CEDH · CASELAW;JUDGMENTS;CHAMBER;ENG — 21 septembre 2021

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margin-bottom:0pt; page-break-inside:avoid; page-break-after:avoid } .sF920FE69 { font-family:Arial; color:#f8f8f8 } .s69DCC830 { margin-top:36pt; margin-bottom:0pt } .s53CE0290 { width:176.96pt; display:inline-block } .s7602FED2 { width:18.21pt; display:inline-block } .sC1AC44A4 { width:228.11pt; display:inline-block } .s5E1364CA { margin-top:0pt; margin-bottom:12pt; text-align:center; page-break-inside:avoid; page-break-after:avoid; font-size:14pt } .sD00444C6 { margin-top:0pt; margin-bottom:14pt } .s75A32C27 { border-collapse:collapse } .s46E96D70 { height:48.75pt } .s3695F815 { border:0.75pt solid #949494; padding:1.02pt 5.03pt; vertical-align:top; background-color:#dfdfdf } .s598389F9 { margin-top:0pt; margin-bottom:0pt; text-align:center; font-size:12pt } .s2EF62ED2 { margin-top:0pt; margin-bottom:0pt; font-size:12pt } .sE8934522 { border:0.75pt solid #949494; padding:1.02pt 5.03pt; vertical-align:top } .sE2D594D1 { margin-left:33.01pt; padding-left:2.99pt; font-family:Arial; font-size:12pt } .s2EDF6575 { height:39.85pt }     FIFTH SECTION CASE OF ALIYEVA AND OTHERS v. AZERBAIJAN (Applications nos. 66249/16 and 6 others – see appended list)       JUDGMENT Art 1 P1 • Peaceful enjoyment of possessions • Supreme Court’s failure to follow its own clear line of case-law resulting in applicants’ inability to obtain statutory additional compensation for expropriated property   STRASBOURG 21 September 2021   FINAL   21/12/2021     This judgment has become final under Article 44 § 2 of the Convention. It may be subject to editorial revision.   In the case of Aliyeva and Others v. Azerbaijan, The European Court of Human Rights (Fifth Section), sitting as a Chamber composed of:   Síofra O’Leary, President,   Mārtiņš Mits,   Stéphanie Mourou-Vikström,   Lətif Hüseynov,   Jovan Ilievski,   Lado Chanturia,   Arnfinn Bårdsen, judges, and Victor Soloveytchik, Section Registrar, Having regard to: seven applications against the Republic of Azerbaijan lodged with the Court under Article 34 of the Convention for the Protection of Human Rights and Fundamental Freedoms (“the Convention”) by seven Azerbaijani nationals on various dates (see Appendix); the decision to give notice to the Azerbaijani Government (“the Government”) of the complaints under Article 14 of the Convention and Article 1 of Protocol No. 1 to the Convention; the parties’ observations; Having deliberated in private on 31 August 2021, Delivers the following judgment, which was adopted on that date: INTRODUCTION 1.     The applications concern the applicants’ complaint about the non ‑ payment of statutory additional compensation for their expropriated properties and raises issues under Article 14 of the Convention and Article 1 of Protocol No. 1 to the Convention. THE FACTS 2.     The applicants’ details are listed in the Appendix. They were all represented by Mr S. Bagirov, a lawyer based in Azerbaijan. 3.     The Government were represented by their Agent, Mr Ç. Əsgərov. 4.     The facts of the case, as submitted by the parties, may be summarised as follows. 5.     The applicants were owners of flats situated at Agil Guliyev Street, Elchin and Vusal Hajibabayevler Street and Fathi Khoshginabi Street in the Sabail District of Baku. Orders issued in respect of the area where the applicants’ flats were located 6.     On 22 February 2011 the Head of the Baku City Executive Authority (“the BCEA”) issued order no. 92 on “vacating the area around several streets and the buildings at 5 Agil Guliyev Street in the Sabail District and demolishing the residential and non-residential buildings in these areas”. The parties did not provide the Court with a copy of this order. It appears from the case file that, pursuant to the order, Z.I., the Deputy Head of the BCEA’s Administration, was authorised to sign sale and purchase contracts with the owners of the flats subject to demolition, and that the owners were to be paid 1,500 Azerbaijani manats (AZN) per sq. m. 7.     On 31 May 2011 the Head of the BCEA issued order no. 243 “concerning the relocation of residential and non-residential premises in the Sabail District, at 7 and 9 Agil Guliyev Street, 2 Fathi Khoshginabi Street, 9   Aydin Nasirov Street, 3 and 10/12 Elchin and Vusal Hajibabayevler Street, in connection with expansion of the highway” (“the BCEA’s order of 31 May 2011”). The order stated that the relocation of residential and non-residential properties was necessary for expanding the highway which connected the central part of the capital with the Bayil settlement as part of the historical Silk Way, establishing new road infrastructure and installing modern engineering communication devices. This had to be ensured by payment of compensation in the amount of AZN 1,500 per sq. m on the basis of sale and purchase contracts certified by a notary, as agreed with the Ministry of Finance and the State Committee on Property Issues. Z.I., the Deputy Head of the BCEA’s Administration was authorised to sign the sale and purchase contracts with the owners of the properties. Sale and purchase of the applicants’ flats 8.     On various dates between 21 July 2011 and 11 February 2012 the applicants concluded sale and purchase contracts with Z.I. on the basis of the orders of 22 February 2011 (the applicant in application no. 77691/16), and 31 May 2011 (the applicants in the other applications). 9.     In accordance with the contracts, the applicants sold their flats for various amounts, calculated on the basis of AZN 1,500 per sq. m. 10.     The applicants undertook to transfer their ownership rights to the flats and all the relevant documents to the BCEA at the time the contracts were approved by the notary. Court proceedings The applicants’ claims and the position of the defendants 11.     It appears that, before initiating the court proceedings described below, on various dates in 2015 the applicants wrote to the BCEA, arguing that their flats had been expropriated for State needs and asking for the payment of “additional compensation” as provided for by law, consisting of the following: (a) compensation of 20% of the market prices of their properties, to be paid in addition to the purchase price (“the additional 20% compensation”), in accordance with Article 2.3 of Presidential Decree no. 689 of 26 December 2007 (“the 2007 Presidential Decree”, see paragraph   70 below), and (b) further additional compensation “for hardship” of 10% of the “total compensation” paid to them (“compensation for hardship”), in accordance with Article 66 of the Law on the Expropriation of Land for State Needs (“the Law on Expropriation”, see paragraph 69 below). 12.     In its replies to the applicants dated 18 March 2015 and 11 August 2015, the BCEA refused to pay any additional compensation. 13.     On various dates in 2015 each of the applicants initiated separate sets of proceedings before Baku Administrative Economic Court No. 1 against the BCEA, and the Ministry of Finance as a third party. Relying on Articles 157.9, 246 and 247 of the Civil Code, the applicants argued before the first-instance court that their flats had been expropriated for State needs and that they were therefore entitled to the additional 20% compensation and compensation for hardship. It appears that, while the proceedings were pending before the first-instance court, in support of their latter claims, the applicants in applications nos. 66249/16, 66271/16, 75978/16 and 77691/16 provided a certificate ( arayış ) from the local housing authorities indicating that they had lived in the flats in question for ten or more years. It also appears that the applicants in applications nos. 1038/17 and 52821/17 provided similar references later in the proceedings (after the delivery of the first ‑ instance court judgments and while the proceedings were pending before the appellate court) indicating that they had lived in the flats in question for more than ten and eight years respectively. 14.     The BCEA submitted objections to the claims made by the applicants in applications nos. 66249/16, 77691/16 and 1038/17, arguing that the applicants’ relocation had been carried out pursuant to its orders, in accordance with the President’s instruction and the development programme for implementation of the General Plan of Baku City. It further submitted that the amount of compensation to be paid to the owners of the residential and non-residential properties in the demolition area had been fixed at AZN   1,500 per sq. m and argued that amounts corresponding to the additional 20% compensation and compensation for hardship had already been included in this overall amount. 15.     The Ministry of Finance filed objections in all cases, except with regard to the applicant in application no. 66271/16, asking the court to dismiss the applicants’ claims. It firstly argued that, in order for the applicants to be eligible for additional compensation, their properties needed to have been expropriated for State needs, which had not been the case. It also argued that, in accordance with domestic law, a decision by the Cabinet of Ministers was required for expropriation of privately owned property for State needs, and that there had been no such decision in their cases. 16.     The Ministry of Finance further argued that the alienation of the applicants’ properties had to be regarded as a private civil-law transaction because it had been carried out on the basis of sale and purchase contracts in accordance with the relevant provisions of the Civil Code and the price of the properties had been determined on the basis of “supply and demand”. It noted that the BCEA had acted on behalf of the State as a private entity in those transactions and, in support of this argument, relied on Article 43.3 of the Civil Code. It also submitted that the applicants had given their contractual consent to sell their properties for the price offered and that subsequently asking for additional compensation was contrary to the provisions of the civil law on contracts. First-instance judgments on the merits 17.     Baku Administrative Economic Court No. 1 delivered separate judgments in each case . Below are summaries of its judgments, grouped according to the similarity of the conclusions and reasoning. Applications nos. 66249/16 and 75978/16 18.     By separate judgments delivered on 13 July 2015 Baku Administrative Economic Court No. 1 allowed in full the applicants’ claims for additional compensation under both the 2007 Presidential Decree and the Law on Expropriation. It held that it was evident from the circumstances of the cases concerned that the applicants’ flats had been expropriated for State needs and that the applicants had resided in the flats in question for more than ten years. 19.     The court found that the arguments by the BCEA and the Ministry of Finance were unsubstantiated and noted that, had the flats not been expropriated for State needs as argued, the purchase price would have been negotiated by the applicants themselves and would not have been fixed by an agreement between the BCEA, the Ministry of Finance and the State Committee on Property Issues. Applications nos. 77309/16, 77691/16 and 52821/17 20.     On 23 September 2015 (application no. 77309/16), 11 November 2015 (application no. 77691/16) and 29 June 2015 (application no.   52821/17) the court allowed the applicants’ claims for the additional 20% compensation under the 2007 Presidential Decree, providing reasoning similar to that in the cases concerning the applicants in applications nos.   66249/16 and 75978/16 (see paragraphs 18-19 above). 21.     However, it dismissed their claims in respect of compensation for hardship under the Law on Expropriation, finding (i) that the claim was unsubstantiated (application no. 77309/16); (ii) that the claim had not been lodged within one calendar year of the adoption of the BCEA’s order of 22   February 2011, as required under Article 66.3 of the Law on Expropriation (application no. 77691/16); and (iii) that the applicant had not been in possession of the flat for the period required under Article 66.4 of the Law on Expropriation to qualify for such compensation (application no.   52821/17). Applications nos. 66271/16 and 1038/17 22.     On 19 November 2015 (application no. 66271/16) and 11 June 2015 (application no. 1038/17) the court dismissed the applicants’ claims in full. It noted that the applicants had voluntarily concluded the sale and purchase contracts and that the BCEA had acted in accordance with the provisions of civil law. It also noted that there had been no decision by the Cabinet of Ministers on expropriation of the applicant’s flats and that there had therefore been no expropriation or purchase for State needs. Appeals 23.     In the cases concerning the applicants in applications nos. 66249/16, 75978/16, 77309/16, 77691/16 and 52821/17, the BCEA and the Ministry of Finance lodged appeals, essentially reiterating their submissions made to the first-instance court (see paragraphs 14-16 above). 24.     The applicants in applications nos. 77309/16, 77691/16 and   52821/17 also lodged appeals and asked the Baku Court of Appeal to allow their claims in the part concerning compensation for hardship under the Law on Expropriation. The applicants in applications nos. 66271/16 and   1038/17 lodged appeals, arguing that it was clear from the BCEA’s order of 31 May 2011 that their flats had been expropriated for State needs. Appellate judgments 25.     The Baku Court of Appeal delivered separate judgments in each case. Below are summaries of its judgments some of which are summarised together. Applications nos. 66249/16, 77309/16 and 77691/16 26.     On 5 February 2016 (applications nos. 66249/16 and 77309/16) and 21 January 2016 (application no. 77691/16) the Baku Court of Appeal quashed the first-instance court judgments in the three cases concerned and dismissed the applicants’ claims in full. 27.     The court noted, inter alia, that the applicants had voluntarily concluded the sale and purchase contracts, the validity of which they had not contested, and which had not contained any provisions on the payment of additional compensation. It further noted that, in the cases concerned, no decision by the Cabinet of Ministers on expropriation had been taken in respect of the properties, and that the properties had not been expropriated for State needs. 28.     In the cases concerning the applicants in applications nos. 66249/16 and 77309/16, the court, referring to Articles 66.1 to 66.3 of the Law on Expropriation, also added that, in any event, the period for a claim under that Law had expired, since four years had passed since the applicants had moved from the area in question after the sale of their flats. Application no. 66271/16 29.     On 26 January 2016 the Baku Court of Appeal upheld the first ‑ instance court’s judgment dismissing the applicant’s claim, reiterating its reasoning. Application no. 75978/16 30.     On 27 October 2015 the appellate court quashed the first-instance court’s judgment in part, finding that the applicant had failed to lodge her claim for compensation for hardship “within one calendar year”, as required under Article 66.3 of the Law on Expropriation (without specifying the date from which the period of one calendar year was to be calculated). It dismissed the remainder of the BCEA’s and the Ministry of Finance’s appeals and upheld the first-instance court’s judgment in the part allowing the claim in respect of the additional 20% compensation. Application no. 1038/17 31.     On 21 September 2015 the appellate court reversed the lower court’s judgment and allowed the applicant’s claim in respect of the additional 20% compensation under the 2007 Presidential Decree, finding that her property had been demolished for construction of a new highway, which was a State need. Referring to Article 157.9 of the Civil Code, the court concluded that the property in question had been expropriated for State needs. It noted that the fact that, in procedural terms, the expropriation decision had been taken by the BCEA (which had no competence under domestic law to initiate expropriation) and not the Cabinet of Ministers (which had such competence) did not affect or change the actual substance of the transaction and the purpose of the purchase of the applicant’s property. 32.     However, the court dismissed the applicant’s claim in respect of compensation for hardship under the Law on Expropriation, finding that she had failed to provide any evidence that she had resided in the flat in question for more than ten years and that she had encountered difficulties in connection with her moving flats. 33.     On 21 September 2015 the Supreme Court quashed the above ‑ mentioned judgment based on the appeal by the Ministry of Finance, finding the reasoning in respect of the additional 20% compensation incorrect. It remitted the case to the appellate court for fresh examination. 34.     On 25 May 2016 the Baku Court of Appeal, having re-examined the case, dismissed the applicant’s appeal, holding that her property had not been expropriated for State needs and noting that no decision had been taken by the Cabinet of Ministers, the competent body, in this regard. It also added that the applicant had made her claim for compensation for hardship belatedly. Application no. 52821/17 35.     On 30 September 2015 the appellate court upheld the lower court’s judgment allowing the applicant’s claim in the part relating to the additional 20% compensation and dismissing it in the part relating to compensation for hardship. The court noted that even though the defendant had failed to comply with the expropriation procedure under domestic law (without referring to any specific provisions), this could not be grounds for depriving persons whose property had been expropriated of their rights enshrined in the legislation. As to the other part of the claim, it held that the applicant had not submitted her claim in respect of compensation for hardship to the BCEA until 2015 and had therefore failed to comply with the time-limit prescribed by Article 66.3 of the Law on Expropriation. 36.     On 22 December 2016, following an appeal by the Ministry of Finance, the Supreme Court quashed the above-mentioned judgment and remitted it to the appellate court for fresh examination. 37.     Having re-examined the appeal, on 28 February 2017 the appellate court dismissed the applicant’s appeal, reasoning that there had been no expropriation for State needs and that the purchase of her property had constituted a voluntary contractual transaction. It also reiterated its earlier conclusion that the applicant’s claim for compensation for hardship had been lodged belatedly. Cassation appeals 38.     All the applicants lodged cassation appeals, except the applicant in application no. 75978/16, in whose case the appeal was lodged by the opposing party (see paragraph 40 below for details). The applicants maintained that the main purpose of purchasing their property was expansion of the highway, which had economic and strategic importance for the State, and that under Article 157.9 of the Civil Code and Article 3.1.1 of the Law on Expropriation, building roads and other communication lines constituted State needs. 39.     In addition, the applicants made reference to several cases in which similar claims by other individuals living in the same area who had concluded similar contracts with the BCEA following its order of 31 May 2011 had been allowed by the Supreme Court in full or in part (see paragraphs   72-87 below). 40.     In the case of the applicant in application no. 75978/16, the Ministry of Finance lodged a cassation appeal providing the same arguments as in its appeals before the appellate court in the above-mentioned cases. Final decisions of the Supreme Court 41.     On the various dates indicated in the Appendix, the Supreme Court ruled against the applicants, quashing the appellate court’s judgment allowing the claim of the applicant in application no. 75978/16 in part, and upholding the lower court’s judgments dismissing the claims of the applicants in the other applications. Below are summaries of the Supreme Court’s decisions, grouped according to the similarity of the legal reasoning. Cases concerning the applicants in applications nos. 66249/16, 66271/16, 1038/17 and 52821/17 42.     In its decisions concerning these cases, the Supreme Court firstly referred to the relevant sale and purchase contracts between the parties, noting that the validity of the contracts and the purchase price determined had not been contested. 43.     The court further noted that in the cases concerned there had been no expropriation for State needs and that the decision on relocation had not been taken by the Cabinet of Ministers. It held that, as agreed with the Ministry of Finance and the State Committee on Property Issues, the owners of the properties had been paid AZN 1,500 per sq. m and no decision had been taken in respect of the payment of any additional compensation. The Supreme Court therefore concluded that the applicants were not entitled to the additional 20% compensation under the 2007 Presidential Decree. 44.     As to the applicants’ claim concerning compensation for hardship, the court made a general reference to Articles 66.1 to 66.3 of the Law on Expropriation (see paragraph 69 below), without providing further reasoning. In connection with applications nos. 66249/16 and 52821/17, in addition to its conclusion that the applicants’ property had not been expropriated for State needs, it also noted that the applicants had submitted their claims for compensation for hardship belatedly. Cases concerning the applicants in applications nos. 75978/16, 77309/16 and 77691/16 45.     In its decisions concerning these cases, the Supreme Court also referred to the sale and purchase contracts, noting that the applicants had voluntarily sold their flats to the BCEA at a price agreed by both parties. The court further noted that the contracts had not contained any provisions stating that the flats or the land on which they were situated had been expropriated for State needs or determining the payment of any additional compensation. It therefore concluded that the flats had not been expropriated for State needs. 46.     In applications nos. 77309/16 and 77691/16, the Supreme Court also added the following reasoning: “On the other hand, it appears from the case material that there had been no decision by the relevant executive authority (the Cabinet of Ministers of the Republic of Azerbaijan) on expropriation of the area in question for State needs under the [Law on Expropriation]. Even if this were the case, in accordance with Article 30.1 of the [Law on Expropriation], the expropriating authority may acquire the rights to the land from persons affected by the expropriation ... by negotiation (voluntary sale and purchase). Under Article 30.2 of this Law, the expropriating authority, as buyer, or the person [affected by the expropriation] ..., as seller, may be the initiators of the voluntary sale and purchase by negotiation. ... As indicated by the circumstances of the case, the acquisition of the flat in question in accordance with the sale and purchase contract concluded voluntarily between the applicant and the defendant authority by payment of the agreed price was in accordance with the requirements of Articles 646.1 and 648.1 of the Civil Code and Articles 30 and 52.7 of the [Law on Expropriation].” 47.     In all cases, the Supreme Court failed to address the applicants’ submissions concerning previous judgments in which similar compensation claims had been allowed (see paragraphs 72-87 below for a summary of these judgments). RELEVANT LEGAL FRAMEWORK RELEVANT DOMESTIC LAW AND PRACTICE The 1995 Constitution 48.     Article 13 § I of the Constitution provides: “Property in the Republic of Azerbaijan is inviolable and is protected by the State.” 49.     Article 29 § IV of the Constitution provides: “No one shall be deprived of his or her property without a court decision. Total confiscation of property is not permitted. Expropriation of property for State needs may be permitted only subject to prior and fair compensation corresponding to its value.” 50.     The legislative system of the Republic of Azerbaijan is comprised, in order of hierarchy, of the Constitution, acts passed by referendum, laws enacted by Parliament, presidential decrees, decisions of the Cabinet of Ministers and normative acts of the central executive authorities (Articles   148 § I and 149). International treaties to which the Republic of Azerbaijan is a party constitute an integral part of its legislative system (Article 148 §   II). 51.     The President of the Republic of Azerbaijan issues decrees when establishing general rules and presidential orders in respect of other matters (Article 113 § I). Presidential decrees cannot contradict the Constitution and laws. The application and execution of decrees, only if published, are obligatory for all citizens, executive authorities and legal entities (Article   149 § IV). The 2000 Civil Code 52.     Article 43.3 of the Code provides that the Republic of Azerbaijan participates in civil-law relationships in the same way as other legal entities. In such cases, the powers of the Republic of Azerbaijan are exercised by its bodies which are not legal entities. 53.     Article 157.9 of the Civil Code, as in force at the material time, provided: “Private property may be expropriated by the State, when required for State or public needs, only in the cases permitted by law, for the purposes of building roads or other means of communication, delimiting the State border strip or constructing defence facilities, by decision of the relevant State authority [the Cabinet of Ministers], and subject to prior payment of compensation in an amount corresponding to its market value.” 54.     Article 246 of the Code, as in force at the material time, provided: “246.1. A decision to expropriate land for State needs shall be taken by the relevant executive authority [the Cabinet of Ministers] ... in accordance with Article 157.9 of this Code. ... 246.5. The provisions of Articles 246 to 249 of this Code shall, along with the land expropriated for State needs, also apply to buildings (houses, constructions, devices) located or nor located on that land and expropriated for the same purpose.” 55.     Presidential Decree no. 386 of 25 August 2000, which deals with various aspects of implementation of the 2000 Civil Code, as amended by Presidential Decree no. 78 of 17 June 2004 and as in force at the material time, designated the Cabinet of Ministers as “the relevant executive authority” referred to in Articles 157.9 and 246.1 of the Civil Code. 56.     Article 247 of the Code, as in force at the material time, provided: “247.1. The purchase price of land expropriated for State needs shall be calculated in the manner determined by the relevant executive authority and paid to the owner no earlier than [eighty] calendar days and no later than [one hundred and twenty] calendar days from the date he or she receives notification under Article 246.3. 247.2. The purchase price shall include the market price of the land and the immovable property on it, as well as all damage incurred by the owner resulting from the expropriation of his or her land, including loss of profit and damage caused by early termination of his or her obligations to third parties...” 57.     Articles 646.1 and 648.1 are part of sub-chapter 5 (Purchase and sale of immovable items) of chapter 29 (Purchase and sale) of section 7 (Obligations arising out of contracts) of the Code. 58.     Article 646.1 of the Code provides that under the sale and purchase contract, the seller undertakes to transfer the land, house, building, construction, flat or other immovable property to the buyer. 59.     Article 648.1 of the Code provides that when selling and purchasing immovable property, each party complies with his or her obligation to offer or accept by taking all the necessary steps to register the transfer of ownership rights in the State register of immovable property. Law on the Expropriation of Land for State Needs of 20 April 2010 (“the Law on Expropriation”) 60.     The Law on Expropriation provides for complex and detailed procedures and a number of substantive and procedural requirements in respect of expropriation of immovable property. Below is a summary of the expropriation procedure established by the Law and the text of the relevant provisions. 61.     Article 1.1.1 of the Law defines expropriation ( alınma ) as follows: “Expropriation – voluntary or compulsory purchase by the State of land (or part thereof) in private or municipal ownership by termination of the rights of ownership, use and lease, including encumbrances (restrictions) on the use of the land, as well as the repossession of used and/or leased State land from the user or lessee by payment of appropriate compensation.” 62.     Under Article 1.1.2, the definition of “land” also includes immovable property located on it (constructions, buildings and similar objects connected to the land). 63.     Article 3.1 of the Law provides: “The State needs for which expropriation [may take place] under this Law are as follows: 3.1.1. building and installing roads of State importance and other communication lines (main oil and gas pipelines, sewers, high-voltage electricity lines, hydraulic structures); ...” 64.     Land expropriated for State needs may be expropriated on the basis of an agreement with the owner (“voluntary sale and purchase”) or, if no agreement can be reached, in a compulsory manner by court order subject to payment of compensation (“compulsory expropriation”) (Article 4.1). 65.     The Law and Presidential Decree no. 382 of 15 February 2011 on its implementation designate the following State authorities and other bodies as having various roles and powers in the expropriation process: (a) the Cabinet of Ministers as the body which, inter alia , determines the existence of a State need, appoints an “expropriating authority”, and issues an expropriation order (Articles 9 and 19 and other provisions); (b) the “expropriating authority” appointed by the Cabinet of Ministers, which is responsible for executing the expropriation and has a wide range of competences and obligations (Article 6 and other provisions); (c) the Ministry of Finance as the supervisory authority, which monitors compliance of the expropriating authority and other bodies with the requirements of domestic law, examines various complaints, and presents proposals and reports on various aspects of the expropriation to the Cabinet of Ministers (Article 8 and other provisions); (d) an “expropriation group” established by the expropriating authority and including representatives of various State authorities, which holds meetings with the persons affected by the expropriation on various issues (Article 22 and other provisions); (e) a valuation commission established by the Cabinet of Ministers (Article 19 and other provisions); (f) a relocation commission set up by the expropriating authority, which participates in drawing up and implementing a relocation plan and takes the necessary steps to defend the interests of the persons affected by the expropriation (Article 40 and other provisions); (g)   other bodies such as independent appraisers working with the valuation commission (Articles 23-24 and other provisions); and (h) the domestic courts which, inter alia , finalise the “compulsory” expropriation by approving the acquisition by the State of possession of the property (Article   52 and other provisions). 66.     The default “compulsory expropriation” procedure consists of a number of steps taken by the Cabinet of Ministers, the “expropriating authority” and other authorities mentioned above, which include, inter alia , valuation of the property, determination of compensation and assistance in relocation, if necessary (Chapters II, III and V). The expropriation is completed after the acquisition of property is approved by the court upon application of the expropriating authority. If the parties have no objections to the terms of expropriation and compensation, the court approves the acquisition without examining the terms; otherwise, it reviews the relevant documents and complaints (Article 52). The applicant and the expropriating authority are free to use alternative dispute resolution to resolve their disputes (Article 52.7). 67.     As noted above, the Law allows for the option of “voluntary sale and purchase”, which can be initiated by either party (Article 30). The purchase price determined in the context of the “voluntary sale and purchase” is the same in type and substance as the compensation determined in accordance with Chapter VII of the Law (see paragraph 68 below), however, that amount is increased by 10% in order to encourage the person affected to sell voluntarily (Article 32.3). Once an offer containing, inter alia , the proposed price is made (Article 33), the person affected can make a counter-offer, which may be accepted by the expropriating authority subject to obtaining the Ministry of Finance’s consent (Article 34). The purchase of the land is formalised by the conclusion of a sale and purchase contract between the person affected by the expropriation and the expropriating authority acting on behalf of the State (Article 35). Within ninety calendar days, the expropriating authority pays the full price to the owner, bears the costs of transferring ownership to the State and assists the owner in vacating the property and relocating to his or her new place of residence (Article 36). 68.     Chapter VII of the Law on Expropriation concerns compensation. All persons affected by expropriation must be paid fair compensation in accordance with the provisions of the Law. Compensation is calculated by determining either the market price of the land or the recovery price, where the determination of the former is impossible (Articles 55 and 58). Compensation can be paid in different forms, including the allocation of land comparable to the expropriated land in terms of size, quality and production capacity comparable to the expropriated one or a lump sum payment (Article 65). 69.     Article 66 of the Law provides: “66.1. In all cases of expropriation of residential property in accordance with this Law, the expropriating authority shall pay to the claimant compensation for hardship in addition to the payments to which persons affected by the expropriation are entitled. 66.2. Compensation for hardship shall be paid to the person affected by the expropriation on presentation of a document confirming that he or she has lived in the expropriated property as [his or her] main place of residence for at least five years. 66.3. The person affected by the expropriation shall submit his or her claim for compensation for hardship to the expropriating authority within one calendar year of the occurrence of the event provided for in Article 66.2 of this Law. 66.4. Compensation for hardship shall be determined [as a] percentage of the total compensation to be paid to the claimant, depending on the period that the person affected by the expropriation has lived in the residential property: 66.4.1. for a period of 5 to 6 years – 5%; 66.4.2. for a period of 6 to 7 years – 6%; 66.4.3. for a period of 7 to 8 years – 7%; 66.4.4. for a period of 8 to 9 years – 8%; 66.4.5. for a period of 9 to 10 years – 9%; 66.4.6. for a period of more than 10 years – 10%.” Presidential Decree no. 689 of 26 December 2007 70.     Article 2.3 of the Decree provides: “... the owner of the immovable property which is expropriated for State needs shall be paid, in addition to the purchase price, the amount of 20[%] of the market price of that immovable property calculated in accordance with the legislation (... dövlət ehtiyacları üçün alınan daşınmaz əmlakın mülkiyyətçisinə həmin daşınmaz əmlakın qanunvericiliyə uyğun olaraq hesablanmış bazar qiymətinin 20 faizi miqdarında satınalma qiymətinə əlavə haqq ödənilir ).” 71.     Under Article 3 of the Decree, the Presidential Administration was instructed to prepare and present to the President the draft Law on Expropriation within two months. Case-law of the Supreme Court Cases brought by other individuals affected by the BCEA’s order of 31   May 2011 72.     As mentioned above (see paragraph 39 above), in several cases the Supreme Court upheld the lower courts’ judgments allowing in full or in part similar claims lodged by other individuals living in the same area as the applicants who had been affected by the same order of the BCEA. 73.     It appears from those decisions that during the proceedings before the domestic courts, the BCEA and the Ministry of Finance presented arguments similar to those made in the applicants’ cases. (a)    Judgment in case no. 2-1(102)-739/15 74.     On 14 October 2015 the Supreme Court dismissed the BCEA’s cassation appeal and upheld the appellate court’s judgment awarding A.B. the additional 20% compensation and dismissing her claim for compensation for hardship. 75.     It firstly noted that the BCEA’s order of 31 May 2011 had been adopted for expanding the highway which connected the central part of the capital with the Bayil settlement as part of the Silk Way and served as an entry-exit point to the south of the country, establishing new road infrastructure and installing modern engineering communication devices. The court concluded that this showed that A.B.’s property had been expropriated for State needs and that she should therefore be awarded the additional 20% compensation in accordance with the 2007 Presidential Decree. 76.     The court also added that since compensation had already been awarded in previous similar cases, A.B.’s claim should be allowed. (b)    Judgment in case no. 2-1(102)-99/2016 77.     On 7 January 2016 the Supreme Court dismissed the Ministry of Finance’s cassation appeal and upheld the appellate court’s judgment awarding L.K. the additional 20% compensation and dismissing his claim for compensation for hardship. The court held that L.K. was entitled to the additional 20% compensation under the 2007 Presidential Decree and that the fact that the decision on expropriation had not been taken by the competent authority did not exclude his right to claim this compensation. As regards the claim for compensation for hardship, it referred to Articles   66.1 ‑ 66.3 of the Law on Expropriation without providing any specific reasoning. (c)    Judgment in case no. 2-1(102)-102/2016 78.     On 13 January 2016 the Supreme Court dismissed the BCEA’s and the Ministry of Finance’s cassation appeals and upheld the appellate court’s judgment awarding P.A. the additional 20% compensation and dismissing her claim for compensation for hardship. 79.     The court noted that because the aim of the relocation was to expand the highway, establish new road infrastructure and install modern engineering communication devices, P.A.’s flat had been demolished for State needs. 80.     It held that the absence of an expropriation order by the Cabinet of Ministers did not change the fact that the property in question had been expropriated for State needs, and that the fact that there had been no decision only affected the issue of the lawfulness of the expropriation. 81.     Lastly, addressing the Ministry of Finance’s argument about the existence of a sale and purchase contract between the parties, the court noted that although the BCEA had already issued an expropriation order and demolition of her property, demolition work had started and the purchase price for expropriation had been determined, P.A. had been faced with a situation where she had had no other choice but to agree to sign the contract and had therefore not sold her flat voluntarily. (d)    Judgment in case no. 2-1(102)-201/16 82.     On 19 January 2016 the Supreme Court dismissed the BCEA’s and the Ministry of Finance’s cassation appeals and upheld the appellate court’s judgment awarding Z.A. the additional 20% compensation and compensation for hardship. 83.     The court held that the Ministry of Finance’s reliance on the general civil-law provisions on contracts was incorrect because Z.A. had not decided to sell her flat voluntarily, but had done so because of the BCEA’s order. In other words, as she had been in an unequal situation in public-law relations with a State body, Z.A. had had no choice to act otherwise. 84.     The court also noted that the State authority’s failure to comply with the requirements of the Law on Expropriation did not deprive the person affected by expropriation of the right to rely on the provisions of that law for defending his or her property rights. As to the absence of any provision on the obligation to pay additional compensation in the contract, the court noted that the obligation to pay that compensation did not arise from a contract, but from the law. 85.     Lastly, in reply to the Ministry of Finance’s argument that Z.A. had submitted her claim for compensation for hardship to the BCEA four years after the alienation of her property and had therefore missed the time-limit under Article 66.3 of the Law on Expropriation, the court noted that the BCEA had itself had to apply this time-limit when responding to Z.A.’s letter asking for the above compensation before initiating the court proceedings. It added that, following the BCEA’s refusal, Z.A. had applied to the court within the prescribed time-limit. (e)    Judgment in case no. 2-1(102)-198/2017 86.     On 24 January 2017 the Supreme Court dismissed the BCEA’s and the Ministry of Finance’s cassation appeals and upheld the appellate court’s judgment awarding R.J. the additional 20% compensation and compensation for hardship. 87.     The court noted that it was not disputed that funds had been allocated by the State to the BCEA to carry out the demolition work pursuant to the BCEA’s order of 31 May 2011. Referring to the relevant provisions of the 2007 Presidential Decree and the Law on Expropriation and taking into account the fact that R.J. had lived in the expropriated flat for more than ten years before the expropriation, the Supreme Court concluded that the appellate court’s decision awarding her the additional compensation had been justified. Cases brought by individuals