1st of May, 2014
Egypt’s Administrative Court Suspends Reviewing Privatization Cases
Keywords: Infrastructure & Projects, Commercial
Following President Adly Mansour’s approval of the law number 32 of 2014 restricting the right to bring annulment actions against contracts concluded with the government (the “Law”), the Administrative Court decided to suspend all the pending privatization cases to which the Law applies, Alborsa news reported.
The Law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract. The law covers all contracts concluded with the government or any of its entities including government owned companies.
The constitutionality of the Law was challenged in front of the Administrative Court. Such Administrative Court agreed that there are in fact some doubts about the constitutionality of the Law and referred the Law to the Supreme Constitutional Court (the “SCC”) to assess its constitutionality. Until the law’s constitutionality is tested, the Administrative Court will not accept any new privatization cases to which the Law may apply according to Alborsa news. This is because most of the privatization cases are brought by individuals who do not have the authority to challenge the privatization procedure under the Law.
The Law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract. The law covers all contracts concluded with the government or any of its entities including government owned companies.
The constitutionality of the Law was challenged in front of the Administrative Court. Such Administrative Court agreed that there are in fact some doubts about the constitutionality of the Law and referred the Law to the Supreme Constitutional Court (the “SCC”) to assess its constitutionality. Until the law’s constitutionality is tested, the Administrative Court will not accept any new privatization cases to which the Law may apply according to Alborsa news. This is because most of the privatization cases are brought by individuals who do not have the authority to challenge the privatization procedure under the Law.
Egypt’s Administrative Court Suspends Reviewing Privatization Cases
1 May, 2014
Keywords: Infrastructure & Projects, Commercial
Following President Adly Mansour’s approval of the law number 32 of 2014 restricting the right to bring annulment actions against contracts concluded with the government (the “Law”), the Administrative Court decided to suspend all the pending privatization cases to which the Law applies, Alborsa news reported.
The Law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract. The law covers all contracts concluded with the government or any of its entities including government owned companies.
The constitutionality of the Law was challenged in front of the Administrative Court. Such Administrative Court agreed that there are in fact some doubts about the constitutionality of the Law and referred the Law to the Supreme Constitutional Court (the “SCC”) to assess its constitutionality. Until the law’s constitutionality is tested, the Administrative Court will not accept any new privatization cases to which the Law may apply according to Alborsa news. This is because most of the privatization cases are brought by individuals who do not have the authority to challenge the privatization procedure under the Law.
The Law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract. The law covers all contracts concluded with the government or any of its entities including government owned companies.
The constitutionality of the Law was challenged in front of the Administrative Court. Such Administrative Court agreed that there are in fact some doubts about the constitutionality of the Law and referred the Law to the Supreme Constitutional Court (the “SCC”) to assess its constitutionality. Until the law’s constitutionality is tested, the Administrative Court will not accept any new privatization cases to which the Law may apply according to Alborsa news. This is because most of the privatization cases are brought by individuals who do not have the authority to challenge the privatization procedure under the Law.
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