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The Constitutional Court of Georgia Adopts a Ruling in the Case of "Shorena Tsiklauri v. the Minister of Justice of Georgia."
On March 26, 2026, the First Board of the Constitutional Court of Georgia refused to admit the Constitutional Claim №1901 for consideration on the merits and by a ruling adopted at the preliminary session, declared invalid as of July 1, 2026, the third sentence of paragraph 3 of Article 3 of "Forms and Rules for Conducting Enforced Auction", approved by Annex №1 to Order №21 of January 31, 2011, of the Minister of Justice of Georgia "On Approving Forms, Rules and Procedures for Conducting Enforced Auction".
According to the disputed norm, at the second repeated auction, the initial price of the property was set at 5% of the market value specified in the Property Valuation Act.
The Constitutional Court of Georgia held that the disputed regulation, similarly to the regulation reviewed in Judgment №2/2/867 of May 28, 2019, did not require that transitional rights existing on the property be taken into account when determining its market value. In turn, the absence of an appropriate safeguard ensuring that these transitional rights were considered when assessing the property gave rise to the possibility of setting a sale price of the property that significantly deviated from its market value. Due to the inadequacy of this initial price, there was a high probability that the property would not be sold at either the first or the first repeated auction. In these circumstances, the Constitutional Court of Georgia considered that the State, also in the present case, failed to take reasonable measures necessary for the sale of the property at an adequate price at auction, since at the first and first repeated auction the State did not provide an appropriate normative mechanism capable of determining the initial value close to the real value of the property.
In view of the foregoing, the Constitutional Court of Georgia concluded that the disputed act contained a norm of the same content which had been declared unconstitutional by the Judgment of the Constitutional Court of Georgia №2/2/867 of May 28, 2019.
