials in possession of and familiar to both sides in the case.

     According to the guidelines of Paragraph 3 Article 305 of the Civil Procedures Code of the Russian Federation of Soviet Socialist Republics, the Panel of Judges

 

                                    D E T E R M I N E D

 

     that the decision of 16 March 2001 by the St. Petersburg Municipal Court rejecting the petition for satisfaction of the appeal by the Chief Ministry of Justice of the Russian Federation for St. Petersburg and Leningradskaya Oblast for liquidation of the public association "St. Petersburg Collegiate Association for the Research of the Principle (Unification Philosophy)" and satisfying the demand by this public association that the refusal of its reregistration be declared unlawful and obliging the reregistration to be carried forward to completion, is to be reversed.

     A new decision is to be produced in the first part, by which the appeal of the Chief Ministry of Justice of the Russian Federation for St. Petersburg and Leningradskaya Oblast is to be satisfied, that is, to liquidate the public association "Collegiate Association for the Research of the Principle (Unification Philosophy)"; and rejecting the appeal of this public association for declaring the refusal of its reregistration to be unlawful and for obliging the reregistration process to proceed forthwith.

     In the remaining part, the decision of the lower court is to remain standing without change; but the protest suit filed by the Prosecutor of St. Petersburg is rejected.

 

 

                                                Supervisor:                G.V. Manokhina

 

                                                Judges:                        N.K. Tolcheev

                                                                                    V.B. Khamenkov

 

 

Certified copy:

Acting Counselor of the Supreme Court of RF:            N.A. Erofeeva

 

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END OF TEXT

Translated from Russian by W. Stoertz

Publications Department, Moscow

20 June 2001