CELEX: C1999/246/85
Language: en
Date: 1999-08-28 00:00:00
Title: Case T-152/99: Action brought on 24 June 1999 by Hijos de Andrés Molina S.A. (in liquidation) against the Commission of the European Communities

28.8.1999              EN                     Official Journal of the European Communities                                         C 246/43
The applicant claims that the Court of First Instance should:            Pleas in law and main arguments
— annul Commission Decision C (1999) 533 of 4 March
     1999 or, in the alternative, reduce the amount of the grant         This is an action for annulment of the Commission’s decision
     to be repaid to the Commission to such extent as may be             (C(1999)41 final) of 3 February 1999 on State aid awarded by
     decided in the course of the proceedings;                           the Spanish Government to the applicant company. In that
                                                                         decision, the Commission declared that the Spanish authorities
— order the Commission to pay the costs.                                 had granted to Hijos de Andrés Molina S.A. — a producer of
                                                                         meat, dairy products and animal feed, now in liquidation —
                                                                         State aid incompatible with the EC Treaty, and that that
Pleas in law and main arguments                                          amount should be repaid.
The applicant contests Commission Decision C (1999) 533 of               In support of its claims, the applicant alleges the following
4 March 1999, which reduces the contribution made to one                 grounds for annulment:
of its subsidiaries by the Commission under Commission
Decision C (96) 2235 of 13 September 1996 concerning grant               — infringement of Articles 87 and 88(3) of the EC Treaty [ex
of the EAGGF, Guidance Section, contribution under Council                    Articles 92 and 93(3)], in so far as the aid granted prior to
Regulation (EEC) No 4256/88 (1), in connection with Project                   1995 must be regarded as compatible with the common
No 95.ES.06.005 entitled ‘Demonstrative project for the                       market;
processing of castor-oil plants (Ricinus Communis) in agricul-
tural undertakings for the extraction of natural aromatic
essences’.                                                               — manifest error in the findings of fact and infringement of
                                                                              Article 87(1) of the EC Treaty in that the steps taken by
                                                                              the public creditors in the legal proceedings for suspension
The pleas in law and main arguments are the same as those in                  of payments cannot be considered to constitute State aid
Case T-141/99 Vela s.r.l. v Commission.                                       because they do not meet the requirement of specificity
                                                                              nor do they comply with the rules of Spanish competition
(1) Council Regulation (EEC) No 4256/88 of 19 December 1988                   law;
    laying down provisions for implementing Regulation (EEC) No
    2052/88 as regards the EAGGF Guidance Section (OJ L 337 of           — infringement of Article 87(1) of the EC Treaty in that the
    24.12.1994, p. 11).                                                       Commission considered the increase in capital by way of
                                                                              credit set-off on the part of the applicant to constitute
                                                                              State aid;
                                                                         — manifest error in the findings of fact and infringement of
                                                                              Article 87(3)(c) of the EC Treaty and of the Community
                                                                              rules applicable in the area of State aid for the restructuring
Action brought on 24 June 1999 by Hijos de Andrés                             and rescue of companies, in that the rescue aid granted to
Molina S.A. (in liquidation) against the Commission of the                    the applicant between May and December 1995 was not
                    European Communities                                      considered to be compatible with the common market.
                         (Case T-152/99)                                 The applicant company also alleges that the contested decision
                                                                         fails to take into account that the restructuring plan drawn up
                        (1999/C 246/85)                                  by it fulfils the requirements of compatibility with the common
                                                                         market since that plan clearly reduced the applicant’s pro-
                                                                         duction capacity, re-established its viability and succeeded in
                                                                         protecting the interests of third parties in the procedure which
                  (Language of the case: Spanish )
                                                                         led to its reprivatisation.
An action against the Commission of the European Communi-
ties was brought before the Court of First Instance of the               Further, the applicant is also of the view that the decision fails
European Communities on 24 June 1999 by Hijos de Andrés                  to take into account the principle that reasons must be given
Molina S.A., whose registered office is in Seville, Spain,               for measures adopted. In particular, it claims in that regard
represented by Luis Manuel Olivencia Brugger and José Luis               that the decision simply precludes the possible application of
Ballester Garcı́a-Izquierdo, with an address for service in              Article 87(3)(a) without complying with the corresponding
Luxembourg at the Chambers of Guy Arendt, 7 Val Ste. Croix,              obligations to provide reasons which arise by virtue of the
B.P. 522.                                                                discretion enjoyed.
The applicant claims that the Court should:                              Finally, the applicant company challenges whether the require-
                                                                         ment that intra-Community trade be affected applies in this
— annul the Commission’s decision of 3 February 1999 on                  case.
     the State aid granted by the Spanish Government to Hijos
     de Andrés Molina S.A.;
— order that the Commission pay the costs.