Orders nº T-475/20 of Tribunal General de la Unión Europea, November 27, 2020

• Resolution Date: November 27, 2020
• Issuing Organization: Tribunal General de la Unión Europea
• Decision Number: T-475/20

(Application for interim measures - Grant agreement concluded in the framework of the Seventh Framework Programme for research, technological development and demonstration activities (2007-2013) - Recovery of sums paid - Application for suspension of operation of a measure - No urgency)

In Case T-475/20 R,

LE, represented by M. Straus, lawyer,

applicant,

v

European Commission, represented by J. Estrada de Solà, acting as Agent,

defendant,

APPLICATION under Article 299 TFEU for suspension of operation of Commission Decision C(2020) 3988 final of 9 June 2020 establishing an enforceable financial obligation against the applicant,

THE PRESIDENT OF THE GENERAL COURT

makes the following

Order

Facts, procedure and forms of order sought

1 The applicant, LE, is a company which offers clean and sustainable products and processes using technology based on carbon dioxide (CO2).

2 In the context of the Seventh Framework Programme for research, technological development and demonstration activities (2007-2013), adopted by Decision No 1982/2006/EC of the European Parliament and of the Council of 18 December 2006 (OJ 2006 L 412, p. 1), the European Commission concluded, on 28 June 2011, a grant agreement ENER/FP7/268208/ALL-GAS (‘the grant agreement’) with Aqualia Gestion Integral del Agua SA, acting as coordinator of the implementation of the project entitled ‘Industrial scale demonstration of sustainable algae cultures for biofuel production (ALL-GAS)’ (‘the project’).

3 The applicant, which joined the project as a contractor, was entitled to invoice the eligible costs of its subsidiary, which remained a third party to the agreement, thus making the applicant alone liable to the European Union.

4 On 27 July 2011, the Commission granted pre-financing of EUR 2 487 338 to the coordinator.

5 On 8 September 2011 and 28 June 2012, two payments were made to the applicant, from the abovementioned amount, totalling EUR 514 552.91.

6 On 12 February 2013, the Commission made an interim payment in the amount of EUR 270 187.90 to the applicant.

7 On 8 August 2013, the Commission suspended the grant agreement for non-compliance with contractual obligations, on account of the ‘significant level of distrust amongst the consortium partners which [had an impact on] the implementation of the project’.

8 By letter of 14 August 2013, the coordinator informed the Commission of its complaints concerning the applicant’s conduct.

9 By letter of 26 September 2013, having regard in particular to the complaints set out in the letter of 14 August 2013, the members of the project notified the applicant of their decision to request an amendment to the grant agreement in order to have the participation of the applicant and its subsidiary under that agreement terminated.

10 On 21 December 2013, the applicant informed the Commission of its position regarding the possible termination of its participation under the grant agreement.

11 On 20 June 2014, an amendment to the grant agreement was agreed in order to note the applicant’s withdrawal from participation, as a beneficiary under that agreement, with effect from 26 July 2013. The amendment to the grant agreement also noted the withdrawal of third parties connected with the applicant, with effect from 26 July 2013.

12 On 5 November 2014, the Commission sent a payment letter to the coordinator for the second interim period of the project, in which it indicated that an amount of EUR 487 669.65 was to be recovered from the applicant.

13 By letter of 19 November 2014, the members of the project requested the applicant to reimburse the amount of EUR 487 669.65.

14 On 8 January 2016, following a series of letters concerning the recovery of the abovementioned payment, a meeting took place between the applicant and the Commission.

15 From 11 to 15 April 2016, the applicant’s subsidiary was audited in connection with the costs declared for the first and second reference periods of the grant agreement.

16 On 14 October 2016, the draft audit report was sent to the applicant’s subsidiary.

17 On 11 November 2016, the applicant’s subsidiary sent its observations on the draft audit report.

18 On 16 December 2016, the Commission sent the letter of its findings with the final audit report to the applicant’s subsidiary.

19 On 26 October 2017, the Commission sent the applicant a pre-information letter informing it of the Commission’s intention to recover from it the sums of EUR 10 910.01 and EUR 963.80, in the context of the implementation of the audit report of the applicant’s subsidiary.

20 Also on 26 October 2017, the...