Judgment of the General Court (First Chamber) of 12 July 2016 — Commission v Thales développement et coopération

(Case T‑326/13)

‛Arbitration clause — Fourth and fifth framework programme for research, technological development and demonstration activities — Contracts concerning projects on the design and development of direct methanol fuel cells — Nullity of contracts on grounds of fraud — Repayment of financial contributions from the European Union — Regulation (EU, Euratom) No 2988/95 — Limitation period — Application of French and Belgian law — Rights of defence — Interest’

1. Own resources of the European Union — Regulation on protection of the financial interests of the Union — Proceedings relating to irregularities — Limitation period — Applicability to a claim for repayment of financial contributions paid by the Commission under a contract concluded in the context of an EU framework programme — Exclusion — Claim introduced following controls carried out by the European Anti-Fraud Office — Irrelevant (European Parliament and Council Regulation No 1073/1999; Council Regulations No 2988/95, Arts 1(1) and 2, 3(1), 4 and 5, and No 2185/96) (see paras 52, 55, 58)

2. EU law — Principles — Rights of defence — Whether applicable to administrative procedures initiated by the Commission — Scope — Application to a procedure for recovering debts of contractual origin in respect of a recipient of European funds — Exclusion (Art. 272 TFEU; Council Regulation No 1605/2002, Art. 119(2)) (see paras 73, 74)

3. EU law — Principles — Rights of defence — Audi alteram partem rule — Compliance in the context of judicial proceedings — Scope (see paras 76, 77)

Re:

ACTION based on Article 272 TFEU and seeking an order from the Court that the defendant repay all of the financial contributions paid by the Commission to its legal predecessor, together with interest, in the context of Contract JOE3-CT 97-0063 under the fourth framework programme of European Community activities in the field of research and technological development and demonstration (1994-1998), established by Decision No 1110/94/EC of the European Parliament and of the Council of 26 April 1994 (OJ 1994, L 126, p. 1), and in the context of Contract ENK6-CT 2000-00315 under the fifth framework programme of the European Community for research, technological development and demonstration activities (1998-2002), established by Decision No 182/1999/EC of the European Parliament and of the Council of 22 December 1998 (OJ 1999, L 26, p. 1).

Operative part

The Court:

1. Orders Thales développement et coopération SAS to repay to the European Commission the amounts paid to its legal predecessor in performance of Contract JOE3-CT 97-0063, under the fourth framework programme of European Community activities in the field of research and technological development and demonstration (1994-1998), established by Decision No 1110/94/EC of the European Parliament and of the Council of 26 April 1994, set out below: — The amount of EUR 162195.79, together with interest at the statutory rate laid down by French law, running from the date of payment of that amount until complete repayment thereof; — The amount of EUR 179201, together with interest at the statutory rate laid down by French law, running from the date of payment of that amount until complete repayment thereof; — The amount of EUR 167612.49, together with interest at the statutory rate laid down by French law, running from the date of payment of that amount until complete repayment thereof; — The amount of EUR 136892.29, together with interest at the statutory rate laid down by French law, running from the date of payment of that amount until complete repayment thereof; — The amount of EUR 54434.09, together with interest at the statutory rate laid down by French law, running from the date of payment of that amount until complete repayment thereof.

2. Orders Thales développement et coopération to repay to the European Commission the amounts paid to its legal predecessor in performance of Contract ENK6-CT 2000-00315, under the fifth framework programme of the European Community for research, technological development and demonstration activities (1998-2002), established by Decision No 182/1999/EC of the European Parliament and of the Council of 22 December 1998, set out below: — The amount of EUR 232389.04, together with interest at the statutory rate laid down by Belgian law, running from the date of payment of that amount until complete repayment thereof; — The amount of EUR 218734.67, together with interest at the statutory rate laid down by Belgian law, running from the date of payment of that amount until complete repayment thereof; — The amount of EUR 237504.86, together with interest at the statutory rate laid down by Belgian law, running from the date of payment of that amount until complete repayment thereof; — The amount of EUR 124192.86, together with interest at the statutory rate laid down by Belgian law, running from the date of payment of that amount until complete repayment thereof.

3. Orders the Commission to pay half of the costs incurred by Thales développement et coopération.