Uzhgorod will be refunded nearly 700,000 UAH for outdoor lighting

The court ordered the contractor to return Uzhgorod city council almost 700,000 UAH

This was announced by the press service of the City Hall.

Recently, Lviv Economic Court of Appeal put an end in the long-lasting case of the contract for reconstruction of outdoor lighting network in Uzhgorod. The total cost of the work amounted to more than UAH 2.3 million.

Under the agreement, before the work, the Department of Municipal Economy transferred the contractor an advance in amount of 30% of the contractual cost of works amounting to 699,087.64 UAH.

The monet was transferred to the contractor on August 28, 2014, but as of March 16, 2015, the work has not started, the advance has not been returned. Therefore, the prosecutor of Uzhgorod, to protect the interests of the state represented by the Department of Municipal Economy of Uzhgorod City Council, filed a lawsuit to recover from the contractor for the Department of Municipal Economy of Uzhgorod City Council 669,087.64 UAH of the advance payment due to nonperformance of the contract.

The contractor stated that he was unable to perform work because the advance was transferred to the account in the bank, which was recognized as insolvent, and thus he was unable to dispose of them.

Due to the ambiguity of the legislation and the case law that regulates the relationship with insolvent banks, the case was long considered by the Commercial Court of Transcarpathian region and Lviv Economic Court of Appeal.

Prosecutors of Transcarpathian region and the legal service of the Department of Municipal Economy managed to convince the court that took into account the arguments of the Department of Municipal Economy of Uzhgorod City Council and the prosecutors both in the initial trial and on appeal.