On 1 June 2021 the Judicial Panel on Economic Disputes of the Supreme Court of the Russian Federation examined case No. 305-ЭС21-82 on the dispute between the company (a tenant) and the Department of Urban Property of Moscow (a leaseholder), in which the Panel established the need to apply the reduced rental rate stipulated by the legislative act of the constituent entity of the Federation, despite the additional agreement with the leaseholder on different terms.

The dispute was initiated upon the claim of the Department of Urban Property of Moscow against the company on the recovery of rent debt for the use of non-residential premises. Earlier the parties had concluded the additional agreements on extension of the lease agreement several times. Prior to signing the last additional agreement, the tenant as a small-sized and medium-sized enterprise sent requests to the leaseholder for establishing the reduced rental rate stipulated by the Decree of the Government of Moscow dated 25 December 2012 No. 800-ПП, but later signed the additional agreement providing for the rent at the market rate.

As a result, the tenant was not able to reach agreement with the leaseholder on the need to apply the reduced rate for the lease of the premises to it. Eventually the leaseholder, thinking that the tenant did not pay the rent in full, submitted the claim on the recovery of debt in the court. By the decision of the first-degree arbitrazh (commercial) court, upheld by the appellate court and the cassation court, the debt was recovered.

However, the Judicial Panel on Economic Disputes of the Supreme Court of the Russian Federation did not agree with the lower courts and remanded the case for reconsideration by the first-degree court, stating, in particular, that the company as a small-sized and medium-sized enterprise had the right for the application of the reduced rental rate, despite its signing of the additional agreement providing for another rental rate (see Ruling of the Judicial Panel on Economic Disputes of the Supreme Court of the Russian Federation dated 01 June 2021 No. 305-ЭС21-82).