Judgment of the General Court (Seventh Chamber) of 7 October 2010 – Commission v Gal‑Or

(Case T-136/09)

Arbitration clause – Contract for financial assistance concluded under a specific research and technological development programme in the field of non‑nuclear energy – Failure to comply with the contract – Reimbursement of advance payments – Default interest – Default procedure

1.                     Procedure – Referral to the General Court under an arbitration clause – Jurisdiction of the Community judicature defined exclusively by Article 238 EC and the arbitration clause – Debt owing to the Commission not directly originating in contractual relations, but in the implementation of judgments delivered by a national court – General Court having no jurisdiction (Arts 238 EC and 240 EC) (see paras 32-35)

2.                     Procedure – Referral to the General Court under an arbitration clause – Contract granting Community financial assistance for a research, technological development and demonstration project – Non-compliance with obligations under the contract – Right of the Commission to repayment of the advance, with interest for delay (Art. 238 EC; Council Decision 94/806) (see paras 45-46, 62-63, 68-69)

Re:

ACTION on the basis of an arbitration clause, seeking an order that Mr Gal‑Or reimburse the amount of EUR 205 611 advanced to him by the Commission in the context of contract IN/0042/97, together with default interest, and for payment of default interest on the amount of EUR 9 231.25, which is the amount of the costs incurred in an action brought by Mr Gal-Or against the Commission before the courts in the Netherlands.

Operative part

The Court:

1. Orders Mr Benjamin Gal-Or to pay to the European Commission the principal amount owing of EUR 205 611, together with interest at the rate of:

–        2.75% from 2 March 2003;

–        2.50% from 7 March 2003;

–        2.00% from 6 June 2003;

–        2.25% from 6 December 2005;

–        2.50% from 8 March 2006;

–        2.75% from 15 June 2006;

–        3.00% from 9 August 2006;

–        3.25% from 11 October 2006;

–        3.50% from 13 December 2006;

–        3.75% from 14 March 2007;

–        4.00% from 13 June 2007;

–        4.25% from 9 July 2008;

–        3.75% from 15 October 2008;

–        3.25% from 12 November 2008;

–        2.50% from 10 December 2008;

–        2.00% from 21 January 2009;

–        1.50% from 11 March 2009;

–        1.25% from 8 April 2009;

–        1.00% from 13 May 2009;

2. Dismisses the action as to the remainder;

3. Orders Mr Gal‑Or to pay the costs.