Case No. 25/2007
                                                                 
      THE CONSTITUTIONAL COURT OF THE REPUBLIC OF LITHUANIA
                                
                              RULING
      ON THE COMPLIANCE OF RESOLUTION OF THE GOVERNMENT  OF
      THE  REPUBLIC OF LITHUANIA NO. 1154 "ON  CONFIRMATION
      OF  FOREST AREAS OF STATE IMPORTANCE" OF 23   OCTOBER
      1997   (WORDING  OF  3  NOVEMBER  2004)  WITH     THE
      CONSTITUTION  OF  THE  REPUBLIC  OF  LITHUANIA    AND
      PARAGRAPH  2 (WORDING OF 3 AUGUST 2001) OF ARTICLE  4
      AND ITEM 1 (WORDING OF 23 MARCH 2004) OF PARAGRAPH  2
      OF ARTICLE 5 OF THE REPUBLIC OF LITHUANIA LAW ON  THE
      RESTORATION OF THE RIGHTS OF OWNERSHIP OF CITIZENS TO
      THE EXISTING REAL PROPERTY
                          9 March 2010
                             Vilnius
                                
     The  Constitutional  Court  of the Republic  of   Lithuania,
composed  of  the Justices of the Constitutional  Court   Armanas
Abramavičius,   Toma  Birmontienė,  Pranas  Kuconis,     Kęstutis
Lapinskas, Zenonas Namavičius, Ramutė Ruškytė, Egidijus Šileikis,
Algirdas Taminskas, and Romualdas Kęstutis Urbaitis,
     with the secretary of the hearing—Daiva Pitrėnaitė,
     in  the presence of the representative of the Government  of
the  Republic  of Lithuania, the party concerned, who  was   Agnė
Murauskaitė,  Head of the Law Application Division of the   Legal
Department  of  the Ministry of Environment of the  Republic   of
Lithuania,
     pursuant to Articles 102 and 105 of the Constitution of  the
Republic  of  Lithuania  and  Article  1  of  the  Law  on    the
Constitutional Court of the Republic of Lithuania, in its  public
hearing  on  2 March 2010 heard constitutional justice case   No.
25/2007  subsequent  to  the petition (No.  1B-28/2007)  of   the
Klaipėda   Regional   Administrative  Court,  the     petitioner,
requesting to investigate whether Resolution of the Government of
the Republic of Lithuania No. 1370 "On Amending Resolution of the
Government of the Republic of Lithuania No. 1154 'On Confirmation
of  Forest  Areas of State Importance' of 23 October 1997" of   3
November 2004 to the extent that a land lot, to which one aspires
to  restore the rights of ownership in kind, was assigned,  under
the schemes drafted by the Ministry of Environment, to the forest
areas  of state importance is not in conflict with Article 23  of
the Constitution of the Republic of Lithuania and Paragraph 2  of
Article 4 and Item 1 of Paragraph 2 of Article 5 of the  Republic
of  Lithuania  Law on Restoration of the Rights of Ownership   of
Citizens to the Existing Real Property.

     The Constitutional Court
                        has established:

                                I
     The Klaipėda Regional Administrative Court, the  petitioner,
was investigating an administrative case. By its ruling, the said
court suspended the consideration of the case and applied to  the
Constitutional  Court with a petition, requesting to  investigate
whether Government Resolution No. 1370 "On Amending Resolution of
the  Government  of  the  Republic of  Lithuania  No.  1154   'On
Confirmation  of Forest Areas of State Importance' of 23  October
1997"  of  3 November 2004 to the extent that, according to   the
petitioner,  the  land  of A. M., the former  owner,  which   was
recorded as vacant (non-built-up) land by Decision of the Palanga
City  Municipality  No. 75 of 13 June 2003, and with  regard   to
which,  subsequent  to  the schemes drafted by the  Ministry   of
Environment, the plan, size, boundaries, limitations and value of
the  land lot (Vanagupės St. 46, Palanga) to be returned in  kind
were confirmed by Order of Director of the Administration of  the
Palanga  City Municipality No. A1-4.1.-359 of 16 June 2004,   was
assigned  to  the  forest areas of state importance  is  not   in
conflict  with Article 23 of the Constitution and Paragraph 2  of
Article  4 and Item 1 of Paragraph 2 of Article 5 of the Law   on
Restoration  of  the  Rights  of Ownership of  Citizens  to   the
Existing Real Property.

                                II
     The petition of the Klaipėda Regional Administrative  Court,
the petitioner, is substantiated by the fact that when a  citizen
asked to adopt a decision to restore the rights of ownership to a
land  lot in the town of Palanga, this lot was included into  the
lists of forest areas of state importance approved by  Government
Resolution No. 1370 "On Amending Resolution of the Government  of
the  Republic  of Lithuania No. 1154 'On Confirmation of   Forest
Areas  of  State Importance' of 23 October 1997" of  3   November
2004.  The petitioner had a doubt whether the Government, by  its
resolution,  reasonably assigned the land, which was held by  the
citizen  A. M. until the nationalisation, to the forest areas  of
state importance without taking a decision regarding the  request
submitted  by the claimant to restore the rights of ownership  to
the  said land. The petitioner believes that after this land  had
been  assigned  to the forest areas of state importance  by   the
Government   resolution,  the  claimant  was  deprived  of     an
opportunity  to  restore the rights of ownership to  this   land,
therefore,  the  petitioner doubts whether the legal   regulation
established in this Government resolution is not in conflict with
Article 23 (property shall be inviolable, the rights of ownership
shall  be protected by laws, and property may be taken over  only
for  the needs of society according to the procedure  established
by  law and shall be justly compensated for) of the  Constitution
and  Paragraph 2 (land shall be given back in kind in the  former
locality)  of  Article 4 and Item 1 (the rights of ownership   to
land  shall be restored by giving back in kind the  vacant  (non-
built-up)  land  in the former locality, the plans of which   are
approved  by the director of the municipal administration   under
procedure  established  by  the Government) of  Paragraph  2   of
Article 5 of the Law on Restoration of the Rights of Ownership of
Citizens to the Existing Real Property.

                               III
     In  the  course  of  the preparation of the  case  for   the
Constitutional Court hearing, written explanations were  received
from  A. Murauskaitė, the representative of the Government,   the
party concerned, wherein it is maintained that the disputed legal
regulation was not in conflict with the Constitution and with the
aforesaid  provisions of the Law on Restoration of the Rights  of
Ownership of Citizens to the Existing Real Property.
     The  position of A. Murauskaitė, the representative of   the
Government,  the  party  concerned,  is  substantiated  by    the
following arguments.
     1.  From a fragment of the Scheme of Forest Areas of   State
Importance  of  the  State Forests Cadastre of the  Republic   of
Lithuania,  as  well  as from additional  graphical  and   visual
material, which was presented by the State Forest Survey  Service
it is clear that there is forest on the disputed land lot  (basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests  of  the  Palanga Forestry Unit of the  Kretinga   Forest
Enterprise  (hereinafter  referred  to as basic forest  lot   28,
Section 105 of the Palanga City Municipality forests), which  was
assigned  to the forest areas of state importance by   Government
Resolution No. 1370 "On Amending Resolution of the Government  of
the  Republic  of Lithuania No. 1154 'On Confirmation of   Forest
Areas  of  State Importance' of 23 October 1997" of  3   November
2004.  The  submitted forest evaluation indexes and  the   visual
material demonstrate that the forest which grows on the said  lot
conforms to the criteria of forest established in Paragraph 1  of
Article  2  of the Republic of Lithuania Forestry Law: it  is   a
tract  of land the area of which is not less than 0.1   hectares,
covered by trees, the adult height of which in their growth place
reaches  not  less  than  5  meters,  other  forest   vegetation,
including  sparse area or area that lost vegetation due to  human
activity  or  natural  causes  (felling  areas,  burned    areas,
clearings).  The specified forest is within the territory of  the
town of Palanga, therefore it is ascribed to the category of town
forests,  whereas,  under  Article 5 of the Forestry  Law,   town
forests are forests of state importance.
     2.  Town  forests  have a special  ecological  value.   They
improve the quality of city environment and diminish the negative
impact on the latter. Town forests also perform important  social
and  recreational functions, while securing quality rest of   the
public  in  urban  areas.  The  legal  regulation    establishing
limitation to the restoration of the rights of ownership to  town
forests  is aimed at protecting other values (natural  resources,
environment)  which are defended by the Constitution,   therefore
such limitations are legitimate and necessary.
     3.  When the Government implements the powers granted to  it
by  law  to  approve  the  schemes  of  forest  areas  of   state
importance, the status of the forest which is in the territory of
a town is not changed due to inclusion of town forests into  such
schemes:  the legal regime is applied to such a forest. Even   if
the Government did not include an area, which is in the territory
of a town and which conforms to the criteria of forest, into  the
schemes of forests areas of state importance, under the  Forestry
Law,  such  territory  would be regarded as a  forest  of   state
importance,  which  is exclusive ownership of the state and   the
rights of ownership could not be restored to it.

                                IV
     At  the  Constitutional Court hearing, A. Murauskaitė,   the
representative of the Government, the party concerned,  virtually
reiterated  the arguments set forth in her written   explanations
and  answered  to  questions of justices of  the   Constitutional
Court.

     The Constitutional Court
                           holds that:

                                I
     1.   The  Klaipėda  Regional  Administrative  Court,     the
petitioner, requests to investigate whether Government Resolution
No.  1370  "On  Amending  Resolution of the  Government  of   the
Republic  of Lithuania No. 1154 'On Confirmation of Forest  Areas
of  State Importance' of 23 October 1997" of 3 November 2004   to
the extent that, according to the petitioner, the land of A.  M.,
the  former  owner, which was recorded as vacant   (non-built-up)
land  by Decision of the Palanga City Municipality No. 75 of   13
June  2003, and with regard to which, subsequent to the   schemes
drafted  by  the  Ministry  of  Environment,  the  plan,    size,
boundaries, limitations and value of the land lot (Vanagupės  St.
46,  Palanga) to be returned in kind were confirmed by Order   of
Director  of the Administration of the Palanga City  Municipality
No. A1-4.1.-359 of 16 June 2004, was assigned to the forest areas
of  state  importance is not in conflict with Article 23 of   the
Constitution and Paragraph 2 of Article 4 and Item 1 of Paragraph
2  of  Article  5  of the Law on Restoration of  the  Rights   of
Ownership of Citizens to the Existing Real Property.
     2. On 3 November 2004, the Government adopted Resolution No.
1370 "On Amending Resolution of the Government of the Republic of
Lithuania  No.  1154 'On Confirmation of Forest Areas  of   State
Importance'  of  23  October 1997" which came into  force  on   7
November 2004.
     This Government resolution prescribed:
     "1. To amend Resolution of the Government of the Republic of
Lithuania  No.  1154 'On Confirmation of Forest Areas  of   State
Importance'  of  23  October 1997  (Official  Gazette   Valstybės
žinios, 1997, No. 97-2451; 2002, No. 54-2121; 2003, No.  74-3443;
2004, No. 26-815, No. 143-5233):
     1.1. To set forth Item 1 as follows:
     '1.  To  confirm  the forest areas of state  importance   of
1093.71  thousand hectares (attached) subsequent to the   schemes
drafted by the Ministry of Environment.'
     1.2. To set forth in a new wording the forest areas of state
importance confirmed by the said resolution (attached).
     2.  To commission the Ministry of Environment to submit  the
schemes  specified in Item 1 to chiefs of counties and to   other
interested institutions."
     3.  Thus,  Government  Resolution  No.  1370  "On   Amending
Resolution  of  the Government of the Republic of Lithuania   No.
1154 'On Confirmation of Forest Areas of State Importance' of  23
October  1997"  of  3 November 2004  amended  the   corresponding
provisions  of  Government  Resolution No. 1154 (wording  of   23
September  2004), inter alia it newly confirmed the forest  areas
of state importance.
     One is to draw a conclusion that the petitioner requests  to
investigate   whether   Government  Resolution  No.  1154     "On
Confirmation  of Forest Areas of State Importance" of 23  October
1997  (wording of 3 November 2004) (hereinafter also referred  to
as  Government Resolution No. 1154 (wording of 3 November  2004))
is  not in conflict with Article 23 of the Constitution and  with
respective  articles of the Law on Restoration of the Rights   of
Ownership of Citizens to the Existing Real Property.
     4.  Government  Resolution No. 1154 (wording of 3   November
2004)  has  a  constituent part titled "Forest  Areas  of   State
Importance"  which  inter alia confirmed forest areas  of   state
importance  of  3.33  thousand  hectares  to  the  Palanga   City
Municipality (Section 19).
     5.   The  Klaipėda  Regional  Administrative  Court,     the
petitioner,  does  not  indicate the wording of Paragraph  2   of
Article  4 and that of Item 1 of Paragraph 2 of Article 5 of  the
Law on Restoration of the Rights of Ownership of Citizens to  the
Existing  Real Property with which, in its opinion, the  disputed
Government Resolution No. 1154 (wording of 3 November 2004) is in
conflict  (to  the corresponding extent); it is clear  from   the
arguments  of  the petition and the case material that they   are
Paragraph  2 (wording of 3 August 2001) of Article 4 and Item   1
(wording of 23 March 2004) of Paragraph 2 of Article 5 of the Law
on  Restoration  of the Rights of Ownership of Citizens  to   the
Existing Real Property.
     6. As it is obvious from the material in the  constitutional
justice case at issue, inter alia from fragment No. P0707-0013 of
the  Scheme  of  Forest Areas of State Importance of  the   State
Forests  Cadastre  of the Republic of Lithuania of 30 July   2007
submitted  by the State Forest Survey Service (under Item 15   of
the Regulations for the State Forests Cadastre of the Republic of
Lithuania  approved by Item 2 of Resolution of the Government  of
the Republic of Lithuania No. 1255 "On Founding the State Forests
Cadastre  of  the  Republic of Lithuania and  on  Approving   Its
Regulations"  of 9 October 2003, the State Forest Survey  Service
is the establishment managing the cadastre), the forest areas  of
state  importance  of  3.33 thousand hectares confirmed  to   the
Palanga  City  Municipality  by Government Resolution  No.   1154
(wording  of 3 November 2004) also encompassed the lot which   is
situated in basic forest lot 28, Section 105 of the Palanga  City
Municipality  forests (the rights of ownership are sought to   be
restored in kind to a part of this lot).
     7.  Thus, the Constitutional Court will investigate  whether
Government  Resolution No. 1154 "On Confirmation of Forest  Areas
of  State Importance" of 23 October 1997 (wording of 3   November
2004) to the extent that the forest areas of state importance  of
3.33 thousand hectares confirmed (subsequent to the corresponding
scheme  drafted  by the Ministry of Environment) to the   Palanga
City  Municipality also encompasses basic forest lot 28,  Section
105  of the Palanga City Municipality forests is not in  conflict
with Article 23 of the Constitution and Paragraph 2 (wording of 3
August  2001) of Article 4 and Item 1 (wording of 23 March  2004)
of  Paragraph  2 of Article 5 of the Law on Restoration  of   the
Rights of Ownership of Citizens to the Existing Real Property.
     8.  It needs to be noted that the fact whether the  concrete
person  reasonably aspires to restore the rights of ownership  to
the  said disputed lot is not a matter of investigation in   this
constitutional justice case. The decision of these questions  are
within  the  jurisdiction of the court that is  considering   the
corresponding case on restoration of the rights of ownership.

                                II
     On  the  compliance of Government Resolution No.  1154   "On
Confirmation  of Forest Areas of State Importance" of 23  October
1997  (wording of 3 November 2004) to the extent that the  forest
areas  of  state importance of 3.33 thousand hectares   confirmed
(subsequent  to the corresponding scheme drafted by the  Ministry
of  Environment)  to the town of Palanga also encompasses   basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests with Paragraph 2 (wording of 3 August 2001) of Article  4
and Item 1 (wording of 23 March 2004) of Paragraph 2 of Article 5
of the Law on Restoration of the Rights of Ownership of  Citizens
to the Existing Real Property.
     1.  In the opinion of the petitioner, Government  Resolution
No. 1154 "On Confirmation of Forest Areas of State Importance" of
23 October 1997 (wording of 3 November 2004) to the corresponding
extent  is in conflict inter alia with Paragraph 2 (wording of  3
August  2001) of Article 4 and Item 1 (wording of 23 March  2004)
of  Paragraph  2 of Article 5 of the Law on Restoration  of   the
Rights of Ownership of Citizens to the Existing Real Property due
to  the fact that after basic forest lot 28, Section 105 of   the
Palanga  City  Municipality forests had been assigned to   forest
areas  of state importance by the disputed Government  resolution
without taking a decision regarding the request submitted by  the
claimant  to restore the rights of ownership to the said land  in
kind, the claimant, according to the petitioner, was deprived  of
an opportunity to implement this right.
     2.  In  the context of the constitutional justice  case   at
issue  first  of all it is necessary to elucidate the notion   of
forest,  the concept of forests of state importance, as well   as
the purpose and status of basic forest lot 28, Section 105 of the
Palanga City Municipality forests.
     3.  When the independent State of Lithuania was restored  on
11  March 1990, the Code of Forests of the Republic of  Lithuania
adopted  on  21 June 1979 was in force, under Article 1   whereof
this  code regulated forestry relations, while under Paragraph  1
of  Article  28 of this code, forests of state  importance   were
distributed  in first, second, and third groups. Paragraph 2   of
Article  28 of the said code prescribed that "to the first  group
shall  belong  the  forests  which perform first  of  all   these
functions:  <...> sanitary-hygienic and wellness (town   forests,
<...>)".
     4.  On  22  November 1994, the Seimas of  the  Republic   of
Lithuania adopted the Republic of Lithuania Forestry Law (it came
into  force on 1 January 1995). Under Article 27 of the  Forestry
Law  (wording  of 22 November 1994), upon the entry of this   law
into force, the Code of Forests became no longer valid.
     In  the context of the constitutional justice case at  issue
it  needs  to  be noted that the features according to  which   a
respective  land  lot is regarded as forest were established   in
Paragraph  3  of  Article 3 of the Forestry Law (wording  of   22
November  1994):  forest is defined as a tract of land not   less
than  0.1  ha,  covered by trees or other forest  vegetation   or
temporary lost of it (cleared or burned areas). The Forestry  Law
(wording  of  22 November 1994) was amended and/or   supplemented
more  than once, however, the said legal regulation   established
therein remained intact till 1 July 2001.
     On  10  April  2001,  the Seimas adopted  the  Republic   of
Lithuania  Law on Amending the Forestry Law by Article 1  whereof
the  Forestry Law (wording of 22 November 1994) was amended   and
set  forth in a new wording. Under Article 1 of the Republic   of
Lithuania Law on Implementing the Forestry Law, which was adopted
on  the same day, the Forestry Law of the new wording came   into
force  on  1  July 2001. Under Paragraph 1 of Article 2  of   the
Forestry Law (wording of 10 April 2001) forest is a tract of land
the  area  of  which is not less than 0.1 hectares,  covered   by
trees,  the adult height of which in their growth place   reaches
not less than 5 meters, other forest vegetation, including sparse
area  or  area  that lost vegetation due to  human  activity   or
natural  causes  (felling areas, burned areas,  clearings).   The
Forestry  Law (wording of 10 April 2001) has been amended  and/or
supplemented  more than once, however, the said legal  regulation
established therein has remained intact.
     5. The material of the constitutional justice case at issue,
inter  alia the data submitted by competent state   institutions,
allow  to state that part of the land of its former owner A.  M.,
to  which the restoration of the rights of ownership in kind   is
being sought:
     -  is  covered by basic forest lot 28, Section 105  of   the
Palanga  City Municipality forests, which is assigned to   forest
areas  of state importance by Government Resolution No. 1370  "On
Amending  Resolution  of  the  Government  of  the  Republic   of
Lithuania  No.  1154 'On Confirmation of Forest Areas  of   State
Importance'  of 23 October 1997" of 3 November 2004 (Document  of
the  State  Forest  Survey  Service No. 576  "On  Submission   of
Information"  of  31 July 2007, fragment No. P0707-0013  of   the
Scheme  of Forest Areas of State Importance of the State  Forests
Cadastre of the Republic of Lithuania of 30 July 2007);
     - was attributed to the territory of the town of Palanga  as
far back as in 1970 (Order of the Presidium of the Supreme Soviet
of  the  Lithuanian SSR "On Abolishing the Local   Administrative
Unit  of  Šventoji  of the Kretinga District" of 30  June   1970;
Document  of the Palanga City Municipality No. (19.4)-D3-472  "On
Submission of Information for the Constitutional Justice Case" of
22 February 2010).
     6.  According to the data of the State Forests Cadastre   of
the  Republic of Lithuania, stands grow in basic forest lot   28,
Section 105 of the Palanga City Municipality forests, the age  of
the stands is 55 years, the height of the trees is 19 metres, the
area  of  the forest is 0.6 hectares, the type of the stands   is
that of forest parks, and their density is medium (Note of  State
Forest  Survey  Service No. TA 0707-0004 "Regarding  the   Forest
Evaluation Indexes of the Forests Registered in the State Forests
Cadastre of the Republic of Lithuania" of 30 July 2007).
     Thus,  as  it is clear from fragment No. P0707-0013 of   the
Scheme  of Forest Areas of State Importance of the State  Forests
Cadastre  of the Republic of Lithuania of 30 July 2007  submitted
by  the  State  Forests  Survey  Service  and  from  the   forest
evaluation  indexes registered in the State Forests Cadastre   of
the  Republic of Lithuania, basic forest lot 28, Section 105   of
the  Palanga City Municipality forests was and is in   conformity
with the notion of forest entrenched in Paragraph 3 of Article  3
of  the  Forestry  Law  (wording of 22  November  1994)  and   in
Paragraph 1 of Article 2 of the Forestry Law (wording of 10 April
2001).
     7. Paragraph 1 of Article 2 of the Forestry Law (wording  of
10 April 2001) prescribed that "'town forests' mean forests which
are in the territory of towns".
     It  has been mentioned that the territory in which there  is
basic forest lot 28, Section 105 of the Palanga City Municipality
forests was attributed to the territory of the town of Palanga as
far back as in 1970.
     Thus,  it is clear from the material of this  constitutional
justice  case that there is town forest in basic forest lot   28,
Section 105 of the Palanga City Municipality forests.
     8.  Item 3 of Paragraph 6 of Article 5 of the Forestry  Law,
which  was  adopted by the Seimas on 22 November 1994 and   which
came  into  force on 1 January 1995 prescribed that "Forests   of
State importance shall belong by the exclusive right of ownership
to  the  Republic of Lithuania if the forests are  assigned   to:
<...> 3) <...> town forests <...>".
     Item  2  of  Paragraph 4 of Article 4 of the  Forestry   Law
(wording of 10 April 2001) prescribes that "<…> Forests of  state
importance shall be: <…> 2) town forests; <...>". This  provision
of the Forestry Law has not been amended or supplemented.
     Thus, the Forestry Law established and establishes that town
forests are forests of state importance.
     Thus, the forest which grows on basic forest lot 28, Section
105 of the Palanga City Municipality forests is a forest of state
importance.
     9.  It has been mentioned that the petitioner disputes   the
compliance (to the corresponding extent) of Government Resolution
No. 1154 "On Confirmation of Forest Areas of State Importance" of
23  October  1997 (wording of 3 November 2004) with  inter   alia
Paragraph  2 (wording of 3 August 2001) of Article 4 and Item   1
(wording of 23 March 2004) of Paragraph 2 of Article 5 of the Law
on  Restoration  of the Rights of Ownership of Citizens  to   the
Existing Real Property.
     10.  Paragraph 2 (wording of 3 August 2001) of Article 4  of
the Law on Restoration of the Rights of Ownership of Citizens  to
the Existing Real Property prescribes:
     "Land  shall be given back in kind to a citizen or  citizens
in the former locality by the right of common ownership, with the
exception  of  the  land which under Article 12 of this  Law   is
attributed  to the land subject to buying out by the State,   and
the land that citizens are not willing to get back in its  former
locality  in the case specified in Paragraph 10 of this  Article.
By  agreement of co-owners of land, land may be returned in  kind
by  separate plots of land. Projects of parcelling out plots   of
land acquired by the right of common ownership, shall be prepared
with  the  funds  of the owners of such land  according  to   the
uniform-amount   rates  of  executing  works,  as  set  by    the
Government."
     11.  Item  1 (wording of 23 March 2004) of Paragraph  2   of
Article 5 of the Law on Restoration of the Rights of Ownership of
Citizens to the Existing Real Property prescribes:
     "The  rights  of ownership to the land, which was   situated
prior to 1 June 1995 within the territory that was attributed  in
the  prescribed manner to towns, shall be restored according   to
the following procedure:
     1)  by  giving  back in kind to a citizen or  citizens   the
vacant (non-built-up) land in the former locality by the right of
common  ownership,  as  well  as to a  citizen,  possessing   the
buildings  by the ownership right, a plot of land in use by  this
citizen  the  boundaries  of which are  defined  in   territorial
planning  documents,  with the exception of the land   attributed
under Article 12 of this Law to the land subject to buying out by
the  State,  as well as the land a citizen does not wish  to   be
given  back in the former locality. The area of the vacant  (non-
built-up) land given back in kind shall be reduced to the size of
a  plot of land of one hectare, provided that plots of land   are
designed  on it, which are being transferred without payment   to
citizens for individual construction under Item 3 of Paragraph  2
of  this  Article  and  they may not be  designed  within   other
territories  of a town due to the lack of vacant   (non-built-up)
land  in  this town. The formation of plots of land being   given
back in kind in vacant (non-built-up) areas of land in the former
locality and the preparation of their plans shall, in  accordance
with  the procedure and conditions set out by the Government,  be
organised and the plans shall be approved by the director of  the
municipal administration."
     12.  Thus, under Paragraph 2 (wording of 3 August 2001)   of
Article 4 and Item 1 (wording of 23 March 2004) of Paragraph 2 of
Article 5 of the Law on Restoration of the Rights of Ownership of
Citizens   to   the   Existing   Real   Property,   land     and,
correspondingly, town land are returned to citizens in kind.
     Thus,  the  provisions of this law regulated the   relations
linked  with returning of land and, correspondingly, town   land,
which  is not forest, to citizens in kind with the exception   of
the  cases when such land is not returned but bought out by   the
state.
     13. Paragraph 2 (wording of 3 August 2001) of Article 4  and
Item 1 (wording of 23 March 2004) of Paragraph 2 of Article 5  of
the Law on Restoration of the Rights of Ownership of Citizens  to
the Existing Real Property make reference to Article 12  (wording
of 14 October 2003) of the same law, which establishes the  cases
when  land  and, correspondingly, town land is not  returned   to
citizens  in  kind, but compensated in other ways  according   to
Article 16 (wording of 29 October 2002) of this law.
     14.  As mentioned, there is town forest in basic forest  lot
28,  Section  105 of the Palanga City Municipality  forests.   It
needs  to  be  emphasised that the cases when  forests  are   not
returned  to  citizens in kind and citizens are compensated   for
such forests according to Article 16 (wording of 29 October 2002)
of the Law on Restoration of the Rights of Ownership of  Citizens
to the Existing Real Property are established not in Article  12,
but Article 13 thereof.
     Article  13  (wording  of 29 October 2002) of  the  Law   on
Restoration  of  the  Rights  of Ownership of  Citizens  to   the
Existing Real Property prescribes:
     "Article  13.  Forests and Water Bodies Bought out  by   the
State
     Forests  and water bodies shall be bought out by the   State
from the persons specified in Article 2 of this Law and the State
shall  compensate for them in pursuance with Article 16 of   this
Law, provided that these forests and water bodies are:
     1)  assigned  to forests of State importance, inland   water
bodies of State importance. The areas of these forests and  water
bodies shall be approved by the Government;
     2)  assigned to state reserves, reserves of state parks  and
forest reserves plots, national park of the Curonian Peninsula;
     3)  assigned to town forests, zone 1 of sanitary  protection
of  towns, town parks. Lists of the above-mentioned forests  with
forest  areas  indicated  therein  shall  be  approved  by    the
Government;
     4)  assigned  to  forest genetic  preserves,  state   forest
nurseries, state seed-plots and forest seed orchards;
     5)  assigned to objects of scientific research and  training
of  forestry, as well as of selective seed farming. The areas  of
these forests shall be approved by the Government;
     6) forests of state significance which are situated within a
seven-kilometre strip from the Baltic Sea to the Curonian bay;
     7) acquired into private ownership in accordance with laws."
     Thus, under Article 13 (wording of 29 October 2002) of  this
law, the rights of ownership to forests by returning them in kind
are  not  restored if such forests: are assigned to  forests   of
state importance (Item 1); are assigned to town forests (Item 3).
Thus, town forests are bought out by the state; for such  forests
one is compensated by the state according to Article 16  (wording
of  29 October 2002) of the Law on Restoration of the Rights   of
Ownership of Citizens to the Existing Real Property.
     15.  It needs to be noted that the legal regulation  whereby
town forests are not returned to citizens in kind but are  bought
out  by the state by providing compensation for such forests   in
other  ways  used to be established in Item 3 (wording of 7   May
1992)  of  Article 13 of the Republic of Lithuania Law  "On   the
Procedure  and  Conditions of the Restoration of the  Rights   of
Ownership of Citizens to the Existing Real Property", as well  as
in  Item 4 (wording of 1 July 1997) of Article 13 of the Law   on
Restoration  of  the  Rights  of Ownership of  Citizens  to   the
Existing Real Property.
     It also needs to be noted that, under Article 13 (wording of
18 June 1991) of the Law "On the Procedure and Conditions of  the
Restoration  of  the  Rights  of Ownership of  Citizens  to   the
Existing Real Property", "forests required by the State shall  be
bought out (or compensated for) from persons specified in Article
2  of  this Law in the manner established in Article 16 of   this
Law, provided that these forests are assigned to Group 1  forests
under  the  laws  of  the Republic of Lithuania".  It  has   been
mentioned  that Article 28 (wording of 21 June 1979) of the  Code
of  Forests of the Republic of Lithuania prescribed that "to  the
first  group shall belong the forests which perform first of  all
these  functions:  <...>  sanitary-hygienic and  wellness   (town
forests, <...>)".
     Thus,  the  principled provision that town forests are   not
returned to citizens in kind but are bought out by the state  was
entrenched  as  far back as from 18 June 1991, when  the   Seimas
adopted  the  Law  "On  the  Procedure  and  Conditions  of   the
Restoration  of  the  Rights  of Ownership of  Citizens  to   the
Existing Real Property".
     16.  It  has  been mentioned that, in the  opinion  of   the
petitioner,  Government Resolution No. 1154 "On Confirmation   of
Forest Areas of State Importance" of 23 October 1997 (wording  of
3 November 2004) to the corresponding extent is in conflict inter
alia with Paragraph 2 (wording of 3 August 2001) of Article 4 and
Item 1 (wording of 23 March 2004) of Paragraph 2 of Article 5  of
the Law on Restoration of the Rights of Ownership of Citizens  to
the  Existing  Real  Property due to the fact that  after   basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests had been assigned to forest areas of state importance  by
the  disputed  Government resolution without taking  a   decision
regarding  the request submitted by the claimant to restore   the
rights  of  ownership  to the said land in kind,  the   claimant,
according  to the petitioner, was deprived of an opportunity   to
implement this right.
     Therefore, in the constitutional justice case at issue it is
also  necessary to elucidate whether the Government enjoyed   the
powers to assign basic forest lot 28, Section 105 of the  Palanga
City  Municipality  forests to forest areas of state   importance
without taking a decision regarding the request submitted by  the
claimant  to restore the rights of ownership to the said land  in
kind,  i.e.  whether  the Government was allowed  to  adopt   the
disputed resolution to the corresponding extent.
     The principle of a state under the rule of law entrenched in
the Constitution implies the hierarchy of legal acts. In its acts
the   Constitutional  Court  held  more  than  once  that     the
constitutional principle does not permit that sub-statutory legal
acts (thus, also Government resolutions) establish any such legal
regulation which would compete with that established in the  law,
and  that  it  demands that sub-statutory legal acts be  not   in
conflict  with  laws, constitutional laws and the   Constitution,
that  sub-statutory  legal acts must be adopted on the basis   of
laws, that a sub-statutory legal act is an act of application  of
norms of the law, irrespective of whether the act is of  one-time
(ad  hoc) application, or of permanent validity (inter alia   the
Constitutional Court ruling of 6 September 2007).
     16.1.  At  the time when the Government adopted   Government
resolution  No.  1154 of 23 October 1997 (wording of 3   November
2004) which is being disputed to the corresponding extent,  Items
1 and 3 (wording of 11 December 2001) of Article 13 of the Law on
Restoration  of  the  Rights  of Ownership of  Citizens  to   the
Existing Real Property were in force, wherein it was  prescribed:
"Forests  and water bodies shall be bought out by the State  from
the  persons  specified in Article 2 of this Law and  the   State
shall  compensate for them in pursuance with Article 16 of   this
Law,  provided  that  these  forests and water  bodies  are:   1)
assigned to forests of state importance, <…>. The areas of  these
forests <…> shall be approved by the Government; <…> 3)  assigned
to  town  forests, zone 1 of sanitary protection of towns,   town
parks.  Lists  of the above-mentioned forests with forest   areas
indicated therein shall be approved by the Government; <...>."
     16.2.  Thus,  under the provision of Item 1 (wording of   11
December  2001)  of Article 13 of the Law on Restoration of   the
Rights  of Ownership of Citizens to the Existing Real   Property,
the Government had the powers to approve the areas of forests  of
state importance, whereas under the provision of Item 3  (wording
of 11 December 2001) of the same article, the Government had  the
powers to approve lists of forests assigned to town forests  with
forest areas indicated therein.
     17. It has been mentioned that there is town forest in basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests.
     In  this  context  it  needs  to  be  noted  that  in    the
Constitutional  Court  ruling  of 6 September 2007  wherein   one
investigated  to  the  corresponding extent  the  compliance   of
Government  Resolution No. 1154 "On Confirmation of Forest  Areas
of State Importance" of 23 October 1997 (wording of 14 July 2005)
with  the Constitution and the provisions of articles of the  Law
on  Restoration  of the Rights of Ownership of Citizens  to   the
Existing  Real Property it was held that regardless of the   fact
whether  the  Government  had formally attributed  certain   town
forests  to forests of state importance, under the Forestry  Law,
town forests were forests of state importance.
     In  itself, the mere fact that basic forest lot 28,  Section
105  of the Palanga City Municipality forests for some time   was
not assigned to forest areas of state importance by a  resolution
of  the Government and that this was done only after   Government
Resolution No. 1154 of 23 October 1997 had been set forth in  the
wording  of 3 November 2004 without taking a decision   regarding
the  request submitted by the claimant to restore the rights   of
ownership to this portion of land, does not constitute grounds to
assert  that the Government was acting ultra vires, i.e. that  it
exceeded its powers.
     18. It has been mentioned that there is town forest in basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests.  Thus,  this  lot,  as town forest,  under  Item  2   of
Paragraph 4 of Article 4 of the Forestry Law (wording of 10 April
2001),  which  provides that town forests are forests  of   state
importance,  and, under Item 3 (wording of 11 December 2001)   of
Article  13 of the Law on Restoration of the Rights of  Ownership
of  Citizens  to the Existing Real Property, such a lot  is   not
returned  to  citizens  in kind, but must be bought out  by   the
state.
     In  this  constitutional justice case it has  already   been
mentioned that the principled provision that town forests are not
returned to citizens in kind but are bought out by the state  was
entrenched  as  far back as from 18 June 1991, when  the   Seimas
adopted  the  Law  "On  the  Procedure  and  Conditions  of   the
Restoration  of  the  Rights  of Ownership of  Citizens  to   the
Existing Real Property".
     19.  It has also been mentioned that for the forests  bought
out  by  the state citizens are compensated by the state in   the
ways  established in Article 16 (wording of 29 October 2002)   of
the Law on Restoration of the Rights of Ownership of Citizens  to
the Existing Real Property.
     20. It needs to be noted that, in its ruling of 20 May 2008,
the  Constitutional  Court also held that the  legal   regulation
which  establishes the alternatives of restoration of the  rights
of  ownership  in kind is not in conflict with the  purposes   of
restitution  and with the constitutional principle of  protection
of the rights of ownership.
     21.  It  has been mentioned that Paragraph 2 (wording of   3
August  2001) of Article 4 and Item 1 (wording of 23 March  2004)
of  Paragraph  2 of Article 5 of the Law on Restoration  of   the
Rights  of  Ownership of Citizens to the Existing Real   Property
(with whose regard the petitioner disputes, to the  corresponding
extent, Government Resolution No. 1154 "On Confirmation of Forest
Areas  of  State  Importance" of 23 October 1997 (wording  of   3
November  2004)) regulate the relations linked with returning  of
land  and,  correspondingly, town land, which is not forest,   to
citizens in kind.
     It  has  also  been  mentioned that the lot  to  which   the
restoration of the rights of ownership in kind is claimed is town
forest.
     22.  Thus,  there are no legal grounds to assert  that   the
legal  regulation established in Government Resolution No.   1154
"On  Confirmation  of  Forest Areas of State Importance"  of   23
October 1997 (wording of 3 November 2004) to the extent that  the
forest  areas  of  state importance of  3.33  thousand   hectares
confirmed (subsequent to the corresponding scheme drafted by  the
Ministry of Environment) to the town of Palanga also  encompasses
basic forest lot 28, Section 105 of the Palanga City Municipality
forests  is  not  in conformity with Paragraph 2 (wording  of   3
August  2001) of Article 4 and Item 1 (wording of 23 March  2004)
of  Paragraph  2 of Article 5 of the Law on Restoration  of   the
Rights of Ownership of Citizens to the Existing Real Property.
     23.  Taking  account of the arguments set forth, one is   to
draw  a  conclusion  that  Government Resolution  No.  1154   "On
Confirmation  of Forest Areas of State Importance" of 23  October
1997  (wording of 3 November 2004) to the extent that the  forest
areas  of  state importance of 3.33 thousand hectares   confirmed
(subsequent  to the corresponding scheme drafted by the  Ministry
of  Environment)  to the town of Palanga also encompasses   basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests is not in conflict with Paragraph 2 (wording of 3  August
2001)  of  Article  4 and Item 1 (wording of 23 March  2004)   of
Paragraph 2 of Article 5 of the Law on Restoration of the  Rights
of Ownership of Citizens to the Existing Real Property.

                               III
     On  the  compliance of Government Resolution No.  1154   "On
Confirmation  of Forest Areas of State Importance" of 23  October
1997  (wording of 3 November 2004) to the extent that the  forest
areas  of  state importance of 3.33 thousand hectares   confirmed
(subsequent  to the corresponding scheme drafted by the  Ministry
of  Environment)  to the town of Palanga also encompasses   basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests with Article 23 of the Constitution.
     1.  It  has  been  mentioned that, in the  opinion  of   the
petitioner,  Government Resolution No. 1154 "On Confirmation   of
Forest Areas of State Importance" of 23 October 1997 (wording  of
3 November 2004) to the corresponding extent is in conflict inter
alia  with  Article 23 of the Constitution due to the fact   that
after  basic  forest  lot 28, Section 105 of  the  Palanga   City
Municipality  forests had been assigned to forest areas of  state
importance by the disputed Government resolution without taking a
decision  regarding  the  request submitted by the  claimant   to
restore  the rights of ownership to the said land, the   claimant
was deprived of an opportunity to implement this right.
     2.  Article  23 of the Constitution provides that   property
shall be inviolable (Paragraph 1); the rights of ownership  shall
be  protected by laws (Paragraph 2); property may be taken   over
only  for  the  needs  of society  according  to  the   procedure
established by law and shall be justly compensated for (Paragraph
3).
     The  provisions of Article 23 of the Constitution are to  be
construed also while taking account of the provision of Paragraph
1 (wording of 23 January 2003) of Article 47 of the  Constitution
whereby the underground, internal waters, forests, parks,  roads,
historical,   archaeological  and  cultural  objects  of    state
importance  shall belong by the right of exclusive ownership   to
the Republic of Lithuania. This provision means that the objects,
inter alia forests of state importance, specified in Paragraph  1
(wording  of 23 January 2003) of Article 47 of the  Constitution,
may  belong  only to the state by right of ownership,  save   the
exceptions stemming from the Constitution itself  (Constitutional
Court  ruling of 6 September 2007); the state (its  institutions,
officials) cannot adopt any decisions on the grounds of which the
said objects would move from the state ownership to the ownership
of  other  subjects,  save  the  situations  permitted  by    the
Constitution itself (Constitutional Court rulings of 8 July 2005,
14 March 2006, 6 September 2007).
     3.  It needs to be noted that the State of Lithuania,  while
striving to restore justice in part at least, i.e. to restore the
violated  rights of ownership, chose restricted restitution,  but
not  restitutio in integrum; the restoration of justice when  the
owners  are compensated for the existing real property which  has
not been returned in kind has two sides: it is justice in  regard
of the owner as well as the entire society; the unlawful  actions
of  the occupation government inflicted enormous damage not  only
on  the owners whose rights of ownership were denied but also  on
the  whole society and the entire state; while restoring  justice
in  regard of the owners, one cannot ignore justice in regard  of
the entire society whose members are also the owners as well;  in
the  process  of the restoration of the rights of ownership   one
must  strive for a balance between the persons whose rights   are
being   restored  and  the  interests  of  the  entire    society
(Constitutional Court rulings of 4 March 2003 and 5 July 2007).
     4. The Constitutional Court has held more than once that  it
is permitted that laws establish that objects of property  (which
are  bought  out by the state) are not returned in kind  to   the
persons  who have the right to the restoration of the rights   of
ownership  (Constitutional  Court  rulings  of 5  July  2007,   6
September  2007,  20  May 2008, decision of 4  July  2008);   the
provision  of  the restitution laws that if it is impossible   to
retrieve the property in kind, compensation must given, is not in
conflict with the principles of inviolability of property and  of
the protection of ownership rights, since fair compensation  also
ensures   restoration   of   ownership   rights   (inter     alia
Constitutional  Court rulings of 5 July 2007, 6 September   2007,
decision of 4 July 2008).
     As   mentioned,  in  its  ruling  of  20  May  2008,     the
Constitutional  Court  also  held  that  the  legal    regulation
establishing  the  alternatives of restoration of the rights   of
ownership  in  kind  is  not in conflict with  the  purposes   of
restitution  and with the constitutional principle of  protection
of the rights of ownership.
     While  interpreting  the  content  of  Article  23  of   the
Constitution  in the context of the restoration of the rights  of
ownership to the existing real property, the Constitutional Court
has  held in its rulings the following more than once: until  his
property  is restored or he is paid an appropriate   compensation
for  it, the subjective rights of the former owner to a  specific
property are not restored yet (Constitutional Court ruling of  20
May  2008); the legal meaning of the decision of the  institution
authorised by the state to restore property in kind or compensate
for  it  is that only from this proper moment the  former   owner
acquires the rights of ownership to such property (Constitutional
Court rulings of 27 May 1994, 4 March 2003 and 20 May 2008).
     5.  It  has been held in this ruling of the   Constitutional
Court  that, in itself, the mere fact that basic forest lot   28,
Section  105  of the Palanga City Municipality forests for   some
time  was not assigned to forest areas of state importance by   a
resolution  of the Government and that this was done only   after
Government  Resolution No. 1154 of 23 October 1997 had been   set
forth in the wording of 3 November 2004 without taking a decision
regarding  the request submitted by the claimant to restore   the
rights of ownership to this portion of land, does not  constitute
grounds to assert that the Government was acting ultra vires,  i.
e. that it exceeded its powers.
     It also needs to be mentioned that the Constitutional  Court
has held that, regardless of the fact whether the Government  has
formally  attributed  certain town forests to forests  of   state
importance,  under the Forestry Law, town forests are forests  of
state  importance  (Constitutional Court ruling of  6   September
2007).
     6. It has been mentioned that, under the Constitution,  fair
compensation also ensures restoration of the rights of ownership.
     7.  Thus,  there  are no grounds to assert that  the   legal
regulation  established  in Government Resolution No.  1154   "On
Confirmation  of Forest Areas of State Importance" of 23  October
1997  (wording of 3 November 2004) to the extent that the  forest
areas  of  state importance of 3.33 thousand hectares   confirmed
(subsequent  to the corresponding scheme drafted by the  Ministry
of  Environment)  to the town of Palanga also encompasses   basic
forest  lot  28,  Section 105 of the Palanga  City   Municipality
forests deviated from the imperatives of the rights of  ownership
arising from Article 23 of the Constitution.
     8. Taking account of the arguments set forth, one is to draw
a  conclusion  that  that the legal  regulation  established   in
Government  Resolution No. 1154 "On Confirmation of Forest  Areas
of  State Importance" of 23 October 1997 (wording of 3   November
2004) to the extent that the forest areas of state importance  of
3.33 thousand hectares confirmed (subsequent to the corresponding
scheme  drafted  by the Ministry of Environment) to the town   of
Palanga also encompasses basic forest lot 28, Section 105 of  the
Palanga City Municipality forests is not in conflict with Article
23 of the Constitution.

     Conforming  to Articles 102 and 105 of the Constitution  of
the  Republic of Lithuania and Articles 1, 53, 54, 55 and 56  of
the  Law  on  the  Constitutional  Court  of  the  Republic   of
Lithuania, the Constitutional Court of the Republic of Lithuania
has passed the following
                             ruling:
     1.  To recognise that that Resolution of the Government  of
the  Republic of Lithuania No. 1154 "On Confirmation of   Forest
Areas  of  State Importance" of 23 October 1997 (wording  of   3
November  2004)  (Official Gazette Valstybės žinios, 2004,   No.
162-5910)  to  the  extent  that  the  forest  areas  of   state
importance  of 3.33 thousand hectares confirmed (subsequent   to
the corresponding scheme drafted by the Ministry of Environment)
to  the  town of Palanga also encompasses basic forest lot   28,
Section  105 of the Palanga City Municipality forests is not  in
conflict with Paragraph 2 (wording of 3 August 2001) of  Article
4  and  Item  1 (wording of 23 March 2004) of  Paragraph  2   of
Article 5 of the Republic of Lithuania Law on Restoration of the
Rights of Ownership of Citizens to the Existing Real Property.
     2.  To recognise that the legal regulation established   in
Resolution  of the Government of the Republic of Lithuania   No.
1154 "On Confirmation of Forest Areas of State Importance" of 23
October  1997  (wording of 3 November 2004)  (Official   Gazette
Valstybės  žinios,  2004, No. 162-5910) to the extent that   the
forest  areas  of  state importance of 3.33  thousand   hectares
confirmed (subsequent to the corresponding scheme drafted by the
Ministry of Environment) to the town of Palanga also encompasses
basic   forest  lot  28,  Section  105  of  the  Palanga    City
Municipality  forests is not in conflict with Article 23 of  the
Constitution of the Republic of Lithuania.

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

 Justices of the Constitutional Court: Armanas Abramavičius
                                       Toma Birmontienė
                                       Kęstutis Lapinskas
                                       Zenonas Namavičius
                                       Ramutė Ruškytė
                                       Egidijus Šileikis
                                       Algirdas Taminskas
                                       Romualdas Kęstutis Urbaitis