Dentons Baku office – a TEAS member company – has issued a Client Alert on the latest Decision of the Constitutional Court of Azerbaijan summarising issues related to mortgaging marital property, the application of statute of limitations and the scope of judicial review by the Supreme Court of Azerbaijan.

On 15 July 2015 the Constitutional Court of Azerbaijan issued a ruling in the case of Mammadova et al. vs. Bank Technique, a case where the claimants requested the court to partially invalidate a mortgage agreement over certain marital property (a house) on the grounds that the specific consent of one of the spouses was not procured, even though the relevant spouse had granted a general power of attorney to her husband, which at the time of entering into the mortgage agreement was valid. This decision was proceeded by a series of decisions by lower courts, including those of the Guba First Instance Court, which rejected the claimant’s claims and refused to invalidate the mortgage agreement; the Sumgayit Appellate Court, which reversed and remanded the decision of the Guba First Instance Court; and, finally, the Supreme Court, which reversed and remanded the decision of the Sumgayit Appellate Court. However, the Constitutional Court not only reversed the decision of the Supreme Court and remanded the case, it also affirmed several fundamental principles related to marital property under Azerbaijani law.

Namely, the Court was asked to clarify whether the property rights of Ms Mammadova, protected under Article 29 of the Constitution of Azerbaijan, were violated by the decision of the Supreme Court, which seemed to agree with the respondent, Bank Technique, in that the mortgage agreement was valid in relation to the mortgaged marital property despite the absence of specific consent by Ms Mammadova to mortgage such property, as required by law in relation to property held in common. (Paragraph IV of Article 29 of the Constitution of Azerbaijan states that no one can be deprived of his/her property without a decision of the court.)

For the full text of the ruling, go to http://bit.ly/dentonsmarital

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