Lietuviškai

                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    

                           R U L I N G                           

       On the compliance of item 4 of Part 2 of Article 8        
            and the norm of Part 4 of the Law "On the            
       Procedure and Conditions of the Restoration of the        
       Rights of Ownership to the Existing Real Property"        
       with the Constitution of the Republic of Lithuania        

                    22 December 1995, Vilnius                    

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  Justices  of the Constitutional Court Algirdas
Gailiūnas,    Kęstutis   Lapinskas,   Zigmas   Levickis,   Vladas
Pavilonis,  Pranas  Vytautas  Rasimavičius,  Stasys  Šedbaras and
Juozas Žilys,
     the secretary of the hearing - Daiva Pitrėnaitė,
     the  petitioner  -  the  Seimas members Andrius Kubilius and
Vidmantas  Žiemelis,  representatives of a group of the Seimas of
the Republic of Lithuania members,
     the   party   concerned   -  Alfonsas  Vileita,  the  Seimas
representative,  the  adviser  of  the  Seimas Committee of State
and Law,
     pursuant  to  Part 1, Article 102 of the Constitution of the
Republic  of  Lithuania  and  Part  1,  Article  1  of the Law on
Constitutional  Court  of  the  Republic  of  Lithuania,  in  its
public  hearing  on  14 December 1995 conducted the investigation
of  Case  No.9/95  subsequent  to  the  petition submitted to the
Court  by  a  group  of  the  Seimas of the Republic of Lithuania
members  requesting  to  investigate  if  Article 2 of the 3 July
1995   Law   of  the  Republic  of  Lithuania  "On  Amending  and
Appending   the   Law  of  the  Republic  of  Lithuania  "On  the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership  to  the  Existing  Real Property"", in which Article 8
of  the  18  June  1995  Law of the Republic of Lithuania "On the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership  to  the  Existing  Real  Property"  has been set forth
anew,   is   in  compliance  with  Articles  23  and  29  of  the
Constitution of the Republic of Lithuania.
  
     The Constitutional Court
                        has established:                         

                                I                                
     The  petitioner  -  a group of the Seimas members - requests
to  investigate  if Article 2 of the 3 July 1995 Law "On Amending
and  Appending  the  Law  of  the  Republic  of Lithuania "On the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership  to  the  Existing  Real  Property""  (Official Gazette
"Valstybės  žinios",  No  59-1465),  in which Article 8 of the 18
June   1991   Law   "On  the  Procedure  and  Conditions  of  the
Restoration  of  the  Rights  of  Ownership  to the Existing Real
Property"  (hereinafter  in  the  ruling  referred to as the Law)
has  been  set  forth anew, is in compliance with Articles 23 and
29 of the Constitution.
     In  his  request  the  petitioner indicates that the Supreme
Council  of  the  Republic  of  Lithuania  in  Article  14 of the
passed   Law   enumerated  conditions,  under  which  residential
houses  shall  not  be  returned,  they  shall  be  bought out by
compensating  the  owner  with  equivalent  kind. The list of the
provided  conditions  is exhaustive and final. In all other cases
Article  8  of  the  Law  provides  the  former  owners  with the
freedom  of  choice,  i.e. they may take back a residential house
or  they  may  decide not to take it back and be compensated with
equivalent   kind.   The   Supreme  Council,  having  passed  the
decision  to  restore  the  ownership rights to the former owners
of  residential  houses,  in  the  aforesaid Law consolidated the
right  guaranties  for  tenants  who  reside in houses subject to
restoration.  The  guaranties  are  provided by Article 21 of the
Law,  in  accordance  to which a tenant, who pays rent which does
not  exceed  the  amount established by the Government, might not
be  evicted  from  the  residential house which had been returned
to  the  former owner, if the guaranties for the tenants provided
in  the  aforesaid Article had not been secured. According to the
programme,  prepared  and  carried  out  by the Government, local
governments  had  to  provide  persons who resided in residential
houses  subject  to being returned with a dwelling place or, if a
person  so  requested,  to  allocate,  free  of charge, a plot of
land  for  the  construction of a house and credits on easy terms
for  the  aforesaid  construction.  The aforementioned provisions
of  the  Law had been followed until the elections of the Seimas.
A  part  of the former owners got back residential houses without
violating tenant rights.
     The  Seimas  on  12 January 1993 passed the Law "On Amending
the  Law  "On  the Procedure and Conditions of the Restoration of
the  Rights  of  Ownership  to  the  Existing Real Property"", in
which  Article  8  of the Law was set forth anew. It was provided
in  item  4  of  this Article, that the procedure and time limits
for  the  restoration  of residential houses shall be established
by   the   Government   pursuant   to   the  provision  that  the
residential  houses  shall  be  returned  in  the  case  that the
tenants  who  occupy  houses  subject  to being returned at their
own  free  will  consent to move into the allotted other dwelling
place.  The  Constitutional Court in its 15 June 1994 Ruling held
that  according  to  this  norm  the manner of restoration of the
ownership  rights  to  a residential house (or a portion thereof)
is  determined  by the subjective factor - the consent or refusal
of  tenants  to  move into the allotted dwelling place - which is
established  by  the Law, and not by objective circumstances. The
Constitutional  Court  passed the ruling, that the aforementioned
amendment   of   the   Law   contradicts   Article   23   of  the
Constitution.  In  addition,  the Constitutional Court noted that
"persons  to  whom  ownership  rights  to  residential houses are
being  restored,  had  the  possibility  to  restore  the  actual
houses  under  different  conditions  (after the amendment of the
Law  they  had  to  face  harder  requirements  than in the first
period  of  its  validity).  However, new requirements may not be
applied  to  the existing legal relations with the same contents,
as it would mean violation of person's equality before law".
     The  petitioner  indicates  that  after  the  Constitutional
Court  had  passed  its  15  June 1994 ruling, on 3 July 1995 the
Seimas  amended  the  Law  once again and in Part 2, Article 8 of
the  Law  determined a supplementary condition. It burdens former
owners  or  altogether  puts  a  stop to getting back residential
houses.  Item  4  of  Part  2,  Article 8 of the Law has been set
forth anew as follows:
     "Residential   houses   (or  portions  thereof),  apartments
shall be returned in kind in the case that:
     /.../   4)  the  tenants  who  occupy  houses  (or  portions
thereof),  apartments  subject  to  being  returned  are provided
with  a  dwelling place conforming to the requirements of Article
358 of the Civil Code of the Republic of Lithuania".
     The  essence  of  the  aforesaid amendment is that returning
of   illegally   disseized  property  depends  on  providing  the
tenants  with  some  other  dwelling  place.  The  aforementioned
amendment   of   the   Law  signifies  that  illegally  disseized
property shall not be returned.
     The  Constitutional  Court  in its 15 June 1994 ruling noted
that  new  requirements  may not be applied to the existing legal
relations  with  the same contents, as it would mean violation of
person's  equality  before  law.  Having  adopted  the  aforesaid
amendment  of  the  Law,  the  Seimas  violated this equality, as
certain  persons  have  restored  residential houses, whereas now
some  other  persons  have  to  face  harder requirements. In the
opinion  of  the  petitioner,  getting  back  residential  houses
becomes  dependent  on  individual  local governments. If a local
government  is  able  to  allot  tenants  who  occupy residential
houses  subject  to  being  returned  some  other dwelling place,
then  the  aforesaid  houses  will be returned, but if some other
local  government  has  no such possibilities, residential houses
may  not  be  returned  in  kind.  Hereby  it is confirmed by the
Seimas,  which  set  forth  Part  4,  Article  8  of  the  Law as
follows:  "In  all  other  cases, not specified in Part 2 of this
Article,  the  ownership right to residential houses (or portions
thereof),  to  apartments  shall  be  restored by buying them out
/.../".  This  norm restricts the freedom of choice of the former
owners,  which  was  established  in  the Law until its amendment
and  appending.  Buying  out,  and  later  on  privatisation will
signify  that  a  tenant  becomes a new owner (and that cannot be
treated  as  "public  needs"), but first of all the true owner is
being   deprived   of   his  property.  Therefore  the  aforesaid
amendments  of  the Law violate the principle of inviolability of
property,  as  well  as  the equality of rights of citizens which
are protected by the Constitution.
  
                               II                                
     Replying   the  Constitutional  Court  paper  to  the  party
concerned,  when  the  case  was  being  prepared  for  the Court
hearing,  Pranciškus  Vitkevičius,  the  Chairman  of  the Seimas
Committee  of  State  and  Law,  explained  in  writing  that the
Constitutional   Court   had   investigated   the  compliance  of
appending  and  amendment  of individual Articles or norms of the
Law  with  Article 23 of the Constitution for many a time. Taking
into  consideration  all  historical and social circumstances, in
the  rulings  of  the Constitutional Court the main provisions of
the  continuity  of  private ownership rights and the restoration
of  them  were  formulated.  One of the most important provisions
is  that  the Suprerme Concil of the Republic of Lithuania by the
11  March  1990  Law  "On  the  Reinstatement  of the 12 May 1938
Constitution  of  Lithuania"  renewed  the  validity  of the 1938
Constitution   of   Lithuania   within  the  total  territory  of
Lithuania,  suspended  the  validity  of  the Articles regulating
the   state   governing,  retained  to  be  in  force  Chapter  8
"National  Economy",  and thereby it signified the restitution of
the  institute  of the right of private ownership and in fact its
continuity.  The  Constitutional  Court in its 27 May 1994 ruling
noted  that  "it  is  impossible  to  impartially reconstruct the
complete  former  system  of  property relations which existed in
Lithuania   in   1940".   In   its   8   March  1995  ruling  the
Constitutional  Court  held  that  "One of the main goals of law,
in  the  regard  as  the  way  of  regulation  of social life, is
justice.  It  is  impossible  to  attain  justice  by  satisfying
interests  of  only  one  group  or  one  person  and  by denying
interests  of  others.  While  behaving  one-sidedly,  the humane
purpose  of  law  would  be disregarded and probability of social
conflicts  would  increase".  When  solving  the  ownership right
restoration  problems,  one  should  pursue  the provision of the
preamble  of  the  Constitution  which states that the Lithuanian
nation  strives  for "an open, just, and harmonions civil society
and law-governed State".
     The  initial  norm  of  item  2  of  Part 2, Article 8, that
residential  houses  shall be returned in the case that "tenants,
occupying  houses  subject  to  being  returned,  and  which  are
occupied  by  more  than one family, are familiar with all of the
laws  guaranteeing  their  rights,  and with their option to move
under  the  conditions  proposed  by the local government and set
forth  in  Article  21  of  this  law,  or under other conditions
guaranteed  by  the former owner of the house", was not concrete.
It  satisfied  neither  house owners, nor the tenants who resided
in  the  houses  subject  to  being  returned.  The  House  Owner
Associations   claim  that  the  tenants  who  reside  in  houses
belonging  to  former  owners  should  be evicted unconditionally
and  without  delay,  as  former owners desire to freely possess,
use  and  dispose  of  their property. But presently the state is
not  economically  capable  during  a  short  period  of  time to
provide  all  the  tenants  who reside in houses subject to being
returned with a dwelling place.
     The  chairman  of  the committee points out that the tenants
who  have  rallied the Society of the Homeless, are not satisfied
with  being"  familiar with all of the laws guaranteeing rights",
as  the  owners,  having  got  back  their  houses, take measures
(among  them  illegal  ones  as  well)  to  evict  tenants. Hence
conflict  situations  arise.  The  provision  of Article 8 of the
disputable  Law  is  more  accurate, there is no vagueness of the
previous norm:
     "Residential   houses   (or  portions  thereof),  apartments
shall be returned in kind in the case that:
     /.../  4)  the  tenants  who  live  in  houses  (or portions
thereof),  apartments  subject  to  being  returned  are provided
with  a  dwelling place conforming to the requirements of Article
356 of the Civil Code of the Republic of Lithuania".
     The  aforementioned  norm  has  established  that houses (or
portions  thereof)  shall  be returned to the owners by providing
the  tenants  with some other dwelling place, into which they may
be  moved  by legal procedures, and not" at their own free will",
as it had been established by the initial norm.
     In  the  paper  it  is  noted  that the Constitutional Court
indicated  in  its  previous  rulings  that  "the provision that,
providing  there  is  no possibility to restore property in kind,
it  must  be  adequately compensated for, does not contradict the
principles   of  inviolability  of  property  and  protection  of
property   ownership   rights,  because  fair  compensation  also
ensures  restoration  of  property  ownership rights". Under such
circumstances,  the  new wording of Article 8 of the Law does not
contradict Article 23 of the Constitution.
     According  to  the  Chairman of the Committee, the motive of
a  group  of the Seimas members that "new requirements may not be
applied  to  the existing legal relations with the same contents,
as  it  would  mean  violation  of person's equality before law",
cannot  serve  as  the  basis  to  recognize that the legal norms
under   investigation  contradict  Articles  23  and  29  of  the
Constitution  for  as  long as the ownership rights have not been
restored,  persons,  claiming  the  restoration  of the aforesaid
rights,  are  not the owners. If some of its shortcomings come to
light  when  implementing  a law, or there appear some changes in
economy,  the  legislator may change legal norms to the interests
of  society,  thereby  hardening  conditions  of  some groups and
facilitating  those  of  other  groups  of individuals. Otherwise
there  would  be  no  progress  in  regulations of existing legal
relations.However,  newly  adopted  legal  norms  do  not possess
retroactive  validity.  Item  4 of Part 2 and Part 4 of Article 8
of   the   Law   are   in  compliance  with  Article  29  of  the
Constitution  as  they  do not violate the provisions of equality
of  persons:  the  owners,  as  well  as the tenants, are treated
equally,  disregarding  their  sex,  reace,  nationality, origin,
social status, religion, convictions, or options.
  
                               III                               
     In  the  process  of judicial investigation Andrius Kubilius
and   Vidmantas  Žiemelis,  representatives  of  the  petitioner,
confirmed  the  motives  set  forth  in the request of a group of
the  Seimas  members.  They have also indicated that when passing
the  law  on  the  restoration  of  the  rights of ownership, the
priority  was  given to restore property in kind. Initial wording
of  the  Law  provided  the possibility to return houses in kind,
whereas  after  the  3  July  1995  amendment of the Law had been
adopted, to do it became impossible.
     The  Law  passed  on 18 June 1991, as well as the Government
15  November  1991  Resolution No 470 on enacting the Law "On the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership  to  the  Existing  Real  Property"  of the Republic of
Lithuania,  and  the Government 27 October 1992 Resolution No 805
"On  Programmes  to Provide Tenants Who Live in Houses Subject to
Being  Returned  to Former Owners with Apartments", established a
system  which  reconciled both the interests of former owners and
of   the  tenants  who  live  in  the  houses  subject  to  being
returned.  That  programme  was  being  carried out successfully.
The  aforesaid  Government  Resolutions have been valid up to the
present,   they   have   not  been  abrogated,  nevertheless  the
Government  is  not  carrying  them  into  effect, and the budget
does   not   provide  finance  for  the  programme.  The  present
disputable  wording  of  item  4  of Part 2, Article 8 of the Law
hardens returning residential houses in kind.
     The   restoration  of  the  ownership  rights  thus  becomes
dependent  on  an  individual local government and its ecomonical
capacity.  According  to Article 19 of the Law a local government
shall  pass  the decision concerning the returning of property in
three  month's  time.  It cannot pass decision to return property
in  kind,  as at first it has to provide a tenant with a dwelling
place.  Alongside  the  part  of  27  October 1992 the Government
Resolution  No  805 which was provided in the programme to supply
tenants  who  live  in  houses  subject  to  being  returned with
apartments  that  the  tenants  shall be provided with apartments
in ten year's time, is no longer being carried into effect.
     In  the  opinion  of  the representatives of the petitioner,
the  new  amendment  of  Article  8 contradicts Article 23 of the
Constitution.  They  have  also  pointed  out,  that  many former
owners   have  been  restored  the  ownership  rights  to  houses
pursuant  to  the  initial wording of the Law, they receive rent,
whereas  the  conditions of other former owners, after the Seimas
had  amended  the  Law  on  3  July 1995, became graver. Thus the
principle  of  people's  equality  before  the  law,  granted  in
Article 29 of the Constitution, is violated.
  
                               IV
     Alfonsas  Vileita,  a representative of the party concerned,
in  the  process  of judicial investigation explained that during
the   last  50  years  complex  socio-economical  relations  have
arisen,  which  must  be  taken into account. There is no precise
decision  of  how  to  return residential houses, therefore while
adopting   normative   acts   it  is  necessary  to  endevour  to
co-ordinate  the  interests  of all groups of society, as well as
to consider public needs.
     There  exist  two groups of persons concerned: former owners
and  tenants  who  live  in houses subject to being returned. The
initial  wording  of the Law did not provide the co-ordination of
interests   of  the  aforesaid  groups.  The  former  owners  are
dissatisfied   with   Article   21  of  the  Law  which  provides
guaranties  for  the  tenants  and  limits the ownership right of
the   owner  to  freely  dispose  of  their  property.  They  are
dissatisfied  with  the rent rate amount which was established by
the  state  as  well. On the other hand, the tenants would become
like  the  homeless.  Besides,  there  was  a  situation when the
tenants  were  not  able  to  get apartments in new houses. It is
difficult  for  the  state  to  co-ordinate  the interests of the
aforesaid  groups.  If the conditions of one group of persons are
getting  better,  when  coordinating  the interests, consequently
the conditions of the other group is getting graver.
     The  Constitutional  Court has held that until the ownership
right  is  not restored, persons, claiming houses and apartments,
shall  not  be  considered  as  owners, whereas Article 23 of the
Constitution  in  all  its extent protects only the rights of the
owner.  Initially  the  Law  had no provision that property shall
be  unconditionally  returned  in  kind. The Law established that
whenever  the  property is not being returned in kind, the former
owners  shall  be  able  to  choose  the  manner of compensation,
which  ensures  restoration  of  the  ownership  rights  as well,
provided  by  the Law. The Constitutional Court has held so. When
assessing  the  Law,  two  problems  arise: that of conformity of
the  amendments  with the Constitution and that of the quality of
the  Law.  The  Constitutional  Court  does  not  solve  the  Law
quality  problems,  as it is the competence of the Seimas. In the
opinion  of  the  representative  of  the  party concerned, the 3
July  1995  amendment of the Law is in compliance with Article 23
of the Constitution.
     The  representative  of  the party concerned maintained that
the  aforesaid  amendment  of  the  Law  is  in  compliance  with
Article  29  of  the Constitution. This Article provides that all
people  shall  be  equal  before  the law disregarding their sex,
race,    nationality,    origin,    social    status,   religion,
convictions,  or  options. Former owners, as well as tenants, are
treated  equally  on  that  basis.  The motive of the petitioner,
that  a  person's equality before law is violated, as the initial
wording  of  the Law was applied to one group of persons, whereas
the  Law  establishing  stricter prescriptions will be applied to
some  other  persons,  is groundless. In the opinion of the party
concerned,   when  adopting  normative  acts,  the  interests  of
certain   groups  of  society  are  being  co-ordinated.  In  the
process  of  enacting  the  law  passed,  some  of its merits and
negativities  come  to the fore. Social relations having changed,
the  legislator  may  change  legal  norms, otherwise it would be
impossible  to  regulate  them  and  there  would  be total legal
stagnation.   The   restoration   of   property   relations   are
continuous,  therefore  they may be regulated, the only principle
being   that  newly  adopted  legal  norms  have  no  retroactive
validity.
     In  the  initial  wording  of Article 8 the concept of "free
will"  signified  total  impossibility  to evict tenants in legal
form.  If  compared to the initial wording, now the possibilities
of  former  owners  to restore the ownership rights are not being
diminished.  After  a tenant is provided with some other dwelling
place,  conforming  to  the  requirements  of  Article 358 of the
Civil  Code,  the property shall be returned to the former owner,
and the tenant may be evicted in legal form.
     If  the  residential  houses were returned together with the
tenants  who  live in the houses subject to being returned, there
would  emerge  the problem of compliance of Article 21 of the Law
with  Article  23  of  the  Constitution. The question would also
arise,  if  the  state  is  competent  to establish the amount of
rent  rate  and  restrict  the  right  of  the  owner  to use and
dispose of his property.
     On   the   grounds   of   the  aforementioned  motives,  the
representative  of  the  party  concerned requested not to comply
with the request of the petitioner.

     The Constitutional Court
                           holds that:                           

     The  Seimas  in  Article  2  of  the  3  July  1995  Law "On
Amending  and  Appending the Law of the Republic of Lithuania "On
the  Procedure  and  Conditions  of the Restoration of the Rights
of  Ownership  to  the  Existing  Real  Property"" set forth anew
Article  8  of  the  Law under amendment. The Seimas in item 4 of
Part  2  of  the  aforesaid  Article established that residential
houses  (or  portions  thereof),  apartments shall be returned in
kind  in  the  case  that  "tenants  who occupy houses subject to
being  returned,  are  provided  with a dwelling place conforming
to  the  requirements  of  Article  358  of the Civil Code of the
Republic  of  Lithuania".  It  was  established  in Part 4 of the
aforesaid  Article  that  "in  all  other cases, not specified in
Part  2  of  this  Article,  the  ownership rights to residential
houses  (or  portions  thereof),  to apartments shall be restored
by  bying  them  out  from persons specified in Article 2 of this
law on the basis of the option of the aforesaid persons /.../".
     The  petitioner  requests  to submit that the aforementioned
norms   of   the  Law  contradict  Articles  23  and  29  of  the
Constitution.
     1.   Upon   nationalisation   and   socialization  in  other
unlawful  manner  of land, banks, heavy industry, other property,
including  residential  houses,  carried  out  by  the occupation
government,   the   human   natural  rights  to  possess  private
property  was  denied.  The  property  illegally  disseized  from
people  did  not become state property and it is to be considered
disposed of by the state only in fact.
     The  restoration  of  the  institute of the right of private
ownership  signified  the  provision  of  the restored Lithuanian
state  to  protect person's violated private ownership rights. It
was  impossible  to  impartially  reconstruct the complete former
system  of  property  relations, as it was necessary to take into
consideration   socio-economical   and  other  social  relations,
which had changed.
     The   obstacle   in   restoring   the  ownership  rights  by
returning  residential  houses  to former owners in kind was that
the  dwelling  place  of  nationalized  or  socialized  in  other
unlawful  manner  houses  was  allotted to other persons who used
it  on  lease.  The  lessor of dwelling places was the occupation
government,   as  it  physically  and  economically  disposed  of
houses,  nationalized  and  socialized  in other unlawful manner.
The  aforementioned  dwelling  places  were  included  into state
housing   fund,   which   later   on   was  beeing  increased  by
constructing  other  residential  houses and by other manner. The
dwelling  places  of  the  aforesaid  fund  were  rented  out for
residents  with  neither  restriction  of  time  period of rental
relations,  nor  setting any obligations in respect to the former
owners.  It  should  be noted that then there existed a situation
when  a  person  could not freely choose the dwelling place being
allotted.  Having  refused  of the dwelling place being allotted,
the  person,  as  a  rule,  would  lose a possibility to get some
other  dwelling  place.  The  right  to  construct  for oneself a
residential  house,  as well as the right to get a dwelling place
from   a   being  created  state,  public,  or  residental  house
construction  cooperatives'  housing fund, was restricted. Though
there   existed  no  private  ownership,  people,  however,  were
allowed  to  make  transactions,  and to exchange dwelling places
among  them.  Thereby,  a person could become a tenant of a house
(or  a  portion  thereof),  or  of  an  apartment nationalized or
socialized  in  other  unlawful  manner.  Thus  it was occupation
government  which  violated  the rights of former owners, and not
the  tenants,  therefore  a tenant cannot have any obligations in
respect  to  the  former  owners.  The  Lithuanian  state, having
restored  the  institute  of  the  right  of  private  ownership,
commited  under  established  conditions and procedure to restore
the rights of ownership to the existing residential houses.
     One  of  the  main  objectives  of  law as means to regulate
social  life  is  justice.  Justice is one of basic moral values,
as  well  as  that of basic foundations of state governed by law.
The  aspiration  after  justice  and  state  governed  by  law is
established  in  the preamble of the Constitution. Justice may be
implemented  by  ensuring  a certain equilibrium of interests, by
escaping  fortuity  and self-will, instability of social life and
conflict  of  interests.  It  is  impossible to attain justice by
recognizing  the  interests  of  only one group or one person and
by  denying  the  interests  of  others  at  the same time. It is
impossible  to  solve clashes of interests by making absolute the
protection  of  rights  of  a  person who attempts to restore the
rights  of  ownership  to  a residential house by getting it back
in  kind,  and  at  the same time denying the right of tenants to
possess a dwelling place.
     The   legislator  chose  the  protection  of  the  ownership
rights  by  returning  the  house  in  kind, ensuring at the same
time  the  tenant  right  to  a  dwelling  place.  The  aforesaid
co-ordination  of  rights  was  established  in item 2 of Part 2,
Article  8  of  the  Law.  In  it  it  was  established  that the
ownership  rights  to  residential  houses  (or portions thereof)
shall  be  restored  in kind, providing the aforementioned houses
are  not  subject  to  being bought out by the state, in the case
that  tenants,  occupying  houses  subject to being returned, and
which  are  occupied  by  more than one family, are familiar with
all  of  the  laws  guaranteeing  their  rights,  and  with their
option  to  move  under  the  conditions  proposed  by  the local
government  and  set  forth  in  Article 21 of this Law, or under
other  conditions  guaranteed  by  the former owner of the house.
The  Supreme  Council  in  item  3 of its 16 July 1991 Resolution
"Regarding  the  Process  of  Enforcement  and Application of the
Law   of   the  Republic  of  Lithuania  "On  the  Procedure  and
Conditions  of  the Restoration of the Rights of Ownership to the
Existing   Real  Property""  in  which  it  was  prescribed:  "To
establish  that  tenants  who  occupy  houses  subject  to  being
returned  are  familiar  with  their  option  to move only in the
case  that  a concrete dwelling place which is being allotted and
which  is  in  conformity with the prescriptions of Article 94 of
the  Code  of  Apartments  of  the Republic of Lithuania shall be
indicated".  It  was  established  in  Article  94 of the Code of
Apartments  that  when  citizens  are  being  evicted,  the other
properly  furnished  dwelling  place allotted to them shall be in
conformity  with  the  prescriptions of Articles 42 and 43 of the
Code  of  Apartments, and the allotted dwelling place shall be no
less  than  that possessed by a person who is being evicted, etc.
Similar  standards  for some other proper dwelling place which is
being  allotted  are prescribed in Article 358 of the Civil Code.
Thus  from  the  very first day of its coming into force the Law,
when  returning  residential houses to former owners, has ensured
the  rights  of  tenants providing that tenants shall be allotted
some other properly furnished dwelling place.
     The  right  of tenants who reside in houses subject to being
returned  to  former owners to provide themselves with some other
dwelling  place  is  established  in  item 1 of Part 2, Article 6
and  in  item  2 of Part 1, Article 9 of the Law "On Enabling the
Population  of  the Republic of Lithuania in Providing Themselves
with  Dwelling  Places",  adopted  on 9 April 1992, as well as in
Article 356 of the Civil Code, appended on 17 May 1994.
     If  a  former  owner  requests  to  restore  a  house  (or a
portion  thereof),  or  an apartment in kind, the legal condition
of  the  tenant  shall  remain intact, however, the tenant is not
entitled  to  privatize  of  the  aforesaid  dwelling  place. The
lease  with  the tenant may be forfeited and he may be evicted in
the  case  that  the  condition of item 4 of Part 2, Article 8 of
the  Law  is  met,  i.e.  he is allotted a corresponding dwelling
place.  Thus  a  former owner may restore a residental house when
the  condition  prescribed  in the Law is met. Whenever it is not
met  or  the property is not correspondingly compensated for, the
subject  rights  of a former owner have not yet been restored. It
signifies  that  only the restored ownership rights are protected
by   every  legal  manner.  The  aforementioned  ownership  right
protection is established in Article 23 of the Constitution.
     When  restoring  ownership  rights to residential houses (or
portions  thereof),  or  apartments,  there  exist  a  variety of
possible  manners  to co-ordinate the protection of the rights of
former  owners  and  the  rights of tenants. The condition of the
restoration  of  ownership  rights,  prescribed in item 4 of Part
2,  Article  8  of  the  Law,  provides  that some other dwelling
place  shall  be  allotted  conforming  with the prescriptions of
Article  358  of the Civil Code. The aforesaid condition is bound
with  circumstances  which  neither  depend on the tenant, nor on
his  subjective  will.  The  allottment  of  some  other dwelling
place   to  tenants  is  the  problem  of  law  enforcement,  the
economical  capacity  of  the state and that of the possibilities
of  the  owners.  In order to solve this problem, as well as that
of  relations  between  former  owners and tenants who occupy the
houses  of  the former, the Government must prepare corresponding
programmes  (Part  5,  Article  21  of the Law, Article 14 of the
Law  "On  Enabling the Population of the Republic of Lithuania in
Providing  Themselves  with  Dwelling  Places"). The implementing
of  programmes  is  an  economical problem and it is being solved
when discussing, adopting and fulfilling the budget.
     The  statement  in  the  request  of the group of the Seimas
members  that  after the Constitutional Court had promulgated its
15  June  1994 ruling, the condition of item 2 of Part 2, Article
8  of  the  Law,  providing  that  tenants are familiar with real
opportunity   at  their  option  to  move  under  the  conditions
proposed  by  the local government and set forth in Article 21 of
this  Law,  or  under  other  conditions guaranteed by the former
owner  of  the house remained in force, cannot be considered as a
grounded  one.  The  Seimas  by  its  12  January  1993  Law  "On
Amending  the  Law  "On  the  Procedure  and  Conditions  of  the
Restoration  of  the  Rights  of  Ownership  to the Existing Real
Property"  substituted  the aforesaid provision of Article 8 with
another  provision:  "in  case that the tenants who occupy houses
subject  to  being  returned  at  their  own free will consent to
move  into  the  other allotted dwelling place", therefore item 2
of  Part  2,  Article  8 of the initial wording of the Law became
null  and  void.  After the Constitutional Court had acknowledged
in  its  15 June 1994 ruling that the provision of the 12 January
1993   law  condradicts  Article  23  of  the  Constitution,  the
aforesaid  provision  could  not  be applied (Part 1, Article 107
of  the  Constitution),  and therefore a gap in the Law appeared.
The  elimination  of  the gap is a prerogative of the institution
of power which has passed the legal norm.
     The  petitioner  points out that the Constitutional Court in
its  15  June  1994 ruling noted that new requirements may not be
applied  to  the existing legal relations with the same contents,
as  it  would mean violation of person's equality before law. The
petitioner  maintains  that  the  Seimas  violated  the aforesaid
equality,  as  certain  persons have restored residential houses,
whereas  after  adoption  of  the discussed amendment of the Law,
persons  who  have the ownership right to residential houses, and
who   have  not  restored  their  property,  got  into  a  graver
situation,   because   different   and  harder  requirements  are
applied to them.
     The  aforementioned  arguments  of  the  petitioner  are not
grounded.  As  it  was  mentioned,  pursuant to item 2 of Part 2,
Article  8  of  the  initial wording of the Law and item 3 of the
Supreme  Council  16  July  1991 Resolution regarding the process
of  enforcement  and  application  of  the Law of the Republic of
Lithuania  "On  the  Procedures and Conditions of the Restoration
of  the  Rights  of  Ownership to the Existing Real Property" one
of  essential  conditions  in restoring the right of ownership by
returning  residential  houses  (or portions thereof) in kind was
established,  i.e.  that  tenants who reside in houses subject to
being  returned  shall  be  provided  with  a  properly furnished
dwelling  place.  The  very  same condition is provided in item 4
of  Part  2, Article 8 of the Law, and which the petitioner calls
in  question.  Therefore  the  argument  that harder requirements
are  applied  to  former owners of residential houses than before
is not a grounded one.
     Taking  into  account the aforesaid motives a conclusion may
be  drawn  that  item  4  of  Part  2, Article 8 of the Law is in
compliance with the Constitution.
     2.  The  Law  regulates  the  restoration  of  the ownership
rights  to  the  existing  real  property.  Pursuant  to the Law,
ownership  rights  shall  be  restored not for all former owners,
and  not  to all formely owned property. The Law contains special
conditions  or,  to  be  more  precise,  restrictions  which  are
applied  to  former  owners who wish to restore their property in
kind.  It  is  evident  that  certain  conditions are established
which  restrict  the  restoration of the ownership rights, as the
system  of  socio-economical  relations  which  has  been  formed
during  the  last 50 years exerts influence upon this process. In
the  case  when  it is impossible to return property in kind, the
former  owner  may choose another manner of compensation which is
provided  in  the Law. The Constitutional Court has noted several
times   that   the   provision   that,   providing  there  is  no
possibility  to  restore  property in kind, it must be adequately
compensated   for,   does   not   contradict   the  principle  of
protection  of  property  ownership  rights as well, because fair
compensation  also  ensures  restoration  of  property  ownership
rights  (the  27 May 1994, 15 June 1994, 19 October 1994, 8 March
1995 rulings of the Constitutional Court).
     The  manner  of  compensation  in  the case that residential
houses  shall  not  be  returned in kind is prescribed in Part 4,
Article  8  of  the  Law. The restoration of the ownership rights
by  compensating  for  existing real property in the case that it
is  impossible  to  return  it  in  kind  is  warranted  as well,
therefore  a  conclusion  may  be drawn that Part 4, Article 8 of
the Law is in compliance with the Constitution.

     Conforming  to  Article  102  of  the  Constitution  of  the
Republic  of  Lithuania, as well as Articles 53, 54, 55 and 56 of
the   Law   on  the  Constitutional  Court  of  the  Republic  of
Lithuania,   the   Constitutional   Court   of  the  Republic  of
Lithuania has passed the following.
                             ruling:                             

     To  recognise  that  item  4 of Part 2, Article 8 of the Law
of  the  Republic  of  Lithuania "On the Procedure and Conditions
of  the  Restoration  of  the Rights of Ownership to the Existing
Real  Property",  as  wel  as the norm of Part 4 of the aforesaid
Article  "In  all  other  cases,  not specified in Part 2 of this
Article,  the  ownership right to residential houses (or portions
thereof),  to  apartments  shall  be  restored by buying them out
from  persons  specified in Article 2 of this law on the basis of
the  option  of  the  aforesaid  persons /.../" are in compliance
with the Constitution of the Republic of Lithuania.

     This  Constitutional  Court  ruling is final and not subject
to appeal.
     The  ruling  is  promulgated  on  behalf  of the Republic of
Lithuania.