the state must pay for the delay in reimbursing the cost of tombstones for Heroes of Labor – Kommersant

the state must pay for the delay in reimbursing the cost of tombstones for Heroes of Labor - Kommersant

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The Supreme Court of the Russian Federation (SC) recognized that the state is not exempt from paying interest for late payment of costs for tombstones to Heroes of Labor. This position was expressed by the Supreme Court in the framework of a dispute with individual entrepreneur Nikolai Olenin, who manufactured and installed eight tombstones under agreements with relatives of deceased Heroes of Labor. These relatives ceded to the individual entrepreneur the right to demand compensation for these expenses from the state. The fact is that according to the law of 1997 “On the provision of social guarantees to Heroes of Socialist Labor, Heroes of Labor of the Russian Federation and full holders of the Order of Labor Glory,” such expenses must be reimbursed from the federal budget. However, as practice shows, they often have to be collected through the courts.

Having not received payment for his work, the entrepreneur filed a lawsuit to recover 4 million rubles. losses and another 214 thousand rubles. interest accrued for delayed payments. The arbitration courts recognized his right to reimbursement of expenses, but refused to collect a penalty for delay, considering that it was not applicable to such legal relations with the state. However, according to the complaint of Nikolai Olenin, the case handed over to the Economic College of the Supreme Court, which recognized his right to interest.

The Supreme Court explained that according to the rules of the Civil Code of the Russian Federation (Civil Code), both for late completion and for late payment for contract work, interest is charged on the amount of the debt. They “are subject to payment regardless of the basis for the occurrence of the obligation,” the economic board indicated. At the same time, financing the cost of work from the federal budget “cannot change the nature of the relationship regarding payment for work performed and limit the right to apply the rules of Article 395 of the Civil Code in the event of late payment,” the Supreme Court emphasized. The dispute is sent for a new consideration to verify the calculation of the amount of interest.

Anna Zanina

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