A woman purchased property at a privatization auction but applied to the wrong court — Supreme Court decision
Disputes regarding the privatization of state or communal property, including those concerning the determination of the scope of rights to the land plot under the privatized object, are subject to consideration under commercial proceedings. The participation of an individual in the property privatization procedure does not change the legal nature of such a dispute and is not grounds for resolving it under civil proceedings.
A woman purchased several real estate objects at an auction that previously belonged to the state. These buildings were located on a land plot that was in permanent use by a correctional colony.
After purchasing the property, she believed that along with the buildings, the right to use the corresponding part of the land plot also transferred to her. Therefore, she applied to the court demanding to terminate the land use right of the colony and to recognize this right as hers.
To substantiate her claims, the plaintiff stated that in March 2023 she acquired ownership of real estate objects (barracks, enclosures, etc.) through small privatization. These objects are located on a land plot that is in permanent use by the Bozhkivska correctional colony. The plaintiff considered that with the acquisition of ownership rights to the real estate, the right to use the land automatically transferred to her (the principle of unity of the legal fate of the land plot and the building), and therefore requested to terminate the colony’s right to part of the plot and to recognize this right as hers.
The court of first instance, whose conclusions were agreed upon by the appellate court, denied the claim due to the absence of legal grounds for its satisfaction.
Position of the Supreme Court
The Supreme Court disagreed with the conclusions of the lower courts, overturned their decisions, and closed the proceedings in the case based on paragraph 1 of part 1 of article 255 of the Civil Procedure Code of Ukraine.
According to the provisions of the Law of Ukraine "On Privatization of State and Communal Property" and the consistent practice of the Grand Chamber of the Supreme Court, cases in disputes regarding the privatization of property (except for the state housing stock) fall within the exclusive jurisdiction of commercial courts.
Disputes regarding privatization arise in connection with the alienation of state property and the emergence of the corresponding scope of rights in private ownership entities. Since this dispute concerns the scope of rights to the land plot acquired by the plaintiff precisely in the process of real estate privatization, it must be considered according to the rules of commercial proceedings.
The Supreme Court emphasized that the participation of an individual in the privatization procedure does not change the commercial nature of the dispute. Therefore, the lower courts mistakenly considered the case under civil proceedings.
Supreme Court ruling dated June 24, 2026, in case No. 545/487/25 (proceeding No. 61-3868sv26).
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