WAS LODGED WITHIN THE PERIOD PRESCRIBED BY LAW , IS THEREFORE ADMISSIBLE .
( B ) SUBSTANCE
13 THE APPLICANTS CONTEST THE VIEW THAT ARTICLE 4 OF COMMISSION DECISION 78/706 MAY BE INTERPRETED AS LAYING DOWN A PRECLUSIVE PERIOD . THEY MAINTAIN , MOREOVER , THAT IF THAT WERE THE CASE , BY ATTACHING SUCH A LEGAL EFFECT TO THE PERIOD WHICH IT LAID DOWN THE COMMISSION WOULD HAVE EXCEEDED THE POWERS OF IMPLEMENTATION CONFERRED UPON IT BY ARTICLE 124 OF THE TREATY AND ARTICLE 13 OF REGULATION ( EEC ) NO 2396/71 OF THE COUNCIL OF 8 NOVEMBER 1971 ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1979 ( III ), P . 924 ), SINCE THE COUNCIL ALONE HAS SUCH POWER BY VIRTUE OF ARTICLE 127 OF THE TREATY .
14 THE COMMISSION ' S POWERS TO LAY DOWN TIME-LIMITS AND PENALTIES FOR FAILURE TO COMPLY THEREWITH MUST BE DETERMINED IN THE LIGHT OF THE POWERS CONFERRED UPON THE COUNCIL AND THE COMMISSION BY THE TREATY AND BY THE PROVISIONS ADOPTED FOR THE APPLICATION THEREOF AND IN THE LIGHT OF THE REQUIREMENTS OF SOUND ADMINISTRATION .
15 WITH REGARD TO THE EUROPEAN SOCIAL FUND , ARTICLE 124 OF THE TREATY EXPRESSLY PROVIDES THAT THE FUND IS TO BE ADMINISTERED BY THE COMMISSION . PURSUANT TO THAT ARTICLE , THE COUNCIL HAS EXPRESSLY PROVIDED IN ARTICLE 11 OF REGULATION NO 2396/71 OF 8 NOVEMBER 1971 IMPLEMENTING THE COUNCIL DECISION OF 1 FEBRUARY 1971 ON THE REFORM OF THE EUROPEAN SOCIAL FUND THAT THE COMMISSION IS TO ENSURE THE CONTROL OF THE USE OF THE FUNDS GRANTED TO THE SOCIAL FUND . THE COUNCIL HAS ALSO PROVIDED IN ARTICLE 13 OF THE REGULATION THAT THE COMMISSION IS TO BE RESPONSIBLE FOR TAKING THE NECESSARY MEASURES FOR IMPLEMENTING THE RULES LAID DOWN BY THE REGULATION . THE DUTY OF ADMINISTRATION AND CONTROL WITH WHICH THE COMMISSION IS THUS ENTRUSTED AND THE REQUIREMENTS RELATING TO THE SOUND ADMINISTRATION OF COMMUNITY FINANCES NECESSARILY IMPLY THAT THE ACCOUNTS OF THE SOCIAL FUND MUST BE CLEARED WITHIN A REASONABLE PERIOD AND THAT THE COMMISSION IS EMPOWERED TO DETERMINE THAT PERIOD AND TO ATTACH TO IT PENALTIES WHICH WILL ENSURE ITS OBSERVANCE . IN VIEW OF THE IMPORTANCE OF THAT PERIOD FOR THE SOUND ADMINISTRATION OF THE SOCIAL FUND , IT IS IMPOSSIBLE TO RULE OUT THE POSSIBILITY THAT THE PENALTIES PROVIDED FOR MAY EXTEND TO THE LOSS OF THE RIGHT TO PAYMENT AS A RESULT OF THE FIXING OF A PRECLUSIVE PERIOD .
16 THE PRINCIPLE OF LEGAL CERTAINTY , HOWEVER , REQUIRES THAT A PROVISION LAYING DOWN A PRECLUSIVE PERIOD , PARTICULARLY ONE WHICH MAY HAVE THE EFFECT OF DEPRIVING A MEMBER STATE OF THE PAYMENT OF FINANCIAL AID ITS APPLICATION FOR WHICH HAS BEEN APPROVED AND ON THE BASIS OF WHICH IT HAS ALREADY INCURRED CONSIDERABLE EXPENDITURE , SHOULD BE CLEARLY AND PRECISELY DRAFTED SO THAT THE MEMBER STATES MAY BE MADE FULLY AWARE OF THE IMPORTANCE OF THEIR COMPLYING WITH THE TIME-LIMIT .