Veikko Puolakainen, Sworn Advocate and partner at NOVE successfully represented AS Värska Vesi in challenge proceedings in a dispute with the Estonian Agricultural Registers and Information Board (ARIB). The dispute began from the fact that ARIB refused to satisfy the request of AS Värska Vesi for investment support for medium and large enterprises for processing and marketing agricultural products. The support was due to be granted from the Structural Funds of the European Union and from the state budget based on the Estonian Rural Development Plan for 2014-2020. The support was requested to purchase new equipment for the processing of agricultural products. According to the initial reasons provided by ARIB, the activity subject to the request was not eligible for support and did not comply with the prescribed requirements for receiving the support because the quantity of the agricultural products used as input for processing is irrelevant. Together with the client, a challenge was filed against ARIB´’s refusal, requesting the revocation of the previous decision and for a new decision to be made to satisfy the investment support. AS Värska Vesi found that the regulation for the granting of support does not allow for the support to be refused and a distinction to be made between relevant and irrelevant quantities. What matters is that the products used as input should be agricultural products. As a result of the filing of the challenge, ARIB satisfied the challenge, revoked its previous decision and reprocessed the request. Upon reviewing the request for the second time, ARIB satisfied the request for investment support and decided to grant the support to AS Värska Vesi in the total amount of 593,252.40 euros.
This was a remarkable case in the sense that this authority (ARIB) generally does not change its previous decisions during challenge proceedings. This was also a complex dispute in terms of its subject matter, as both EU and national legislation pertaining to the payment of support is exceptionally voluminous. Thorough preparatory work on part of the client and cooperation regarding substantive issues that formed the basis of the challenge ensured the success of the challenge. ARIB agreed that it was not possible to distinguish the quantity thresholds of agricultural products used as input for processing. As a result of the satisfaction of the challenge, we managed to avoid a long court action and as a consequence of the granting of the support, the client can focus on its principal activity. The main purpose of the payment of the support within the framework of this particular measure, was to support undertakings operating in rural areas, develop entrepreneurship and promote rural life and increase the competitiveness of undertakings. In a broader perspective, the total investment planned by AS Värska Vesi is notable in the context of Estonia and also serves regional policy objectives.
Sworn Advocate Veikko Puolakainen specialises in complicated court actions of an economic nature, and has successfully represented clients in civil as well as administrative matters for almost twenty years.