Right of permanent land use: The Supreme Court named features of dispute consideration

In March 2024, the Subsidiary Enterprise "Fish Farm "Tsumany" filed a lawsuit against the Tsumanska Village Council of Volyn Region, requesting the court to recognize as unlawful and cancel the decision of the Tsumanska Village Council dated 19.02.2024 No. 33/74. This was reported by the Northwestern Appellate Commercial Court.

The claims were justified by the fact that the contested decision of the council contradicts the legislation and violates the plaintiff's rights regarding the specified land plot, since the defendant had no legal grounds to terminate the plaintiff's right to use the disputed land plot.

By the ruling of the Northwestern Appellate Commercial Court dated 03.02.2026, the decision of the Commercial Court of Volyn region dated 27.10.2025 was canceled, and a new decision was made, which satisfied the claim.

The appellate court established the following circumstances.

In 2001, the Council of People's Deputies of Kivertsivskyi district of Volyn region issued two state acts to the SE "Fish Farm "Tsumany" of JSC "Volynfishfarm" for the right of permanent use of land plots in the territory of Kivertsivskyi district for fish farming. Within the land plots for which the SE "Fish Farm "Tsumany" was issued state acts for permanent land use, three land plots were created in 2017 for further lease.

The dispute in the case under consideration arose in connection with the presence/absence of grounds for recognizing as unlawful and canceling the decision of the Tsumanska Village Council dated 19.02.2024 No. 33/74 on the termination of the right of permanent land use by SE "Fish Farm "Tsumany" according to the State Act on the right of permanent land use.

In the ruling of the Grand Chamber of the Supreme Court dated 05.11.2019 in case No. 906/392/18, it is stated that the right of permanent use of a land plot acquired by a person in the prescribed manner, in accordance with the legislation in force at the time of acquiring the right of permanent use, is not lost and is not subject to mandatory replacement.

Citizens and legal entities cannot lose the right to use a land plot previously granted to them in cases established by law in the absence of grounds established by law (ruling of the Grand Chamber of the Supreme Court dated 05.11.2019 in case No. 906/392/18).

The appellate court established circumstances according to which: SE "Fish Farm "Tsumany" is a specialized fish farming enterprise for freshwater fish breeding and is the legal successor of SE "Fish Farm "Tsumany" of JSC "Volynfishfarm", as well as that on 16.05.2017, Popik L.P. registered ownership of a real estate object – a fishing house on wintering grounds.

As the Supreme Court notes, the appellate court established that the decision of the Tsumanska Village Council dated 19.02.2024 No. 33/74 contradicts the cited legislative norms regarding the grounds for terminating the right of permanent use of the disputed land plot and violates the plaintiff's corresponding rights regarding the specified land plot, acquired by the latter in the manner prescribed by law.

The Supreme Court, by paragraph "e" of part 1 of article 141 of the Land Code, provides that the grounds for terminating the right to use a land plot is the acquisition by another person of ownership of a residential house, building, or structure located on the land plot.

According to article 120 of the Land Code and article 377 of the Civil Code (in the version at the time Popik L.P. acquired ownership of the real estate), in case of acquiring ownership of a residential house, building, or structure owned by another person, the ownership right and the right to use the land plot on which these objects are located are terminated. The person who acquired ownership of the residential house, building, or structure located on the land plot owned by another person acquires ownership of the land plot or its part on which they are located without changing its designated purpose. If the residential house, building, or structure is located on a land plot in use, then upon acquisition of ownership of these objects, the acquirer obtains the right to use the land plot on which they are located under the same conditions and to the same extent as the previous land user.

In the case under consideration, the appellate court established that the area of the land plot necessary to service the fishing house on the wintering grounds with an area of 24.4 sq.m. is 0.015-0.020 ha, which is significantly less than the area of the land plot of 1.6248 ha, the right of permanent use of which belonged to SE "Fish Farm "Tsumany" and which was terminated by the contested decision of the Tsumanska Village Council dated 19.02.2024 No. 33/74, and the parties to the case did not provide evidence confirming the need to establish a larger land plot area to service the fishing house.

At the same time, the appellate court, considering the legal conclusions set out in the ruling of the Supreme Court in the composition of the judicial panel for the consideration of cases regarding land relations and property rights of the Commercial Cassation Court, set out in the ruling dated 23.11.2023 in case No. 916/3030/22, rightly noted that the owner of real estate is not deprived of the right and opportunity to independently formalize the right to the part of the land plot belonging to him, located under the real estate object and necessary for its servicing, in accordance with the procedure for granting land plots of state and communal ownership for use, provided for by articles 123, 124 of the Land Code.

At the same time, under the circumstances established by the appellate court in the case under consideration, the decision of the Tsumanska Village Council dated 19.02.2024 No. 33/74 is not based on the requirements of the legislation regarding the procedure for terminating the right to use a land plot and violates the rights and legitimate interests of the permanent land user (plaintiff).

As a result of the cassation review, the cassation court left the appellate court's ruling unchanged.

The full text of the Supreme Court ruling dated 06.05.26 in case No. 903/229/24 can be found at this link.

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