Közbeszerzési Hatóság

176. §

Civil action for stating the invalidity of contracts infringing regulations applicable to procurement procedures

176. §

1. If the Public Procurement Arbitration Board states in its substantial decision that an infringement set out in Article 137(1) has occurred, it shall bring an action with a view to annulling the contract and applying the legal consequences of invalidity. Simultaneously with the initiation of the legal proceeding, the Public Procurement Arbitration Board shall request the court – as an interim measure – to suspend the further execution of the contract. The Public Procurement Arbitration Board is entitled to exemption from all court costs.

2. The Public Procurement Arbitration Board shall initiate the action set out in paragraph 1 within thirty days counted from the date of making its substantial decision. In the case of failing to meet the deadline, a certification may be presented in accordance with the provisions set out in the CP.

3. The Public Procurement Arbitration Board shall publish a notification about initiating the action set out in paragraph 1 on the homepage of the Public Procurement Authority. The notification shall contain the naming of the case in question (the indication of the related procurement procedure), the indication of the decision on the substance of the case, the date of the submission of the claim and the naming of the parties to the proceedings.

4. If the court states the invalidity of the contract due to reasons specified in Article 137(1) in the legal action pursuant to paragraph (1), it shall enforce the legal consequences of ineffectiveness in compliance with the provisions laid down in the Civil Code and those laid down in this Act.

5. If the court declares the contract concluded pursuant to a procurement procedure to be valid under Article 137(3), it shall impose a fine, the sum of which shall be – taking into consideration all the circumstances relevant to the case – not more than fifteen percent of the value of the contract. If, in the course of enforcing the legal consequences of ineffectiveness, the court orders payment for monetary value of the services yet uncompensated, it shall impose a fine the sum of which shall equal – taking into consideration all the circumstances relevant to the case – not more than ten per cent of the contract value.

6. The legal action specified in paragraph 1 falls within the exclusive competence of the administrative and labour court trying the case in the administrative proceeding pursuant to Article 170 initiated in relation to the same infringement of the public procurement law.  If a request for judicial review was lodged against the substantial decision of the Public Procurement Arbitration Board stating an infringement specified in Article 137(1) and the administrative proceeding was initiated later than the civil action, the case shall be referred to the court trying the case in the administrative proceeding pursuant to Article 170. The administrative proceeding and the civil action initiated by the Public Procurement Arbitration Board shall be consolidated. The Public Procurement Arbitration Board shall inform without delay the court trying the case in the civil action if an application for the judicial review of its substantial decision stating an infringement specified in Article 137(1) was submitted to it.

7. As regards the consolidated proceedings specified in paragraph 6, Chapter XX of the CP shall apply with the derogations defined in Articles 173(2), (5)-(7) and 174.