Judgment of the General Court (Fifth Chamber) of 17 October 2012 — Commission v EU Research Projects

(Case T-220/10)

Arbitration clause — Contract concluded in the framework of the specific programme for research, technological development and demonstration on a ‘User-friendly information society’ — Withdrawal from the project — Reimbursement of part of the amount advanced by the Commission — Default interest — Procedure by default

1.                     EU budget — Community financial assistance — Obligation of the beneficiary to comply with the conditions for grant of the aid — Financing covering only expenses actually incurred — No proof of the reality of the expenses declared — Ineligible expenses (Art. 317 TFEU) (see paras 28, 29)

2.                     Proceedings — Referral to the General Court under an arbitration clause — Contract providing for Community financial assistance for a research and development project — Claim for repayment of certain costs — Reduction of the eligible costs — Commission’s right to repayment of the advance, plus default interest at the rate applied by the European Central Bank (Art. 272 TFEU) (see paras 30-47)

Re:

ACTION under Article 272 TFEU seeking an order that the defendant reimburse part of the amount advanced by the Commission, together with default interest, under contract IST-2001-34850.

Operative part

The Court:

1. Orders EU Research Projects Ltd to repay to the European Commission the sum of EUR 102 039.32, plus accrued default interest calculated at the rate of 4.80% per annum from 29 December 2006 until the date of full payment of the amount due;

2. Orders EU Research Projects Ltd to pay the costs.