The suspension of the execution of an administrative act represents a particularly important legal instrument of interim protection, allowing a party in an administrative proceeding, under certain circumstances, to halt the enforcement of an administrative authority’s decision until the conclusion of judicial proceedings. This matter is regulated by the Law on Administrative Disputes, with the Administrative Court playing a central role in deciding on requests for suspension of execution.
As a general rule, filing a claim in an administrative dispute does not suspend the execution of the challenged administrative act. However, the law provides that the court, at the request of the claimant, may suspend the execution of a final administrative act that substantively resolves the administrative matter if enforcing the act could cause damage that would be difficult to compensate. At the same time, the suspension must not be contrary to the public interest, nor cause greater or irreparable harm to the opposing party or other affected persons. The law stipulates that the court decides on the request for suspension no later than five days from receipt of the request, making this procedure an effective tool for urgent protection of the party’s rights.
In practice, a request for suspension may be submitted in any administrative matter, though it holds particular importance in cases involving the collection of public revenues, such as taxes and fees for the use of public resources, where immediate enforcement can have significant consequences on a business’s operations and financial standing.
Key Considerations When Filing a Request
Generally, the request is filed following the issuance of a second-instance administrative decision. Exceptionally, the law allows a request to be submitted after a first-instance decision when the appeal does not have suspensive effect and the appeal procedure has not yet been concluded. In such cases, a party in an administrative proceeding may request the court to suspend execution even while the appeal is pending, provided evidence is submitted that the appeal has indeed been filed. This is crucial because if no appeal is filed, the decision becomes not only final in administrative proceedings but also legally binding, meaning the court cannot intervene. Establishing this circumstance clearly is essential.
Moreover, a request to suspend the execution of a final administrative act can be submitted until enforcement measures have been carried out. While this condition is not explicitly set by law, it follows from the very nature and purpose of the suspension mechanism.
For the court to grant the request, the claimant must demonstrate that the statutory conditions are met and provide supporting evidence confirming the risk of harm. In practice, these legal requirements are often mentioned only superficially, without proper argumentation or supporting documentation.
The court carefully considers the specific circumstances of the case, such as the financial consequences of enforcement measures. For example, the collection of a significant tax liability may lead to bank account freezes, realization of securities, or even trigger insolvency proceedings. Similarly, enforcement measures in certain cases could result in the dismissal of a substantial number of employees, thereby threatening their livelihoods and that of their families. These circumstances must be substantiated with appropriate evidence, including financial statements (including interim statements for the current year), valid bank guarantees subject to execution, loan and credit agreements, and lists of employees with the number of dependents, among others.
Earlier practice of the Administrative Court suggested that suspending enforcement in tax matters would be contrary to the public interest, as taxes constitute state revenue. However, this narrow interpretation has been revisited and abandoned. The court now takes a broader view, assessing the overall consequences of enforcement for the party, while still considering public interest and the proportionality of potential harm. This approach ensures effective application of the interim protection mechanism and provides parties with a real opportunity to safeguard their rights during ongoing proceedings.
Conclusion
Suspension of the execution of an administrative act is an efficient and timely tool for protecting the rights of a party in administrative proceedings, striking a balance between individual interests and public interest. Its application requires a clear demonstration of the risk of irreparable harm, careful documentation of the relevant circumstances, and timely submission of the request. It is therefore essential to analyze the specific circumstances of each case and develop a legal strategy that maximizes the likelihood of obtaining a favorable decision on the suspension request.
This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.
Authors:
Ivana Ruzicic, Managing Partner,
ivana.ruzicic@prlegal.rs
Milan Petrovic, Senior Partner
milan.petrovic@prlegal.rs