Lietuviškai

                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    

                           R U L I N G                           

           On the compliance of the norms of Part 5 of           
          Article 8 and of Part 1 of Article 19 of the           
         Republic of Lithuania 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            

                    12 November 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 and Vidmantas Žiemelis,
members  of  Seimas  and  the  representatives  of a group of the
members of the Seimas of the Republic of Lithuania,
     the  party  concerned - Alfonsas Vileita, the representative
of  the  Seimas, the adviser of the Seimas Committee of State and
Law,
     pursuant  to  Part  1  of Article 102 of the Constitution of
the  Republic  of Lithuania and Part 1 of Article 1 of the Law on
Constitutional  Court  of  the  Republic  of  Lithuania,  in  its
public  hearing  on  23  October 1995 conducted the investigation
of  Case  No.  8/96  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
norm  of  Part  2  of  Article  1  of the 2 April 1996 Law of the
Republic  of  Lithuania  "On  Amending and Supplementing Articles
8,  19,  20,  21  of  the Law "On the Procedure and Conditions of
the  Restoration  of the Rights of Ownership to the Existing Real
Property"  as  well as Appending this Law by Article 211" whereby
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"  has  been appended by a new Part 5 and
if  the  norm  of  Article  2 whereby Part 1 of Article 19 of the
aforementioned  law  has  been  amended  and  supplemented are in
compliance with the Constitution of the Republic of Lithuania.

     The Constitutional Court
                        has established:                         

                                I                                
     The  Seimas  by  its  2  April  1996  Law  "On  Amending and
Supplementing  Articles  8,  19,  20,  21  of  the  Law  "On  the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership  to  the  Existing  Real Property" as well as Appending
this  Law  by  Article  211" (Official Gazette "Valstybės Žinios"
No.  37-929,  1996)  supplemented  Article  8  of the 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)  with  the  following  norm:
"Providing  a  citizen  wishes  to restore his right of ownership
to  a  dwelling-house (portion thereof or apartment) in kind, and
providing   the   said   dwelling-house   (portion   thereof   or
apartment)  may  not  be  returned in kind in pursuance of Part 2
of  this  article,  the  mayor  (board)  or the State institution
shall  inform  the  citizen  in writing and propose him to choose
the  manner  of  buying  out which is indicated in Part 4 of this
article.  Providing  the  citizen  did  not  choose the manner of
buying  out  of the dwelling-house (portion thereof or apartment)
within  3  months  from the day of reception of the proposal, the
mayor   (board)   shall   adopt  the  decision  to  buy  out  the
dwelling-house,   portion   thereof  (apartment)  for  money  and
securities."  Part  1  of Article 19 was amended and supplemented
with  this  norm:  "The institutions which are indicated in Parts
1,  2,  and  3  of  Article  18  of this Law must investigate the
requests  of  citizens  and adopt decisions regarding restoration
of   the   right   of   ownership  (with  the  exception  of  the
restoration  of  the  right  of  ownership  to  land  and forest)
within  3  months  from  the  day  of submission of the documents
proving the right to ownership."
  
                               II                                
     The  petitioner  -  a  group  of the members of the Seimas -
requests  to  investigate  if the aforesaid norms in their volume
whereby  the  conditions  and procedure of restoration in kind of
the  rights  of  ownership  to dwelling-houses are altered are in
compliance with the Constitution.
     In   his  petition,  the  petitioner  points  out  that  the
disputed  provision  of Article 8 makes it actually impossible to
retrieve  in  kind  the  dwelling-houses  which  at  present  are
occupied  by  tenants  as item 4, Part 2 of Article 8 establishes
that  "dwelling-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".
     According  to  the  provision "institutions must investigate
the   requests   of   citizens   and  adopt  decisions  regarding
restoration  of  the  right  of  ownership (with the exception of
the  restoration  of  the  right of ownership to land and forest)
within  3  months  from  the  day  of submission of the documents
proving  the  right  to ownership" of contested Article 19, while
adopting   decision   regarding   restoration  of  the  right  of
ownership  to  a  dwelling-house,  the  decision  must be adopted
whether   it  is  possible  to  return  the  house  in  kind  or,
providing  there  is  not  such a possibility, it is necessary to
compensate  the  former  owner  for his property which he used to
possess.  If  the  house subject to being returned is occupied by
the  tenants,  the  institutions  which are to pass the decision,
must,  in  addition,  adopt the decision whether they may provide
the tenants with other dwelling place within said 3 months.
     The  petitioner  alleges  that the unconditional duty of the
mayor  (board)  or any other state institution which is set forth
by  contested  provisions  of Article 8 of the Law means that the
dwelling-houses  occupied  by the tenants will not be returned to
the  owners  as  no  institution  that adopts decisions regarding
restoration  of  the  rights  of  ownership  is  not  capable  to
provide the tenants with dwelling place within 3 months.
     The  petitioner  is  of  the  opinion  that such a provision
contradicts   Part   5  of  Article  21  of  the  Law  which  was
supplemented  by  the  disputed  law,  too, which prescribes that
"persons  who  reside  in  a  dwelling-house, portion thereof, or
apartment   which  is  being  returned  to  the  owner  shall  be
provided  with  a  dwelling  place by the local government of the
respective  town  or  district pursuant to the programme prepared
and  carried  out by the Government of the Republic of Lithuania.
The  means  to  implement  such  programmes shall be provided for
yearly  from  the  State Budget". Such programmes are implemented
during  long  period  of  time and cannot be implemented within 3
months.   According  to  the  disputed  provisions  of  the  law,
however,  the  mayors  (boards) of the local governments or state
institutions  must  adopt  decisions regarding restoration of the
rights  to  ownership  to  dwelling-houses when taking no account
of   the   implementation   of  the  said  programmes.  Thus  the
returning  of  property  in  kind  becomes dependent on arbitrary
factors:  when  the documents proving the right to ownership were
submitted,  how  much  of  unoccupied dwelling place which may be
proposed  to  the tenants who live in the houses subject to being
returned   is   left   at  the  command  of  a  particular  local
government,  etc.,  but  not  on the objective circumstances (the
economical  capacity  of  the  sate).  Hence  the state loses its
opportunity   to  implement  its  major  duty  -  to  co-ordinate
different interests of social groups (owners and tenants).
     The  petitioner  alleges  that  the  legislator  by actually
abolishing   the   opportunity   to   implement  state  long-term
programmes  designed  to  provide  the  tenants who now reside in
the  dwelling  houses  which  are being returned with appropriate
dwelling  place,  at  the same time deprived the persons who wish
to  restore  their  rights  of  ownership  to  the dwelling-house
where  the  tenants  reside  of  the  opportunity to retrieve the
property   in   kind.  This  contradicts  the  principle  of  the
protection  of  the  rights  of  ownership  which is set forth in
Article  23  of the Constitution and which was interpreted by the
Constitutional  Court  for  many  a  time.  In the opinion of the
petitioner,  in  this  case the public need is to co-ordinate the
interests  of  the owners and tenants, this must be done with the
power  of  the  state  during  the  time  limits  known  for both
parties  and  not  by  immediately and unconditionally satisfying
the interests of one party.
     The  petitioner  indicates that the Constitutional Court set
forth  an  analogous  view  in its 22 December 1995 ruling: "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 allotment 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 economic problem
and  it  is being solved when discussing, adopting and fulfilling
the budget."
     The  petitioner  also  notes  that  the Constitutional Court
also  held  in  the  same ruling that "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 privatise the aforesaid
dwelling  place".  The  petitioner  is  of  the  opinion that the
interests  of  the  tenant  may  not  be  violated  as  they  are
protected  by  the  same  law.  The  tenant  is  provided with an
opportunity   to   privatise   the   dwelling  place  which  will
subsequently  be  allotted to him. Meanwhile, the interest of the
former  owner  to  restore  the  building  in  kind  is  violated
because   its   implementation   becomes   dependent   upon   the
conditions  that  are  impossible  to  fulfil: Can the Government
find  enough  means so that all the tenants who now reside in the
houses  which  are subject to being returned were actually within
3  months  at one instance in whole Lithuania provided with other
dwelling place?
     The   petitioner   concludes   that   the  law-maker  should
establish  the  duty  for  local  governments  that  they  during
certain  time  limits  by  carrying  out the Government programme
must  provide  the tenants who reside in a house which is subject
to  being  returned  with  other  dwelling place but never should
the  law-maker  establish  the  duty for the local governments or
other  institutions  that  they  immediately  recognised that the
house  where  the tenants reside is not subject to being returned
nor  the  duty  for  the  former  owner  to immediately opt for a
manner of compensation.
     In    the    process    of    judicial   investigation   the
representatives   of   the   petitioner  emphasised  that,  while
restoring  ownership  rights to real property, the main provision
is  justice.  Justice  is  understood  as a balance of interests,
and   in   this  particular  case  it  is  the  co-ordination  of
interests  of  the  former  owners and the tenants who now reside
in  the  houses  which  are  subject  to being returned. The main
interest  of  the owner is retrieval of the real property in kind
whereas  that  of  the  tenant  is  to  get  and  privatise other
dwelling  place  which corresponds to that returned to the owner.
The  co-ordination  of these interests objectively depends on the
economic  capacity  of  the  state.  Therefore  it is immoral and
illegal  to  require  that  the  issue of property restoration or
that  of  compensation  allotment  were  decided  within 3 months
while,  in  addition,  one  should  consider  the  fact  that the
compensation  is  paid  within  10  years  whereas  the budget is
accrued for one year but not for 3 months.
     The  representatives  of  the petitioner did not contest the
right  of  the  tenant  residing  in  the  house subject to being
returned   to   other   dwelling  place  which  conforms  to  the
requirements  of  law.  However,  as  the  Law  provides that the
issue  of  the  property  restoration  in kind or compensation of
the  value  of  the  property must be decided within 3 months and
while  it  is  impossible  to  restore  ownership  rights in kind
during  such  a  short  period of time, thus, if the compensation
was   allotted   to   the   former   owner,   the   principle  of
co-ordination   of   interests   would   not   be  followed.  The
representatives  of  the petitioner also deem that this procedure
provided   for   in   the  Law  contradicts  Article  29  of  the
Constitution.  Equality  of  rights  of  persons  is  violated as
implementation  of  the  rights  is  dependent  on  the  economic
capacity  of  a  particular  local government and on the fact how
much  of  the unoccupied dwelling place is at its disposal at the
given moment.
     In  the  opinion  of  the representatives of the petitioner,
when  solving  this issue, a roll of the queue of the tenants who
reside  in  the houses which are subject to being returned to the
owners  and  who  must  be provided with dwelling place must have
been  formed.  They  must  be  provided with other dwelling place
within  10  years and from state means, the dwelling place rented
by  them  may  not  be  privatised  while the local government or
another  state  institution  shall  adopt  the decision to return
the  property  to  former  owners  in  kind. The interests of the
tenants  are  protected  by  the  guarantees  for  the tenants as
provided  in  the  Law.  The  allotment  of dwelling place to the
tenants should be the priority direction of the budget.
  
                               III                               
     While  replying  to  the  Constitutional Court paper for the
party  concerned,  Pranciškus Vitkevičius, Chairman of the Seimas
Committee  of  State  and  Law,  when the case was being prepared
for  the  court hearing, explained in writing that the members of
the  Seimas  do not insistently point out in their petition as to
what   provisions   (what   articles)  of  the  Constitution  are
challenged  by  the  contested  norms.  The  petition contains an
indication  to  Article  23  of  the  Constitution,  however, the
Constitutional  Court  has  held  that  persons  whose  ownership
rights  are  not  restored  and  who  claim to restore the rights
shall  not  be  the  owners. Therefore it is impossible to assert
that   the   disputed   norms   contradict   Article  23  of  the
Constitution.  The  Chairman of the Committee points out that the
initial  wording  of the Law was not perfect. It was necessary to
amend  and  improve  the  Law  while taking account of the actual
economic  and  social  conditions and the interests of particular
groups  of  people  of  Lithuania.  The  disputed amendments were
passed on the grounds of the following reasons:
     1)  The  former  norms  of the law were vague and solving of
the  ownership  restoration  issue  was  not  limited by any time
limit  whereas  such  a  vagueness  corresponded the interests of
neither  the  former  owners  nor  the tenants. The Seimas had to
resolve this issue then.
     2)   When   resolving   the  issue  of  restoration  of  the
ownership   rights  to  existing  houses,  it  was  necessary  to
consider  the  economic  situation  of  the  state.  At the given
moment,  the  Republic  of  Lithuania  is  not capable to provide
with  dwelling  place  in  pursuance  of Article 357 of the Civil
Code  all  the tenants who reside in houses the right to property
to  which  must be restored. In addition, there exist no means to
pay  at  once  the  former  owners  all  the  price of the houses
(apartments) which formerly belonged to them.
     The  Chairman  of the Committee deems that the provisions of
the disputed law are in compliance with the Constitution.
     The  representative  of the party concerned explained during
the  process  of  judicial  investigation  that,  in his opinion,
this  amendment  of the Law was defective from its adoption as it
did  not  establish  the  procedure  of  investigation  of  prior
submitted  requests  to  restore  the  ownership  rights. A great
many  of  the  requests had to be investigated at once only after
this  amendment  had  been  adopted.  The  representative  of the
party  concerned  also emphasised that until the ownership rights
are  not  restored  to  the former owners they are not the owners
as  yet.  Thus  their rights may not be protected on the basis of
Article   23   of   the   Constitution  therefore  the  contested
provisions  of  the  Law  may  not  contradict  Article 23 of the
Constitution.
     In   the   opinion   of  the  representative  of  the  party
concerned,  the  disputed  norms  of  the  Law do not violate the
principle  of  the  equal  rights  of  people  as  established in
Article  29  of  the Constitution either because in this case the
equality   of   rights  can  be  violated  provided  the  law  is
implemented  and  as to who and how implements the norms provided
for  by  the  law.  The  same  should  be  mentioned  as  regards
equality  of  rights  of  persons  when adopting the norms of the
law.  The  law  shall  be amended when taking account of changing
socio-economic  circumstances  as  well  as  those which were not
considered when the law was being adopted.

     The Constitutional Court
                           holds that:                           

                                I                                
     The  restitution  of  the  constitutional  institute  of the
right  of  private  ownership  is  to be linked with the 11 March
1990  Republic  of  Lithuania Law "On the Reinstatement of the 12
May  1938  Constitution  of  Lithuania".  By adopting the Law "On
the  Procedure  and  Conditions  of the Restoration of the Rights
of  Ownership  to  the  Existing  Real  Property", the legislator
based  himself  on  the concept that the constitutional institute
of  the  right of private ownership had already been restored and
that   it   had   to  be  actually  implemented.  Alongside,  the
principal  provision  was consolidated that the protection of the
ownership  rights  which  had  been violated during the period of
occupation  means  that the ownership rights shall be restored to
existing  real  property  by, first of all, returning it in kind.
And  only  providing  it  is impossible to return the property in
kind  because  of  the  conditions enumerated in the Law it shall
be  compensated  in  other  manner  at  the  option of the former
owner as it is established in the Law.
     When  restoring  the  ownership  rights  to dwelling-houses,
portions  thereof,  apartments,  the  Law  does  not  ignore  the
legitimate   interests   of   the   tenants.  In  this  case  the
regulation  role  of  law  manifests itself in that the rights of
former  owners  and  the  legitimate  interests  of  tenants  are
co-ordinated.  When  the  house  is returned to the former owner,
the  interests  of  tenants  are protected by providing them with
other  dwelling  place.  While  assessing the disputed appendages
of  the  Law  concerning  the restoration of the ownership rights
to  dwelling-houses,  it  is  necessary,  first  of  all, to take
account   of   the   legal  aspects  of  co-ordination  of  these
interests.
  
                               II                                
     The  Seimas  by  its  2  April  1996  Law  "On  Amending and
Supplementing  Articles  8,  19,  20,  21  of  the  Law  "On  the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership  to  the  Existing  Real Property" as well as Appending
this  Law  by  Article 211" supplemented Article 8 of the Law "On
the  Procedure  and  Conditions  of the Restoration of the Rights
of  Ownership  to  the Existing Real Property" with the following
norm:  "Providing  a  citizen  wishes  to  restore  his  right of
ownership  to  a dwelling-house (portion thereof or apartment) in
kind,  and  providing the said dwelling-house (portion thereof or
apartment)  may  not  be  returned in kind in pursuance of part 2
of  this  article,  the  mayor  (board)  or the State institution
shall  inform  the  citizen  in writing and propose him to choose
the  manner  of  buying  out which is indicated in Part 4 of this
article.  Providing  the  citizen  did  not  choose the manner of
buying  out  of the dwelling-house (portion thereof or apartment)
within  3  months  from the day of reception of the proposal, the
mayor   (board)   shall   adopt  the  decision  to  buy  out  the
dwelling-house,   portion   thereof  (apartment)  for  money  and
securities."  Part  1  of  Article  19 was supplemented with this
norm:  "The  institutions  which are indicated in Parts 1, 2, and
3  of  Article  18  of  this Law must investigate the requests of
citizens  and  adopt decisions regarding restoration of the right
of  ownership  (with  the  exception  of  the  restoration of the
right  of  ownership to land and forest) within 3 months from the
day   of  submission  of  the  documents  proving  the  right  to
ownership."
     The  disputed  supplements  must  be  interpreted along with
other  norms  of  the  Law.  Part  2  of  Article  8  of  the Law
prescribes  the  cases  under which the dwelling-houses, portions
thereof,  apartments  shall  be  returned  in  kind.  Part  4  of
Article  8  of  the Law establishes that "in all other cases, not
specified  in  Part  2  of  this  Article, the ownership right to
dwelling-houses  (or  portions  thereof, apartments) shall not be
returned  in  kind  and  the ownership right shall be restored by
buying  them  out from the persons indicated in Article 2 of this
law  at  their  option  in the following manner: [...]". Upon the
association  of  the  disputed  supplements of the Law with these
norms,  it  is  possible  to  understand  that the aforementioned
supplements   may   be   applied  to  some  cases  regarding  the
returning  of  dwelling-houses,  portions  thereof, apartments in
kind  and  which  are  enumerated  in  Part 2 of Article 8 of the
Law.
     In   the   process   of   the  judicial  investigation,  the
petitioner,  as  well  as  his  representatives,  in his petition
interpreted  the  defectiveness  of  the contested supplements by
associating  them  with  the  norm of item 4, Part 2 of Article 8
of  the  Law  which stipulates that providing a citizen wishes to
retrieve  the  dwelling-house  in  kind  in  the  case that it is
occupied  by  the  tenants  he  shall  be proposed to restore his
ownership  rights  by  buying  the said house out by the state in
the  manner  provided  for  by the Law. Provided the former owner
does  not  wish  that  his  ownership rights were restored by the
manner  of  buying out or he does not choose the manner of buying
out  within  the  period  of  3 months and wishes to retrieve the
house  in  kind  then  the  institution  which  investigates  the
request  of  the  citizen  to  restore  the ownership rights must
adopt  the  decision to buy out this property against the will of
the  former  owner.  Such a period of time is not a realistic one
as  it  is  impossible  to  provide  all  the  tenants with other
dwelling  place  during  a  very short period of time, neither is
it  possible  to  pay  the  former  owners  compensations for the
dwelling-houses  which  are  not returned. The petitioner and his
representatives   are   of   the   opinion   that   the  disputed
supplements  of  the  Law  deny  the  possibility  to restore the
ownership rights to dwelling-houses in kind.
     Thus  the  Constitutional  Court  will  assess  the disputed
supplements   of   the   Law  in  the  volume  whereby  the  said
supplements  are  related  to  item 4, Part 2 of Article 8 of the
Law,  i.e.,  with  the  opportunity  to retrieve dwelling-houses,
portions  thereof,  apartments  in  kind  in the case the tenants
reside therein.
  
                               III                               
     The  legal  norm  by  which  the  state  loads itself with a
respective  responsibilities,  in  this  case  -  to  provide the
tenants  who  reside  in the houses, portions thereof, apartments
which  are  subject  to  being returned to the former owners with
corresponding  dwelling  place - must be grounded on material and
financial   resources.   Otherwise   this   legal   norm  becomes
ineffective, it is impossible to make use of it (ius nudum).
     Part  5  of  Article  21 of the Law establishes that persons
who  reside  in  a  dwelling-house, portion thereof, or apartment
which  is  being  returned  to the owner shall be provided with a
dwelling  place  by  the  local government of the respective town
or  district  pursuant  to the programme prepared and carried out
by  the  Government  of the Republic of Lithuania while the means
to  implement  such  programmes shall be provided for yearly from
the  State  Budget.  While  implementing  the Law, the Government
adopted  its  27  October  1992 Resolution No. 805 "On Programmes
to  Provide  Tenants Who Live in Houses Subject to Being Returned
to  Former  Owners with Apartments". It provides for material and
financial  measures  aimed  at  providing  the tenants with other
dwelling place until the year 2000 and afterward.
     Along  with  these guaranties, the right to state support is
provided  for  the  tenants  (item  2,  Part  1 of Article 9, and
Article  14  of  the  Law  "On  Enabling  the  Population  of the
Republic  of  Lithuania  in  Providing  Themselves  with Dwelling
Places"),  as  well as the right to other appropriately furnished
dwelling  place  (item  4, Part 2 of Article 8 of the Law, Part 1
of  Article  356  of the Civil Code), as well as the right to buy
out   the  allotted  other  dwelling  place  making  use  of  the
deposited   state   extraordinary  disbursements  (vouchers)  and
other  purposive  compensations  (Article 211 of the Law, Article
2   of   the   Law   "On   Utilisation   of  State  Extraordinary
Disbursements  and  Other  Purposive  Compensations",  as well as
other guarantees (Parts 6-8 of Article 21 of the Law).
     The   Constitutional   Court   has  also  held  that,  while
restoring  the  ownership  rights, it is necessary to co-ordinate
the  interests  of  former  owners  with public interests (the 27
May  1994  and  8  March  1995  rulings) as well as to bring into
accord  the  lawful interests of former and present owners of the
same  property  as  well  as  those of the tenants, occupying the
houses  subject  to  being  restored  (the  15  June  1994 and 22
December 1995 rulings).
     According  to  the disputed supplements of Articles 8 and 19
of  the  Law,  the  former  owners  are  deprived of the right to
retrieve  the  dwelling-houses,  portions  thereof, apartments in
kind.   Thus   the  new  legal  norm  does  not  co-ordinate  the
interests  of  certain  social groups - the former owners and the
tenants  who  reside  in the houses, portions thereof, apartments
of  the  former  owners.  On  the  contrary, in the case that the
former  owner  wishes  to  retrieve  the  property  in  kind, the
priority  of  the  tenant's  interests  protection is established
which  is  not  in  conformity with the constitutional protection
of the right to property.
                               IV                                
     In  the  theory  of  law,  as  well  as  in  the practice of
application  of  legal  acts,  the principle is followed that the
material  legal  norms  have the priority in regard of procedural
legal  norms.  As  a  rule, the latter are of official character,
i.e.,  they  are aimed at implementation of material legal norms.
Article  8  of  the  Law  contains  legal norms of two types: the
material  legal  norms  establishing  conditions  under which the
ownership   right   are  restored  (the  dwelling-house,  portion
thereof,  or  apartment  is  returned  in kind or bought out) and
the  procedural  legal  norms  establishing the procedure whereby
the  ownership  rights  are  restored  providing  there exist the
conditions established by the material norms of the Law.
     The  contested  provisions  of  Part  5  of  Article  8  are
virtually  to  be  assessed  as  procedural  norms. However, when
conforming  to  these  norms  and the supplement of Article 19 of
the  Law,  the  mayor (board) of the local government of the town
(district)  or  the  state  institution  (Part 2 of Article 18 of
the   Law)  must  adopt  the  decision  that  the  dwelling-house
portion  thereof,  apartment  of the former owner shall be bought
out  in  the  case  that  it is occupied by the tenants. Thus, on
the   grounds  of  the  procedural  norm,  the  former  owner  is
deprived  of  the  opportunity to restore his ownership rights by
retrieving the property in kind.
     The    Constitutional   Court   already   investigated   the
compliance   of   the   norm  of  item  4  stipulating  that  the
dwelling-houses   (or  portions  thereof),  apartments  shall  be
returned  in  kind  in  the  case  that  "the  tenants who occupy
houses,   portions   thereof,  or  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"  with  the  Constitution. The Constitutional Court
held  in  its  22  December  1995  ruling that 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. Only then
may   the  former  owner  retrieve  the  dwelling-house,  portion
thereof, apartment in kind when this condition is fulfilled.
     As  it  was mentioned, the guarantees established by laws as
well  as  the  programme  of  providing  the  tenants  with other
dwelling  place  virtually  condition the time period of carrying
out  the  restoration  of  the ownership rights in kind. However,
the  norm  of  Part  5  of  Article  8  of  the  Law imperatively
establishes  the  concrete  time  period of 3 months from the day
of  the  proposal  to  choose the manner of buying out the house,
portion  thereof,  apartment.  Provided the citizen who wishes to
retrieve  the  dwelling-house,  portion  thereof, or apartment in
kind  does  not  choose the manner of buying out in the case that
there  exists  the  condition  provided  for by item 4, Part 2 of
Article  8  of  the  Law, then the institutions which investigate
citizens'  requests  to restore their ownership rights must adopt
decisions   pursuant  to  administrative  procedure  (Part  1  of
Article  19  of the Law) to restore the ownership rights but only
by   buying   out   the  dwelling-houses,  portions  thereof,  or
apartments   from  the  former  owners.  This  norm  altered  the
principal  provision  of  the  Law that while restoring ownership
rights  priority  shall  be  given to restoration of the property
in  kind.  The fact that by the aforesaid groundlessly short time
periods  the  process  of the restoration of the ownership rights
by   retrieving   the   dwelling-houses,   portions  thereof,  or
apartments   in   kind   is   actually   ceased  contradicts  the
constitutional provisions of the protection of property rights.
  
                                V                                
     It  should  be noted that the persons whose ownership rights
to   dwelling-houses,   portions   thereof,   or  apartments  are
restored  in  case  they  are  occupied  by  the  tenants  had an
opportunity  to  retrieve  them in kind until the adoption of the
contested  amendments  of  the Law and when the implementation of
these  rights  was  not bound by concrete time limits. Under such
conditions,  part  of  the  former  owners have already retrieved
dwelling-houses,    portions   thereof,   apartments   in   kind.
Meanwhile,  the  disputed supplements of Articles 8 and 19 of the
Law  obligate  the institutions of state governing to resolve the
issue  of  the  restoration  of  ownership  rights  during a very
short  time  period.  Thereby  the  process of the restoration of
the  ownership  rights  by  the  main  manner provided for by the
Law,  i.e.,  to  return the dwelling-houses, portions thereof, or
apartments  in  kind,  is  actually ceased. The former owners who
have  not  retrieved  the  dwelling-houses,  portions thereof, or
apartments,  in  essence,  loose the opportunity to retrieve them
under  the  contested  supplements  of  the  Law.  This  is to be
treated  as  the  violation  of  the principle of the equality of
people which is consolidated in Article 29 of the Constitution.
     On   the   grounds   of   the   motives   set   forth,   the
Constitutional  Court  concludes that the disputed supplements of
Articles  8  and  19  of the Law contradict Articles 23 and 29 of
the Constitution.

     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:                             

     To  recognise  that  the norms of Part 5 of Article 8 and of
Part  1  of  Article  19 of the Republic of Lithuania Law "On the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership   to  the  Existing  Real  Property"  in  their  volume
whereby  the  possibility  of  the  former  owners to retrieve in
kind  dwelling-houses,  portions thereof, or apartments when they
are  occupied  by the tenants is denied as established in item 4,
Part  2  of  Article  8 of this law contradict Articles 23 and 29
of 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.