Lietuviškai

                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    

                           R U L I N G                           

         On the compliance of the Republic of Lithuania          
         Government 17 July 1995 Resolution No. 987 "On          
            selling and lease of state land plots for            
        non-agriculture activities" with the Constitution        
          of the Republic of Lithuania as well as with           
          Articles 97, 98, 99 of the Civil Code of the           
       Republic of Lithuania and items 1 and 3 of Article        
        9, Part 1 of Article 14 and Article 18 of the Law        
        of the Republic of Lithuania on the Governing of         
                           the County                            

                    22 October 1996, Vilnius                     

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  justices  of the Constitutional Court Egidijus
Jarašiūnas,   Kęstutis  Lapinskas,  Zigmas  Levickis,  Augustinas
Normantas,  Vladas  Pavilonis,  Jonas Prapiestis, Pranas Vytautas
Rasimavičius, Teodora Staugaitienė, and Juozas Žilys,
     the secretary of the hearing - Daiva Pitrėnaitė,
     the  petitioner  -  Andrius Kubilius, a member of the Seimas
and  the  representative  of a group of the members of the Seimas
of the Republic of Lithuania,
     the  party  concerned  -  Julius  Jurginis, the secretary of
the   Ministry   of   Public  Administration  Reforms  and  Local
Government  Affairs,  Miroslavas  Gruodis,  the head of the Legal
Expertise  Division  of  the  Ministry  of  Public Administration
Reforms  and  Local  Government  Affairs, Stanislovas Naujalis, a
deputy  director  of  the  Department of the Territorial Planning
of  the  Ministry  of  Construction  and Urban Planning, they all
are   representatives  of  the  Government  of  the  Republic  of
Lithuania,
     pursuant  to  Part  1  of Article 102 of the Constitution of
the  Republic  of Lithuania and Part 1 of Article 1 of the Law of
the  Republic  of  Lithuania  on  Constitutional  Court,  in  its
public  hearing  on 26 September 1996 conducted the investigation
of  Case  No.  17/95  subsequent to the petition submitted to the
Court  by  the  petitioner - a group of the members of the Seimas
of  the  Republic of Lithuania - requesting to investigate if the
Republic  of  Lithuania  Government  17  July 1995 Resolution No.
987   "On   selling   and   lease   of   state   land  plots  for
non-agriculture  activities"  is  in  compliance  with  Part 2 of
Article  128,  Articles  119  and  120,  Part 2 of Article 77 and
Part  4  of  Article  46  of  the Constitution of the Republic of
Lithuania  as  well as with Articles 97, 98, 99 of the Civil Code
of  the  Republic  of Lithuania, items 1 and 3 of Article 9, Part
1  of  Article  14  and  Article 18 of the Law of the Republic of
Lithuania on the Governing of the County.

     The Constitutional Court
                        has established:                         

     On   17  July  1995,  the  Government  of  the  Republic  of
Lithuania  adopted  its  Resolution No. 987 "On selling and lease
of  state  land  plots  for non-agriculture activities" (Official
Gazette  "Valstybės  Žinios"  No.  60-1513,  1995; hereinafter in
the  ruling  of  the  Constitutional  Court  referred  to  as the
disputed  resolution).  Item  1  of this resolution approved "The
procedure   of   selling  and  lease  of  state  land  plots  for
non-agriculture  activities"  (hereinafter in the ruling referred
to  as  the  Procedure of Selling and Lease) and "The regulations
of  selling  and  lease  by  non-auction  procedure of state land
plots   for   non-agriculture  activities"  (hereinafter  in  the
ruling referred to as the Regulations of Selling and Lease).
  
                                I                                
     The  petitioner  grounds  his  request  with  the  following
arguments.
     1.  The  Government  approved  "The procedure of selling and
lease  of  state  land  plots  for non-agriculture activities" by
Item  1  of  the  aforesaid  resolution.  In  the  opinion of the
petitioner,  the  provision that the Government establishes as to
what  conditions  and  procedure  the  form  of property shall be
changed  from  state (public) into private one contradicts Part 2
of  Article  128  of  the  Constitution  which  establishes  that
"procedures   concerning   the   management,   utilisation,   and
disposal  of  State  property  shall  be established by law". The
petitioner  is  certain  that  only the legislator is entitled to
establish  procedure  concerning the management, utilisation, and
disposal   of   the  property  and  may  not  delegate  to  other
subjects,  including  the  Government,  this right which has been
assigned, according to the Constitution, exclusively to him.
     2.  Item  2  of  the  disputed Government resolution granted
the  right  to  possess  state  land to executive institutions of
local  self-government.  The  petitioner  is  of the opinion that
this  provision  whereby  the  Government  by  its decision shall
grant  the  right  to possess state land in different territories
to  executive  institutions  of local self-government contradicts
Part  2  of  Article  120  of  the  Constitution  wherein  it  is
stipulated   that   local   governments   shall  act  freely  and
independently  within  the limits of their competence which shall
be  established  by  the  Constitution  and  laws. Thus, as it is
noted  by  the  petitioner,  the  Constitution  provides that the
competence  of  local  governments  may  be circumscribed only by
the  Constitution  and  laws and never by Government resolutions,
therefore  the  legislator may not delegate to the Government the
right   to  circumscribe  the  competence  of  local  governments
including  that  pertaining  to the sphere of land possession and
this  right  has  been  assigned,  according to the Constitution,
exclusively to him.
     The   petitioner   also   indicates   that  Item  2  of  the
Government  resolution  contradicts items 1 and 3 of Article 9 of
the   Law   on   the  Governing  of  the  County  wherein  it  is
established  that  the  county  governor  shall manage state free
land  stock,  with  the  exception  of  land transferred into the
possession  of  the institutions of local self-government as well
as  implement  land  reform. As, according to Part 1 of Article 4
of  the  Law  of  the  Republic of Lithuania on Land Reform, land
reform   must   be   implemented  by  the  county  governor,  and
self-government  institutions  may  not be transferred state free
land  required  to  implement land reform. According to Part 1 of
Article  45  of  the Republic of Lithuania Law on Land, the stock
of  the  state  free  land  which  is not allotted for the use by
natural  and  legal  persons,  and not leased or transferred into
private   ownership   may   and  must  be  transferred  to  local
governments  into  possession. This is not only the land of towns
but  also  the  land  occupied by other residential areas: towns,
small  towns  and  villages  the  notions of which are defined in
Article  3  of the Law on the Territorial Administrative Units of
the  Republic  of  Lithuania  and their Boundaries. The fact that
the  competence  of  the  county  governor  regarding management,
utilisation,  and  disposal  of state land is confined within the
limits  of  implementation  of land reform permits to assert that
the  provision  of  the  Government  resolution to grant the land
possession  right  to  executive  institutions of self-government
only  on  the  territories  which  are  within  the boundaries of
administrative  units  of  local governments of towns contradicts
items  1  and  3  of Article 9 of the Law on the Governing of the
County.
     3.  Item  3.1  of the Government resolution establishes that
"the  county  governor  may sell or lease new plots of state land
by   non-auction   procedure  in  rural  areas  as  well  as  the
territories  indicated  in Items 2.1 and 2.2 of this resolution",
i.e.,  the  county  governor is granted the right to manage state
free  land  which  local  governments are commissioned to possess
by  Items  2.1  and 2.2 of this resolution. In the opinion of the
petitioner,  this  provision  contradicts  item 1 of Article 9 of
the  Law  on  the  Governing of the County which establishes that
the  county  governor  shall  "manage state free land stock, with
the  exception  of  land  transferred  into the possession of the
institutions  of  local  self-government"  as the county governor
is  granted  the  right to dispose of state free land which local
governments  are  commissioned to possess by Items 2.1 and 2.2 of
this  resolution.  Besides,  as  it  is  noted by the petitioner,
Article  5  of  the  Law  Concerning Implementation of the Law of
the  Governing  of  the  County established that, upon the Law of
the  Governing  of  the  County  going  into  effect,  Government
resolutions  and  other legal acts regarding issues of organising
county  governing  shall  be valid to the extent that they do not
contradict the Law on the Governing of the County.
     The   petitioner   also   alleges   that  Item  3.1  of  the
Government  resolution  contradicts  Articles  97  and  98 of the
Civil  Code  which  establish  that the object of public property
law  in  the  Republic  of  Lithuania  shall,  along  with  other
property,  be  land  whereas  the subjects of public property law
shall  be  the  State  and local governments. Thus the Civil Code
provides  for  two  public property law independent subjects that
accomplish  independently  their  right which has been granted to
them  by  laws to possess public property. However, the aforesaid
provision  of  the  Government  resolution  creates conditions to
one  of  the  public  property  subjects to actually restrict the
rights  of  the  other  subject  in  the  sphere of possession of
state land.
     4.  Item  3.4  of the Government resolution establishes that
the  county  governor shall decide disagreements between legal or
natural  persons  and  the  mayor  (board), when establishing the
size,  boundaries,  purpose, limitations and terms, conformity of
the  approved  detailed  plan of the sold (transferred) or leased
land  plot.  The  petitioner  is  of  the  opinion  that  such  a
provision  when  the  county  governor  may  decide  the conflict
between   an   executive  institution  of  local  government  and
natural  or  legal  persons  groundlessly broadens the regulation
sphere  of  the  Law  on  the Governing of the County because the
said  law  does  not  provide  that  the county governor shall be
entitled  to  suspend,  amend,  or  cancel  decisions  adopted by
local  governments.  Furthermore,  the said provision contradicts
Part  1  of  Article 14 of the Law on the Governing of the County
which  provides  that  the  relations of the county governor with
administrative  institutions  of self-government shall be limited
to co-operation.
     Item  3.4  of  the  said  resolution  also  establishes that
decisions   of   the   county  governor  regarding  decisions  of
disagreements  between  legal  or  natural  persons and the mayor
(board)  may  only  be  appealed against in court. In the opinion
of  the  petitioner, this provision contradicts Article 18 of the
Law  on  the  Governing  of the County which establishes that the
county  governor  shall  issue  orders and other legal acts while
the  Government  shall  have  the  right to repeal the orders and
legal  acts  of the county governor if they are not in conformity
with  the  Constitution  of  the Republic of Lithuania, the laws,
other  legal  acts passed by the Seimas, decrees of the President
of  the  Republic  and  the  resolutions of the Government. Thus,
decisions  of  the  county  governor  may  not  only  be appealed
against in court but also petitioned to the Government.
     5.  Item  2  of  the  Procedure  of  Selling  and  Lease  as
approved  by  the  Government  resolution establishes that "while
selling    or    otherwise    transferring    state    land   for
non-agriculture  activities,  the  respective county governor or,
upon  his  authorisation,  the  head  of  the  county  governor's
administration  service  for  organisation  of  land exploitation
and  geodesy  shall  represent  the  State.  The  county governor
shall  permit  by  his  decision  to sell or otherwise transfer a
land plot".
     The  petitioner  is  of  the  opinion  that  this  provision
contradicts  Article  9 of the Law of the Governing of the County
which  does  not  provide that the county governor is entitled to
sell  land  when this is not related to the land reform. The said
provision  also  contradicts Article 99 of the Civil Code wherein
it  is  established  that "the possessions of the State and local
governments  shall  be  managed,  utilised  and  disposed  of  by
respective  institutions  of the supreme power and government, as
well  as  those of local power and government, of the Republic of
Lithuania  on  the  grounds  of  laws and other normative acts of
the  Republic  of  Lithuania".  It is impossible to hold that the
county  governor  is  an  institution  of  the  supreme power and
government  of  state let alone the head of the county governor's
administration  service  for  organisation  of  land exploitation
and  geodesy  who  is  authorised  by the latter as, according to
Part  1  of  Article 1 of the Law on the Governing of the County,
the  county  is  only a higher territorial administrative unit of
the  Republic  of  Lithuania  whereas  the  county governor is an
institution  through  which  the  Government  shall  organise the
governing  in  this  territory. In the opinion of the petitioner,
the  provision  that  "the  county  governor  shall represent the
State"  contradicts  Part  2  of  Article  77 of the Constitution
wherein   it   is  established  that  only  the  President  shall
represent the State of Lithuania.
     6.  Items  7.1.9  and 8.1.19 of the Procedure of Selling and
Lease   provide   that   state  land  plots  for  non-agriculture
activities   shall   also   be  sold  or  leased  by  non-auction
procedure   without   prior  conditions  in  the  case  when  the
Government  adopts  a  special  decision.  The petitioner alleges
that  such  a  provision  which  permits  the Government to place
certain  persons  at  a privileged position obviously contradicts
the  principles  of  fair  competition  that  are consolidated in
Part   4  of  Article  46  of  the  Constitution  wherein  it  is
established  that  "the  law  shall  prohibit  monopolisation  of
production  and  the  market,  and  shall protect freedom of fair
competition".
     7.  Item  14  of  the  Regulations  of  Selling and Lease as
approved  by  the  disputed  Government  resolution provides that
the  mayor,  on  his  proposal,  shall  transfer the size of land
plots  which  are  to  be  sold  (the  sketch  of  the  land plot
prepared  so  as  it is provided for in Item 6 of the Regulations
of  Selling  and  Lease  as approved by said disputed resolution)
to  the  district  agriculture  board  or  the  town  service for
organisation  of  land  exploitation  and geodesy whereas Item 15
of  the  said  resolution  provides  that  "the  mayor  shall  be
entirely  responsible  for  the accuracy and validity of the data
presented".  Item  21  of  these Regulations of Selling and Lease
also   provides   that   the   mayor  must  submit  the  district
agriculture  board  or  the town service for organisation of land
exploitation  and  geodesy  the  prescribed data characterising a
leased  land  plot  (its size and boundaries which are noted in a
copy  of  the  technical report file of the land plot plan, as it
is  required  by  Item  21.1)  while  Item  22 indicates that the
mayor   shall  be  entirely  responsible  for  the  accuracy  and
validity of the data presented.
     The  petitioner  points  out  that  Part  4 of Item 6 of the
Procedure  of  Selling  and  Lease  establishes that "sketches of
sold   or   leased   non-agriculture   purpose   land  plots  for
non-agriculture  purposes  shall  be  prepared  from the means of
the  persons  concerned  pursuant to the procedure established by
the  State  Service  for  Organisation  of  Land Exploitation and
Geodesy  under  the  Ministry  of  Agriculture" whereas Part 5 of
Item  6  prescribes  that  the  work  of  land survey and that of
preparation  of  land  plots shall be organised conforming to the
established   procedure   of   the   30   April  1992  Government
Resolution  No.  316  "On  approving  statutes of the Republic of
Lithuania  state  cadastre  on  land  (along with the elements of
real  property)".  The petitioner also notes that said Government
Resolution  No.  316  does  not  provide that the mayors or local
governments  may  have  any  influence  upon  preparation of land
plot sketches.
     The   29  March  1995  Government  Resolution  No.  451  "On
transfer   of   local   governments'   functions  which  are  not
delegated  by  law  to  county  governors"  established  that all
functions,  thus,  those  of  organisation  of land exploitation,
too,  which  had not been delegated to local governments shall be
transferred,  along  with  all  staff  and material and financial
resources,  to  county governors. Therefore, at the given moment,
the   mayors   have  no  actual  possibilities  to  fulfil  their
functions  provided  for by Items 14 and 21 of the Regulations of
Selling  and  Lease.  In the opinion of the petitioner, that fact
that  functions  are  delegated  by  a  resolution and not by law
contradicts   Part   3   of  Article  14  of  the  Law  on  Local
Self-Government.  The  petitioner  alleges that the fact that the
mayors  who  do  have  any  corresponding services and who do not
have  any  influence  upon  preparation  of the sketches, either,
are   forced   to  submit  land  plot  sketches  the  preparation
procedure  of  which  is  established  by  the  State Service for
Organisation  of  Land  Exploitation  and  Geodesy  that  is  not
subordinate  to  them,  as  well  as  the fact that they are made
responsible  for  the accuracy of the submitted data, contradicts
Part  2  of  Article  120  of  the Constitution establishing that
local  governments  shall act freely and independently within the
limits  of  their  competence  which  shall be established by the
Constitution  and  laws.  In  this  case,  the  mayors  of  local
governments   may   not  act  freely  and  independently  as  the
Government  grants  them  the  competence  (to  submit  the  data
regarding  land  plots)  by  one  resolution while by its another
resolution   it   deprives   them   with  physical  and  material
possibilities  (services  for  organisation of land exploitation)
to fulfil these obligations.
     On  the  grounds  of  the  motives set forth, the petitioner
requests  to  recognise that the Republic of Lithuania Government
17  July  1995  Resolution No. 987 "On selling and lease of state
land  plots  for  non-agriculture  activities" contradicts Part 2
of  Article  128,  Articles 119 and 120, Part 2 of Article 77 and
Part  4  of  Article  46  of the Constitution as well as Articles
97,  98,  99  of the Civil Code, items 1 and 3 of Article 9, Part
1  of  Article  14  and  Article 18 of the Law of the Republic of
Lithuania on the Governing of the County.
     During   the   court   hearing  the  representative  of  the
petitioner  emphasised  that the items of the disputed Government
resolution  which  are indicated in the motives of the petitioner
are   essential   ones.   Providing   the   Constitutional  Court
recognised   that  they  contradict  the  Constitution,  all  the
remaining  items  of  the  disputed  resolution  would lose their
sense.
  
                               II                                
     When  the  case  was  being  prepared for the court hearing,
the  representatives  of  the  party concerned - the Government -
presented the following counter-arguments.
     1.1.  As  regards  the allegation of the petitioner that the
Government   is   not   permitted  to  establish  conditions  and
procedure  of  selling  and  lease of sate land as Article 128 of
the   Constitution   indicates  that  procedures  concerning  the
management,  utilisation,  and  disposal  of State property shall
be  established  by  law,  J.  Jurginis,  the  secretary  of  the
Ministry  of  Public  Administration Reforms and Local Government
Affairs,  a  representative  of  the  party concerned, explained:
Article  24  of the Law on Land establishes that state land shall
be  sold  or  in any other way transferred into private ownership
by   the  county  governors  in  accordance  with  the  procedure
established  by  law  and  the  Government,  thus,  this  law has
established  as  to who may dispose of land while transferring it
into  private  ownership  and  what  procedures  must be followed
when  doing  so.  In  the  opinion  of  the representative of the
party   concerned,   the   Government   adopted   said   disputed
resolution  by  following  law, therefore it has not violated the
Constitution.
     1.2.  The  representative  of  the  party  concerned alleges
that   the  provisions  of  the  disputed  Government  resolution
whereby  executive  institutions  of self-government are entitled
to   possess  state  land  in  particular  territories  does  not
contradict  Part  2  of  Article  120  of  the Constitution which
stipulates   that   "local   governments  shall  act  freely  and
independently  within  the limits of their competence which shall
be  established  by  the  Constitution and laws" as the provision
of  Item  2  of the disputed Government resolution is grounded on
Article  6  of the Law on Land whereby the right to possess state
land  shall  be  granted to local self-government institutions by
the  decision  of  the  Government.  Moreover,  on the grounds of
item  3,  Part  5 of Article 30 of the Law on Land, the land plot
which  is  subject  to  be  transferred to local governments into
possession  shall  be defined in accordance with how much of land
is   needed   to  implement  the  competence  of  self-government
institutions.
     1.3.  The  representative  of  the party concerned is of the
opinion  that  Item  3.1 of the disputed Government resolution is
in  compliance  with  the provision of item 1 of Article 9 of the
Law  on  the  Governing of the County whereby the county governor
shall  manage  state  free land stock, with the exception of land
transferred  into  the  possession  of  the institutions of local
self-government.  In  his  opinion,  the  land management that is
indicated in the said law does not embrace law of disposition.
     1.4.  The  representative  of  the party concerned is of the
opinion  that  the  allegation of the petitioner that Item 3.4 of
the  disputed  Government  resolution  which establishes that the
county  governor  may  decide certain disagreements between legal
or  natural  persons broadens the county governor's competence of
regulation  which  is  established by the Law on the Governing of
the  County  is not a grounded one. The disputed provision of the
said  resolution  provides  that the county governor shall decide
disagreements  between  legal  or  natural  persons and the mayor
(board)   when   establishing   the  size,  boundaries,  purpose,
limitations  and  terms, conformity of the approved detailed plan
of  the  sold  (transferred)  or leased land plot. Providing this
issue  were  not  regulated  this  way,  it is possible to appeal
against to court for its final settlement.
     Thus,  in  the  opinion  of  the representative of the party
concerned,  the  disputed  provision  of  the resolution does not
violate  anybody's  rights  or  interests but it merely creates a
possibility to regulate a dispute in the fastest way possible.
     1.5.  Item  2  of  the  Procedure  of  Selling  and Lease as
approved  by  the disputed Government resolution establishes that
while  transferring  state land, the county governor or, upon his
authorisation,  the  head of the county governor's administration
service  for  organisation of land exploitation and geodesy shall
represent  the  State.  In  the  opinion  of the petitioner, this
contradicts  Article  77  of  the  Constitution  whereby only the
President of the Republic shall represent the State.
     The  representative  of  the  party concerned explained that
the  Constitution  does  not  contain  the word "only", meanwhile
representation  is  a  constituent  part  of disposition of state
property.  According  to  Article  24  of the Law on Land, county
governors  shall  be  entitled  to  dispose  of state land plots.
When   implementing   this  function,  they  have  the  right  to
represent   the   State.   Therefore,  disputed  Item  2  of  the
Procedure of Selling and Lease is in conformity with law.
     1.6.  As  regards Items 7.1.9 and 8.1.19 of the Procedure of
Selling   and  Lease  as  approved  by  the  disputed  Government
resolution    which   provide   that   state   land   plots   for
non-agriculture   activities   shall   be   sold   or  leased  by
non-auction  procedure  without prior conditions also in case the
Government  should  adopt  a special decision, the representative
of   the  party  concerned  explained  that  the  Government  was
entitled  to  establish  such a procedure following Article 99 of
the Civil Code.
     1.7.  The  representative  of  the  party  concerned alleges
that   the   documents   (land   plot   sketches)  are  at  local
governments'  command  and the said documents are necessary while
selling  the  plots,  therefore the provisions of the Regulations
of  Selling  and  Lease  as  approved  by the disputed resolution
whereby  the  mayors  are  proposed  to submit these documents in
corresponding  cases  are  adopted  following  item  5, Part 1 of
Article 18 of the Law on Local Self-Government.
     Taking  account  of  the mentioned above, the representative
of  the  party  concerned requests to recognise that the Republic
of  Lithuania  Government  17  July  1995  Resolution No. 987 "On
selling  and  lease  of  state  land  plots  for  non-agriculture
activities" is in compliance with the Constitution.
     2.1.  S.  Naujalis,  a  deputy director of the Department of
the  Territorial  Planning  of  the  Ministry of Construction and
Urban   Planning,   a  representative  of  the  party  concerned,
explained  that  the  provision  of  Item  3.4  of  the  disputed
Government  resolution  means  that  the  county governor decides
disagreements  between  natural  or  legal  persons and the mayor
(board)  concerning  the conformity of the approved detailed plan
while  selling  or  leasing  land  plots  but the said resolution
does  not  mean that decisions adopted by local governments shall
be repealed.
     Item  3,  Part  2  of  Article  30 of the Law on Territorial
Planning  establishes  that  the  county  governor  shall  render
state  supervision  of  general and detailed territorial planning
of  local  governments'  territories while item 5 of Article 8 of
the  Law  on the Governing of the County provides that the county
governor  shall  establish  conditions  for  the  preparation  of
territorial  planning  documents  for  local governments. If laws
commission   the   county   governor   to   establish  conditions
regarding  preparation  of  a detailed plan for local governments
and  to  render  state  supervision  of  territorial  planning of
local  governments'  territories,  then,  in  the  opinion of the
representative  of  the  party  concerned, no one else may settle
disagreements  concerning  the  conformity  of  a  detailed plan.
According  to  the  Law  on  the Territorial Planning, the person
who  prepares  the  plan, in this case, the local government, may
not render supervision of territorial planning.
     2.2.  The  representative  of  the party concerned is of the
opinion  that  the  provision  of  Item  2  of  the  Procedure of
Selling  and  Lease  as  approved  by  Item  1  of  the  disputed
Government  resolution  that  the State shall be represented by a
respective  county  governor  is  not  a new legal norm but taken
from  Part  2  of  Article  24  of  the Law on Land wherein it is
established  that  while making contracts of sale and purchase as
well  as  of  lease  and  use  of  land  plots, either the county
governor  or,  upon  of his authorisation, the head of the county
governor's   administration  service  for  organisation  of  land
exploitation and geodesy shall represent the State.
     2.3.  Items  14  and  21  of  the Regulations of Selling and
Lease,  as  well as Item 6 of the Procedure of Selling and Lease,
provide  that  the mayor shall transfer the size of the sold land
plots  and  other  data  on  the grounds of detailed plans to the
district   agriculture   board  or  the  town  service  for  land
exploitation   and   geodesy.  According  to  the  Law  of  Local
Self-Government,   the   preparation   of  such  plans  shall  be
organised  by  local  governments,  therefore,  in the opinion of
the   representative   of  the  party  concerned,  the  mayor  is
responsible  for  the accuracy of these data. After that the plan
of  the  sold land plot and its geodetic survey are prepared from
the  means  of  persons  concerned  following  the  30 April 1992
Government   Resolution   No.   316.   The   mayors  are  neither
responsible  for,  nor  do  they  take part in the preparation of
plans   of  the  sold  land  plots  and  their  geodetic  survey.
Therefore  the  representative  of  the  party  concerned alleges
that  the  statement  of  the  petitioner that the mayors have no
physical  possibilities  to  fulfil the functions commissioned to
them  by  Items 14 and 21 of the Regulations of Selling and Lease
is  not  a  grounded  one.  The mayors shall submit material with
territorial  plans  the  preparation  of  which  is  organised by
councils of architects to the county governor.
     The  representatives  of  the  party  concerned, in essence,
reiterated  the  said  statements  and  arguments  in  the  court
hearing.

     The Constitutional Court
                           holds that:                           
  
     Article   119   of   the   Constitution   establishes   that
administrative  units  provided  by  law on State territory shall
be  entitled  to  the  right of self-government. This right shall
be   implemented   through   local   government  Councils.  Local
governments   shall  act  freely  and  independently  within  the
limits  of  their  competence  which  shall be established by the
Constitution and laws (Article 120 of the Constitution).
     When  implementing  the  local  self-government  reform, the
idea  of  two-level  local  governments  was abandoned and it was
established  that,  in  higher  level  administrative  units, the
administration  shall  be  organised by the Government (Part 1 of
Article 123 of the Constitution).
     The   local   self-government   reform  is  carried  out  by
degrees:  on  7  July  1994  the Law on Local Self-Government was
passed,  and,  correspondingly,  on  17 July of the same year the
Law  on  the  Territorial Administrative Units of the Republic of
Lithuania  and  their  Boundaries,  15  December of the same year
the  Law  on the Governing of the County, 12 December 1995 Law on
Territorial Planning, etc. were adopted.
     According   Part  1  of  Article  1  of  the  Law  on  Local
Self-Government,  local  self-government  "denotes  the right and
actual  power  of the institutions of a local government which is
elected  by  the  residents  of  an  administrative  unit  of the
territory   of   the   Republic   of  Lithuania,  to  freely  and
independently  on  their  own  responsibility regulate and manage
public  affairs  and  meet the needs of local residents according
to the Constitution and laws of the Republic of Lithuania".
     This    legal   norm   particularises   the   constitutional
principle  of  local  governments'  independence  and realises in
practice  the  constitutional  provision that only the legislator
may   regulate   the   competence  of  local  governments.  Local
self-government   is  implemented  through  a  state  territorial
administrative  unit  (territory  of  a  local  government).  The
territory  of  a  local  government  is  a  specific  territorial
entity  which  has  the  self-government  right guaranteed by the
Government  and  which  acts  independently within the competence
limits  that  are  established  by the Constitution and laws. The
executive  power  has  only  limited  powers with regard to local
governments   and   these   powers   are   established   by   the
Constitution   and   laws   in   attempt   to   ensure  effective
implementation of state administration.
     Upon   the   adoption   of   the   Law  on  the  Territorial
Administrative  Units  of  the  Republic  of  Lithuania and their
Boundaries,  the  territory  of  the  Republic  of  Lithuania was
divided  into  administrative units - counties and territories of
local  governments.  According  to  Part  1  of Article 2 of this
law,  "the  territory  of  a  local  government  is a territorial
administrative  unit  of  the  Republic  of  Lithuania,  which is
governed  by  institutions  of  local self-government, elected by
the    local   community   pursuant   to   the   Law   on   Local
Self-Government  of  the  Republic  of Lithuania and other laws".
Thus  the  territory  of  a  local  government  is  treated  as a
decentralised,  i.e.,  as  a  comparatively independent system of
administration.  Part  2  of  the  said  law prescribes that "the
county  is  the  higher  territorial  unit  of  the  Republic  of
Lithuania,  the  governing  of  which  shall  be organised by the
Government  of  the  Republic of Lithuania pursuant to the Law on
the  Governing  of  the  County  and  other  laws".  Thus  county
administration  is  a  constituent  part of state administration.
The   Government  organises  county  administration  through  the
county  governor,  ministries  and other Government institutions.
Consequently,  functions  of centralised state administration are
implemented through counties.
     The    purpose    of    dividing    State   territory   into
administrative   units   is   to   bring   into  being  necessary
preconditions  to  best  organise administration, to better serve
people  and  meet  their  administrative  needs. In this respect,
counties  and  municipalities  are,  not  taking  account  of the
mentioned  differences,  united  by  common aims. This conditions
the  necessity  of  their  co-operation, as well as the necessity
to    co-ordinate    centralised    state   administration   with
decentralisation.
     While  discharging  functions of centralised administration,
the  Government  implements  laws  and  resolutions of the Seimas
concerning  the  implementation  of  laws  pursuant  to item 2 of
Article  94  of  the Constitution. Part 1 of Article 6 of the Law
on  Land  establishes  that the right of possession of State land
shall  be  vested  in  local  governments  by the decision of the
Government,  while  Part  2  of  the  said  article obligates the
Government  to  establish  common procedure of land use, lease or
its   transfer  into  use  to  legal  and  natural  persons.  The
Government,  when  implementing  this  commission, adopted its 17
July  1995  Resolution  No.  987  "On  selling and lease of state
land plots for non-agriculture activities".
     1.   On  the  compliance  of  Item  1  of  the  Republic  of
Lithuania   Government  17  July  1995  Resolution  No.  987  "On
selling  and  lease  of  state  land  plots  for  non-agriculture
activities"  with  Part 2 of Article 128 of the Constitution, and
Item  2  of  "The  procedure  of  selling and lease of state land
plots   for  non-agriculture  activities"  as  approved  by  this
resolution  with  Part  2  of  Article  77  of  the Constitution,
Article  99  of  the  Civil Code, as well as on the compliance of
Items  7.1.9  and  8.1.19  of  this  resolution  with  Part  4 of
Article 46 of the Constitution.
     1.1.  The  Government approved "The procedure of selling and
lease  of  state  land  plots  for non-agriculture activities" by
Item  1  of  the  disputed  resolution.  In  the  opinion  of the
petitioner,  the  provision that the Government establishes as to
what  conditions  and  procedure  the  form  of property shall be
changed  from  state (public) into private one contradicts Part 2
of  Article  128  of  the  Constitution  which  establishes  that
"procedures   concerning   the   management,   utilisation,   and
disposal of State property shall be established by law".
     Part  1  of Article 24 of the Law on Land stipulates: "State
land  shall  be sold or in any other way transferred into private
ownership   by  the  county  governors  in  accordance  with  the
procedure  established  by law and the Government of the Republic
of  Lithuania."  This  provision  is  to  be  understood that the
Procedure   of   Selling  and  Lease  approved  by  the  disputed
Government  resolution  may  never  contradict  laws,  as well as
legal  provisions  and  principles  concerning  land  selling and
lease formulated in these laws.
     In   this   light   the   said  resolution  adopted  by  the
Government,  as  well  as  the  Procedure  of  Selling  and Lease
approved by this resolution, must be assessed.
     1.2.  Items  1.1  -  1.1.2  of  the Procedure of Selling and
Lease  provide  for  subjects  that  may acquire state land plots
for  non-agriculture  activities by the right of ownership. These
subjects  are  provided for by Article 47 of the Constitution and
Article  3  of  the  Law  on  Land.  Items  1.2  -  1.2.2  of the
Procedure  of  Selling and Lease establish subjects that may take
this  land  on lease. These subjects are provided for by Articles
1  and  7  of  the  Law  on  the Leasing of Land, the Law "On the
Procedure  of  Selling and Lease of Land Plots for Diplomatic and
Consular  Offices  of  Foreign Countries", as well as other laws.
Thus  the  aforesaid items of the Procedure of Selling and Lease,
in   essence,  merely  repeat  the  subjects  of  land  relations
provided for by laws.
     1.3.   Item   2  of  the  Procedure  of  Selling  and  Lease
establishes  that  "while selling or otherwise transferring state
land   for  non-agriculture  activities,  the  respective  county
governor  or,  upon  his  authorisation,  the  head of the county
governor's   administration  service  for  organisation  of  land
exploitation   and   geodesy  shall  represent  the  State".  The
petitioner  is  of the opinion that the provision "the respective
county  governor  [...]  shall  represent  the State" contradicts
Part   2  of  Article  77  of  the  Constitution  wherein  it  is
established  that  the  President of the Republic shall represent
the State of Lithuania.
     As  regards  this  issue,  the  Constitutional Court already
stated  its  opinion  in  its  25  September 1996 ruling where it
judged  the  conformity  of certain norms of the Law on Land with
the  Constitution  and  held  that  this  norm  of  the law is in
compliance  with  the  Constitution, thus Item 2 of the Procedure
of  Selling  and Lease is in compliance with Part 2 of Article 77
of the Constitution, too.
     Moreover,  in  the  opinion of the petitioner, Item 2 of the
Procedure  of  Selling  and  Lease  contradicts Article 99 of the
Civil  Code  wherein  it  is  established that the possessions of
the  State  and  local governments shall be managed, utilised and
disposed  of  by respective institutions of the supreme power and
government,  as  well  as those of local power and government, of
the  Republic  of  Lithuania  on  the  grounds  of laws and other
normative acts.
     In  the  case at issue, the powers of the county governor to
represent  the  state  while  making  the  contracts  of selling,
lease  and  use of state land plots are established in the Law on
Land,  the  Law  on the Governing of the County and the Procedure
of   Selling  and  Lease  approved  by  the  disputed  Government
resolution  which  particularises  these  laws.  Furthermore,  it
must  be  noted  that  local  governments  are not land owners as
yet,  therefore  they  may  not  act  as  representatives in land
property  relations  in  the  sense  of  Article  99 of the Civil
Code.
     Taking  account  of  these  motives,  a conclusion should be
drawn  that  Item  2  of  the  Procedure  of Selling and Lease as
approved  by  the disputed Government resolution is in compliance
with  Part  2 of Article 77 of the Constitution and Article 99 of
the civil Code.
     1.4.  While  assessing  the  content  of  other items of the
Procedure  of  Selling  and Lease, the Constitutional Court notes
that  the  powers  of  the  county  governor and the mayor of the
territory  of  a  local  government  in  the sphere of state land
plot  leasing  are  particularised  in  Item 3. This item repeats
and  specifies  legal  norms which were consolidated by Article 6
of  the  Law  on  Land, as well as Articles 5 and 9 of the Law on
the Leasing of Land.
     Items  4  and  5  of  the  Procedure  of  Selling  and Lease
establish   the  size  of  land  plots  which  are  allotted  for
construction  of  private  houses,  as well as the size of garden
plots  of  the  members  of  gardeners'  societies.  These  items
virtually  particularise  the  provisions formulated by Article 9
of the Law on Land Reform.
     1.5.  Items  7  and  8 of the Procedure of Selling and Lease
as  approved  by  the  disputed  Government  resolution establish
cases  of  selling  and  lease of state land plots by non-auction
procedure for non-agriculture activities.
     It  should  be  noted  that the legislator has not define in
particular  as  to  what cases state land shall be sold or leased
by  non-auction  procedure,  however,  major  provisions  of  the
procedure  of  selling  and  lease of state land plots by auction
and  non-auction  procedure  are  phrased  in  the  Law  on  Land
Reform,  the  Law  on  Land,  and the Law on the Leasing of Land.
According  to  Part  1  of Article 6 of the Law on the Leasing of
Land,  as  a  rule,  state  land  shall  be  leased by auction in
accordance  with  the  procedure  established  by the Government,
however,  in  certain  cases,  it  may  be  leased by non-auction
procedure.  This  is  provided  for by Part 2 of Article 6 of the
Law  on  the  Leasing  of  Land  wherein  it is stipulated: "Land
shall  be  leased  by  auction provided that it is not built over
with  structures  owned by the prospective lessee or is not built
over  with  structures which are owned by other persons and which
are  not  leased  with the land, and that the land is not planned
to   be   assigned,   according   to   the  territorial  planning
documents,  to  the  land  tenure  of the prospective tenant." It
should  be  noted  that  the  Law  on Land Reform commissions the
Government  with  establishing  the procedure of selling of land.
Item  6  of  Article  8  of  this Law consolidates that "in rural
areas  for  non-agriculture  activities,  and  in towns in cases,
land  shall  be  sold on the grounds of the procedure established
by the Government of the Republic of Lithuania".
     Thus,  in  the  aforementioned  items, the Government merely
specified  the  fundamentals  of  selling and lease of state land
plots  by  non-auction  procedure for non-agriculture activities.
Therefore   the  cases  of  selling  state  land  by  non-auction
procedure  as  established  by  Items  7.1.1 - 7.1.8 and those of
leasing   state   land   plots   by   non-auction   procedure  as
established  by  Items 8.1.1 - 8.1.18 of the Procedure of Selling
and  Lease  are, in essence, with the norms of various laws which
regulate  land  relations  and  with  actual  circumstances which
determine  such  a  (non-auction)  procedure of lease and selling
of  state  land.  Providing  the  said  land  plots  were sold by
auction,   the   rights   of  land  users  and  possessors  would
essentially be violated.
     1.6.  Items  7.1.9  and  8.1.19  of the Procedure of Selling
and   Lease  are  distinguished  by  their  legal  content.  They
establish  that  the  Government  may sell or lease state land by
non-auction  procedure  by  its  special decision. Although it is
established   in  item  5  of  Article  21  of  the  Law  on  the
Government  that  the  Government shall "hold, use and dispose of
State   property  according  to  the  procedures  and  situations
established  by  law",  i.e.,  it performs the state property (in
the  case  under  investigation  - state land) owner's functions,
however,  it  may  not by its acts create new norms which are not
based  on  provisions  of law. It is only the legislator that may
establish  the  manner  and  conditions  of  disposing  of  state
property   (state   land)  as  Part  2  of  Article  128  of  the
Constitution   stipulates   that   "procedures   concerning   the
management,  utilisation,  and  disposal  of State property shall
be  established  by  law".  Law does not establish any such right
of  the  Government to sell or lease land. Therefore a conclusion
is  to  be  drawn  that  the Government by granting itself such a
right  without  any legal grounds violated the norms consolidated
in Part 2 of Article 128 of the Constitution.
     It  should  be  noted that the Government right provided for
by  Items  7.1.9 and 8.1.19 of the Procedure of Selling and Lease
to   sell   or   lease   land  for  non-agriculture  purposes  by
non-auction  procedure  without  any  prior conditions may create
legal  preconditions  to  grant  exclusive  rights for individual
subjects  to  acquire  land  plots.  Thus, if compared with other
claimants  to  acquisition of land plots, individual subjects may
be  placed  at  advantageous  situation.  Therefore  a conclusion
should  be  drawn that such an ambiguity of the said items of the
Procedure  of  Selling  and  Lease  which allows to sell or lease
state   land   for   non-agriculture  activities  by  non-auction
procedure  "by  a  special  decision of the Government", i.e., by
not  binding  with  any prior conditions, does not agree with the
principle  of  fair  competition  which is consolidated in Part 4
of Article 46 of the Constitution.
     2.   On  the  compliance  of  Item  2  of  the  Republic  of
Lithuania   Government  17  July  1995  Resolution  No.  987  "On
selling  and  lease  of  state  land  plots  for  non-agriculture
activities"  with  Articles  119  and 120 of the Constitution, as
well  as  with  items  1  and  3  of  Article 9 of the Law on the
Governing of the County.
     The   Government   decided   by   Item  2  of  the  disputed
resolution:
     "To  grant  the  right  to  possess  state land to executive
institutions of local self-government:
     2.1.  in  the  territories  which  are within administrative
boundaries  approved  by  the established procedure of town local
governments,  as  well as in the territories which are attributed
to  these  towns  by  the  decisions  of  the  Government  of the
Republic of Lithuania;
     2.2.  in  the  territories  which  are within administrative
boundaries  approved  by  the  established  procedure of towns as
residential  areas,  as  well  as  in  the  territories which are
attributed  to  these towns by the decisions of the Government of
the Republic of Lithuania".
     According  to  the  Law  on  the  Territorial Administrative
Units   of  the  Republic  of  Lithuania  and  their  Boundaries,
territories   of   local   governments   shall  have  established
administrative  boundaries.  Article  7  of  this  law stipulates
that  "the  territories of local governments shall be established
and  abolished,  as well as their boundaries and centres shall be
set  and  changed  by  the Seimas of the Republic of Lithuania on
the  proposal  of  the  Government  of the Republic of Lithuania,
taking into consideration the proposals of local governments".
     Item   5  of  Article  21  of  the  Law  on  the  Government
establishes  that  the Government shall "hold, use and dispose of
State   property  according  to  the  procedures  and  situations
established  by  law".  Thus  the  Government  performs the state
property  (in  the case under investigation - state land) owner's
functions.  The  owner  or, upon his authorisation, other persons
may transfer property to other persons.
     According   to   the   Law  on  Local  Self-Government,  the
competence  of  local  self-government institutions in the sphere
of   legal   relations   in  land  possession  is  not  the  main
(independent)   one  but  merely  that  delegated  by  the  State
(Articles  14  and  16).  The  purpose  of land, if compared with
other  objects  of  immovable  property, conditions special legal
regulation  of  land  relations,  too.  The  State  delegates the
right   to   possess   state   land   to   local  self-government
institutions  and  commissions the Government to make it official
by  adopting  its decision. Thus the Government as an institution
which  implements  the  functions  of  the  state  property owner
possesses  powers  to  grant  the right to possess state property
also  to  other  subjects  pursuant to the procedure provided for
by the Constitution and laws.
     The  Government  did so by passing the said resolution which
is  disputed  by  the  petitioner  and thereby granting the state
land  possession  right  to  local  self-government institutions.
Thus  the  said  Government  resolution  is based on the norms of
the  Law  on  Land  therefore  it  is  impossible  to assert that
thereby   Articles   119   and  120  of  the  Constitution  which
consolidate  principles  of organisation and legal regulation, as
well   as   those   of  independence  for  local  self-government
institution activities, were violated.
     This  commission  of  the  legislator  to grant the right to
possess  state  land  to  local self-government institutions does
not  provide  with  the  grounds  to  maintain  that  thereby the
content  of  the  right  of local self-government institutions to
possess  land  is  established.  This  was  noted  in the said 25
September  1996  ruling  of the Constitutional Court. The content
of  the  right  to  possess land is regulated in laws (the Law on
Land,  the  Law  on  Land Reform, the Law on the Leasing of Land,
etc.).  It  means that the Seimas did not delegate the Government
the  right  to  define  the content of the right granted to local
governments  to  possess  state  land  but merely commissioned it
with  adopting  a respective administration act whereby the right
to  possess  state land were transferred to local governments. It
should  be  noted  that only then will local governments gain the
right  of  property  to  land  when the Constitutional Law on the
Subjects,  Procedure,  Terms  and  Conditions and Restrictions of
the  Acquisition  into  Ownership  of  Land Plots Provided for by
Part  2  of  Article  47  of  the Constitution of the Republic of
Lithuania   (hereinafter   in  the  ruling  referred  to  as  the
Constitutional Law) is applied.
     The  allegation  of  the  petitioner  that the competence of
the  county  governor  in  the  sphere  of  management,  use  and
disposal  of  state  land  is  limited to only fulfilment of land
reform  as  established in the Law on the Governing of the County
is  not  a  grounded  one. The county governor also fulfils other
powers  provided  for by laws. For instance, according to Article
24  of  the  Law  on  Land,  the  county  governor  shall sell or
transfer  otherwise  state  land  into  private  ownership,  make
contracts  of  sale  and  purchase as well as of lease and use of
land  plots.  According  to Part 5 of Article 9 of the Law on the
Leasing  of  Land,  the  county  governor  on the proposal by the
possessor  of  state  land shall lease or grant into use the land
to natural and legal persons for a term of more than 3 years.
     Taking  into  consideration  all  the  motives  set forth, a
conclusion   is   to  be  drawn  that  Item  2  of  the  disputed
Government  resolution  is  in  compliance  with Articles 119 and
120  of  the  Constitution, as well as items 1 and 3 of Article 9
of the Law on the Governing of the County.
     3.  On  the  compliance  of  Item  3.1  of  the  Republic of
Lithuania   Government  17  July  1995  Resolution  No.  987  "On
selling  and  lease  of  state  land  plots  for  non-agriculture
activities"  with  item  1  of  Article  9  of  the  Law  on  the
Governing  of  the  County,  as well as Articles 97 and 98 of the
Civil Code.
     3.1.  It  is  established  in  Item  3.1  of  the Government
resolution  disputed  by the petitioner that "the county governor
may  sell  or  lease  new  plots  of  state  land  by non-auction
procedure  in  rural  areas  as well as the territories indicated
in  Items  2.1  and  2.2  of  this  resolution", i.e., the county
governor  is  granted  the  right to manage state free land which
local  governments  are  commissioned to possess by Items 2.1 and
2.2  of  this resolution. This, in the opinion of the petitioner,
contradicts  item  1  of Article 9 of the Law on the Governing of
the  County  wherein  it  is established that the county governor
shall  "manage  state free land stock, with the exception of land
transferred  into  the  possession  of  the institutions of local
self-government".
     The  Government,  while  phrasing  Item  3.1, used the legal
notion  "new  plots  of  state  land" which is not identical with
the  notion  of  state free land. It is possible to conceive from
item  1,  Part  1 of Article 49 of the Law on Land that new state
land  plots  are  new  private  and  state  land  plots  and land
holdings  formed  in  the  process  of  land-use  planning. While
according  to  Part  1  of  Article  45 of the Law on Land, state
free  land  is  the  land  which  is  not allotted for the use by
natural  and  legal  persons,  is  not leased or transferred into
private  ownership.  Part  1  of  Article  2  of  the Law on Land
explains:  "'Land  plot'  means  a  portion  of  territory having
fixed  boundaries  and  the  proper purpose for which the land is
used".
     Part  2  of Article 45 of the Law on Land consolidates: "The
stock  of  the  state  free  land shall be operated by the county
governor  with  the  exception  of land which is transferred into
possession  by  local  governments  according  to  the  procedure
established  by  this  law  and the Government of the Republic of
Lithuania."  It  is similarly provided for by item 1 of Article 9
of  the  Law  on  the  Governing  of  the  County  wherein  it is
stipulated  that  the  county  governor  shall "manage state free
land  stock,  with  the  exception  of  land transferred into the
possession of self-government institutions".
     The  essence  of  land  management  is  defined in Part 3 of
Article  45  of  the  Law  on Land wherein it is established that
"upon  the  determination  of its purposive use of its particular
plots  and  upon the completion of necessary works of territorial
optimisation,  management  and  soil  improvement, the state free
land  stock  shall  be  sold, allotted for use, or leased". It is
obvious  from  the content of the norm of Part 2 of Article 35 of
the  Law  on  Land that land management is performed according to
land-use  plans  prepared and approved by the county governor. On
the  grounds  of  these plans the boundaries of the existing land
holdings  shall  be  revised;  new land holdings shall be formed;
farmsteads  and  production  facilities  shall  be  built;  roads
shall  be  laid;  ponds  shall  be made; forest shall be planted;
forests,   marshes   and  shrubbery  shall  be  transformed  into
agricultural  land.  Therefore  the management of state land must
not be linked with the disposal of this land.
     In   its  turn,  the  Government  as  an  institution  which
performs  the  functions  of  the state land owner is entitled to
establish  the  price  of  the  sold  land  and  to  allocate the
acquired  means  in certain proportionate expression to purposive
funds.
     Taking  account  of  the  motives set forth that the notions
"management"  and  "disposal  of" are not identical, a conclusion
is  to  be drawn that Item 3.1 of the Government resolution is in
compliance  with  item  1,  Article 9 of the Law on the Governing
of the County.
     3.2.   In   the   opinion   of   the  petitioner,  Item  3.1
contradicts  Articles  97  and 98 of the Civil Code wherein it is
established  that  the  object  of  public  property  law  in the
Republic  of  Lithuania  shall  be land along with other property
whereas  the  subjects  of public property law in the Republic of
Lithuania  shall  be  the  State  and local governments. Thus the
petitioner  is  of  the  opinion that the Civil Code provides for
two   independent   subjects   of   public   property   law  that
independently  exercise  the right granted them by laws to manage
public property.
     Until  the  application  of  the  Constitutional  Law, local
governments  are  not  land  owners  yet.  It means that that the
norms  of  civil law regulating property relations in general and
protecting  the  rights of subjects of property relations may not
be  applied  to  protection of not existing even though potential
or  attempted  subjective  rights  of  local  governments to land
property.
     Thus  a  conclusion  should  be  made  that  Item 3.1 of the
disputed  Government  resolution  is  in  compliance with item 1,
Article  9  of the Law on the Governing of the County, as well as
Articles 97 and 98 of the Civil Code.
     4.  On  the  compliance  of  Item  3.4  of  the  Republic of
Lithuania   Government  17  July  1995  Resolution  No.  987  "On
selling  and  lease  of  state  land  plots  for  non-agriculture
activities"  with  Part  1  of  Article 14, and Article 18 of the
Law on the Governing of the County.
     4.1.  Item  3.4  of  the  Government  resolution establishes
that  "the  county  governor  shall  decide disagreements between
legal   or   natural   persons   and   the   mayor  (board)  when
establishing  the  size,  boundaries,  purpose,  limitations  and
terms,  conformity  of  the  approved  detailed  plan of the sold
(transferred)  or  leased land plot". The petitioner alleges that
such  a  provision groundlessly broadens the regulation sphere of
the  Law  on  the  Governing  of  the County because the said law
does  not  provide  that the county governor shall be entitled to
suspend,   amend,   or   repeal   decisions   adopted   by  local
governments.
     It  should  be noted that Item 3.4 establishes the procedure
of  decision  of  disagreements which arise when establishing the
size,  boundaries,  purpose,  limitations  and terms (servitude),
conformity  of  the  approved detailed plan of the sold or leased
land  plot  as  well  as  the subjects but not, as the petitioner
alleges,  the  procedure  of suspension or amendment of decisions
adopted by self-government institutions.
     The   powers  of  the  county  governor  in  the  sphere  of
territorial  planning  are defined by Article 8 of the Law on the
Governing  of  the  County.  It provides that the county governor
shall,   in   addition  to  all  the  other  functions  indicated
therein,    establish   conditions   for   the   preparation   of
territorial   planning   documents   for   territories  of  local
governments  and  co-ordinate them and, in the prescribed manner,
supervise territorial planning.
     The  competence  of  the  county  governor  in the sphere of
territorial  planning  as  defined in the Law on the Governing of
the  County  are  not final. Part 2 of Article 11 of the said law
establishes  that  the  county governor shall also exercise other
powers  established  by the laws of the Republic of Lithuania and
Government   resolutions.   Such   powers   in   the   sphere  of
territorial   planning   are   particularised   in   the  Law  on
Territorial  Planning.  This  law  establishes  the powers of the
county   governor  in  the  sphere  of  planning  territories  of
various  levels  (item 2, Part 1 of Article 4; Part 3 of the said
article);   it   specifies   his   functions  in  the  sphere  of
preparing,  co-ordinating  and  approving  common  plans (Parts 2
and  4  of  Article 9); it defines his functions in the sphere of
organisation  of  assembling  and  management  of  data  bank  of
territorial  planning  (Part  5 of Article 21). Item 3, Part 2 of
Article   30   of   the   said  law  commissions  him  to  render
supervision  of  common  and  detailed planning of territories of
local  governments  as  well  as  that of special planning on the
level  of  local  governments,  as  well  as  natural  and  legal
persons.
     The  analysis  of  the  content  of  the aforementioned laws
permits  to  assert  that  the powers and functions of the county
governor  in  the sphere of territorial planning are exhaustively
regulated  in  laws.  The  right of the county governor to decide
disagreements   provided  for  by  Item  3.4  of  the  Government
resolution   is   consolidated   in   laws   while  the  disputed
Government  resolution  merely specifies the powers of the county
governor.
     Thus,  if  law  commissions the county governor to establish
conditions   for   the   preparation   of   territorial  planning
documents  for  territories  of  local  governments  (item  5  of
Article  8  of  the  Law on the Governing of the County), as well
as   to  render  supervision  of  planning  of  local  government
territories,  therefore  it  is  he who must decide disagreements
provided  for  by Item 3.4 of the disputed Government resolution.
This  conclusion  is  grounded  on  the  provision  of  Part 4 of
Article   39   of  the  Law  on  Territorial  Planning  that  the
organiser  of  the  territorial planning document, in this case -
the   local   government,  shall  not  have  a  right  to  render
supervision of territorial planning.
     The  petitioner  also  deems  that  Item 3.4 of the disputed
Government  resolution  contradicts  Part  1 of Article 14 of the
Law  of  the  Governing  of  the  County  which provides that the
county  governor,  when  discharging  the functions attributed to
him,  shall  co-operate  with the institutions of self-government
and  the  state. The petitioner, on the grounds of this provision
of  the  law,  alleges  that  the  relations  between  the county
governor  and  self-government  institutions  must  be limited to
co-operation.
     Article  3  of  the  Law on Territorial Planning defines the
purpose  of  territorial planning: the balancing of the territory
of   the   Republic   of   Lithuania,  the  establishing  of  the
development  of  residential  areas  policy,  the establishing of
ecological  equilibrium,  etc.  In  the  light  of the case under
investigation,  the  objective  phrased  in  item  7  of the said
article  to  co-ordinate  the  interests  of  natural  and  legal
persons  and  their  groups,  as  well as those of society, local
governments,  and  the  state  regarding the conditions of use of
territory  and  land  plots  as well as development of activities
in that territory is of importance.
     While   pursuing   the   aforementioned   objectives,  close
co-operation  of  the  subjects  who  take  part  in the planning
process   is   necessary.   The   Law   on  Territorial  Planning
establishes   such  forms  of  co-operation  and  guarantees.  It
provides   for   the  competence  and  functions  of  the  county
governor,  as  well  as those of local governments, in the sphere
of  implementation  of  common  and detailed territorial planning
(Articles  5,  6,  8,  9,  15,  and  16),  regulates  the  common
procedure  for  co-ordination  of  territorial planning documents
and  their  submission  for  approval (Article 23), the procedure
of   submission   and  consideration  of  planning  proposals  of
persons  who  are  concerned  with territorial planning (Articles
27  and  28).  Thus the Law on Territorial Planning creates legal
preconditions     for    co-operation    of    institutions    of
self-government   and   the   county   governor   while  planning
territories.
     The  Constitutional  Court, when interpreting the content of
Part  1  of  Article  14  of  the  Law  on  Territorial Planning,
emphasises   that  co-operation  is  a  universal  constitutional
principle.  Its  implementation  creates  preconditions for state
institutions   and  local  governments  alike,  while  exercising
powers  consolidated  in  laws,  to  pursue  the  common aim - to
ensure  effective  regulation  of  the  affairs  of  society  and
state.  Thus  the  independent  functions  of the county governor
and  local  governments  do  not  deny  their  co-operation. This
co-operation  manifests  itself  in  various spheres, and in this
case it does so when territories are planned.
     On  the  grounds of the motives set forth a conclusion is to
be  drawn  that  Item  3.4  of  the  Government  resolution is in
compliance  with  Part  1  of  Article  14  of  the  Law  on  the
Governing of the County.
     4.2.  The  petitioner  is  of the opinion that the provision
of  Item  3.4  of the Government resolution that decisions of the
county  governor  regarding  settling disagreements between legal
or  natural  persons  and  the mayor (board) may only be appealed
against  in  court contradicts Part 3 of Article 18 of the Law on
the   Governing   of   the  County  which  establishes  that  the
Government  shall  have  the right to repeal the orders and legal
acts  of  the  county governor if they are not in conformity with
the  Constitution  of  the  Republic  of  Lithuania, the laws and
other  legal  acts passed by the Seimas, decrees of the President
of the Republic and the resolutions of the Government.
     Article  1  of  the  Law  on  the  Governing  of  the County
establishes   that   the   county   is   a   higher   territorial
administrative  unit  of  the Republic of Lithuania the governing
of  which  shall  be  organised  by  the  Government  through the
governor  of  the  county,  the  Ministries  and other Government
institutions.  The  Government,  when  performing  supervision of
the  county  governor's  activities,  may repeal the acts adopted
by  the  county  governor  if they are not in conformity with the
Constitution,  the  laws and other aforesaid legal acts. Thus the
norm  of  Part 3 of Article 18 of the Law on the Governing of the
County  indicates  causes  and grounds under which the Government
may  repeal  legal  acts adopted by the county governor but never
does  it  regulate,  as  the petitioner alleges, the procedure of
appeal against decisions of the county governor.
     The  Law  on  Territorial Planning provides for the judicial
procedure  of  settling  disagreements which arise in the process
of  planning.  For instance, Part 8 of Article 20 of the said law
provides  that  the  decision  of the supervising institution may
be  appealed  against  in  court. As it was mentioned, the county
governor   shall  render  supervision  of  the  planning  of  the
territories  of  local  governments,  consequently  his decisions
may  be  appealed  against  in  court.  Thus  the  Government  by
establishing  in  Item  3.4  of  its resolution that decisions of
the  county  governor  may  only  be  appealed  against  in court
repeated,  in  essence,  the provisions of the Law on Territorial
Planning.  Such  a  procedure  to  settle  disagreements does not
contradict  the  constitutional  principle  of  the  priority and
universality of legal protection.
     Taking  account  of  the  motives  set  forth,  it should be
concluded  that  Item  3.4  of the disputed Government resolution
is  in  compliance  with  Part 1 of Article 14, and Article 18 of
the Law on the Governing of the County.
     5.  On  the  compliance  of Items 14, 15, 21, and 22 of "The
regulations  of  selling  and  lease  by non-auction procedure of
state  land  plots for non-agriculture activities" as approved by
the  Republic  of  Lithuania  Government  17 July 1995 Resolution
No.   987   "On  selling  and  lease  of  state  land  plots  for
non-agriculture  activities"  with  Part  2 of Article 120 of the
Constitution,  as  well  as  Part  3  of Article 14 of the Law on
Local Self-Government.
     Item   14  of  the  Regulations  of  Selling  and  Lease  as
approved  by  the  disputed  Government  resolution provides that
the  mayor,  on  his  proposal,  shall  transfer the size of land
plots  which  are  to  be  sold  (the  sketch  of  the  land plot
prepared  so  as  it is provided for in Item 6 of the Regulations
of  Selling  and  Lease  as approved by said disputed resolution)
to  the  district  agriculture  board  or  the  town  service for
organisation  of  land  exploitation  and geodesy whereas Item 15
of  the  said  resolution  provides  that  "the  mayor  shall  be
entirely  responsible  for  the accuracy and validity of the data
presented".  Item  21  of  these Regulations of Selling and Lease
also   provides   that   the   mayor  must  submit  the  district
agriculture  board  or  the town service for organisation of land
exploitation  and  geodesy  the  prescribed data characterising a
leased  land  plot  (its size and boundaries which are noted in a
copy  of  the  technical report file of the land plot plan, as it
is  required  by  Item  21.1)  while  Item  22 indicates that the
mayor   shall  be  entirely  responsible  for  the  accuracy  and
validity of the data presented.
     The  petitioner  notes  that  the  mayors  have  no physical
possibilities  to  fulfil obligations indicated in the said items
as  the  Government  grants  them  the  competence (to submit the
data  regarding  land  plots)  by  one  resolution  while  by its
another  resolution  it  deprives them with physical and material
possibilities  (services  for  organisation of land exploitation)
to fulfil these obligations.
     The  Constitutional  Court  notes  that the arguments of the
petitioner  whether  the  mayors  "are able" or "are not able" to
discharge  their  functions provided for by Items 14, 15, 21, and
22  are  applied to the possibilities of the mayor to participate
in  the  process  of  planning  in the material sense which shall
not  be  assessed  and  decided  by  the Constitutional Court but
never  are  they  applied  to the issues of normative regulation.
According   to  Article  30  of  the  Constitutional  Court,  the
Constitutional  Court  shall  investigate  and  decide only legal
issues.
     At  the  same time, the Constitutional Court holds that Part
5  of  Article 18 of the Law on Local Self-Government establishes
that  the  local  government  board  (mayor)  shall  organise the
drafting  of  a  master plan of the respective territory, as well
as  projects  and detailed plans concerning its amendments. These
issues  established  by law belong to the independence competence
of  local  governments,  therefore there are no grounds to assert
that  the  disputed items of the Regulations of Selling and Lease
contradict Part 2 of Article 120 of the Constitution.
     In  addition,  it  should  also  be noted that, according to
the  29  March 1995 Government Resolution No. 451 "On transfer of
local  governments'  functions  which are not delegated by law to
county   governors",  in  order  to  prepare  the  aforementioned
plans,  centres  of  geoinformation  systems (architect services)
are left at the command of local governments.
     The  petitioner  alleges  that the transfer procedure of the
functions  to  the  county  governors as established by aforesaid
Government  Resolution  No.  451 contradicts Part 3 of Article 14
of  the  Law  on  Local  Self-Government.  In  the opinion of the
petitioner, these functions must have been delegated by law.
     The  Constitutional  Court  notes  that  in  this  case  the
transfer  of  functions  to  the  county governor's competence is
dealt   with  and  not  the  delegation  of  functions  to  local
governments.  Therefore  there are no grounds to assert that such
a  procedure  contradicts  Part  3  of  Article  14 of the Law on
Local Self-Government.
     Taking   into   consideration   the  motives  set  forth,  a
conclusion  is  to  be drawn that Items 14, 15, 21, and 22 of the
Regulations  of  Selling  and  Lease as approved by Item 1 of the
Government  resolution  are  in compliance with Part 2 of Article
120  of  the  Constitution and Part 3 of Article 14 of the Law on
Local Self-Government.

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

     1.  To  recognise  that  Items  7.1.9  and  8.1.19  of  "The
procedure   of   selling  and  lease  of  state  land  plots  for
non-agriculture   activities"  as  approved  by  Item  1  of  the
Republic  of  Lithuania  Government  17  July 1995 Resolution No.
987   "On   selling   and   lease   of   state   land  plots  for
non-agriculture  activities"  contradict  Part  2 of Article 128,
and  Part  4 of Article 46 of the Constitution of the Republic of
Lithuania.
     2.  To  recognise that the remaining part of the Republic of
Lithuania   Government  17  July  1995  Resolution  No.  987  "On
selling  and  lease  of  state  land  plots  for  non-agriculture
activities"  is  in  compliance  with  the  Constitution  of  the
Republic  of  Lithuania, Articles 97, 98, 99 of the Civil Code of
the  Republic  of  Lithuania, as well as items 1 and 3 of Article
9,  Part  1  of  Article  14,  and  Article  18 of the Law of the
Republic of Lithuania on the Governing of the County.
  

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