Judgment of the General Court (Fourth Chamber) of 25 January 2017

Judicial proceedingsGeneral Court seised under an arbitration clauseContract subject to national lawApplicability of national substantive lawInapplicability of national rules on jurisdictionNational rules on evidence falling under substantive law

(Art. 272 TFEU)

(see paras 40-46)

EU budgetEU financial assistanceObligation on the beneficiary to comply with the conditions for grant of the assistanceEstablishment of an audit report by the CommissionAudit report not constituting a document preparatory to a measure adversely affecting the applicantInapplicability of the audi alteram partem principle and the right to be heard

(Arts 288 TFEU and 299 TFEU)

(see paras 52-54)

EU budgetEU financial assistanceObligation on the beneficiary to comply with the conditions for grant of the assistanceFinancing covering only expenses actually incurredDemonstration that the expenses actually incurredBurden of proof

(Art. 317 TFEU)

(see paras 63-65, 128, 129)

EU budgetEU financial assistanceObligation on the beneficiary to comply with the conditions for grant of the assistanceFinancing covering only expenses actually incurredDemonstration that the expenses actually incurredStaff costsNon-compliance with obligation to produce reliable time-sheets in order to justify the staff costs declared by way of implementation of the agreementsIneligible expenses

(see paras 82-97)

EU budgetEU financial assistanceObligation on the beneficiary to comply with the conditions for grant of the assistanceFinancing covering only expenses actually incurredDemonstration that the expenses actually incurredFinancial audit drawn up by the CommissionRefusal to grant access to the information requested by the auditorsInfringement of the conditions for granting assistance

(see paras 110-119)

EU budgetEU financial assistanceObligation on the beneficiary to comply with the conditions for grant of the assistanceFinancing covering only expenses actually incurredProceedings brought by the Commission for recovery of advances made in the context of the assistanceDemand for recovery arising from stipulations of the agreementsNo breach of principle of proportionality

(see para. 134)

EU budgetEU financial assistanceObligation on the beneficiary to comply with the conditions for grant of the assistanceFinancing covering only expenses actually incurredProceedings brought by the Commission for recovery of advances made in the context of the assistanceAccount taken of the conclusions of a final audit report

(see para. 142)

Re:

First, application based on Article 272 TFEU and seeking a declaration that the Commission’s demand for reimbursement of an amount paid to the applicant under agreement No 508015 to fund the project entitled ‘Knowledge Sharing and Decision Support for Healthcare Professionals’, concluded under the Sixth Framework Programme of the European Community for research, technological development and demonstration activities (2002-2006) is unfounded, and, secondly, a counterclaim seeking an order against the applicant for repayment of an amount wrongfully paid under that agreement.

Operative part

The Court:

Dismisses the action brought by ANKO AE Antiprosopeion, Emporiou kai Viomichanias;

Orders ANKO AE Antiprosopeion, Emporiou kai Viomichanias to pay to the European Commission the amount of EUR 296 149,77, plus default interest from 3 May 2014 and until full payment of that amount, at the rate of 3.75%;

Orders ANKO AE Antiprosopeion, Emporiou kai Viomichanias to pay the costs.