The logo of the Council of State. (Credit: NNA)
BEIRUT — Following an appeal by the Union of Building Owners, the Council of State decided on Thursday to suspend a decision made on Dec. 26, 2023, by the outgoing government to delay the adoption of a law on the liberalization of commercial rents.
The law had been voted on by the Chamber of Deputies in mid-December and approved by the Council of Ministers on Dec. 19. Then in January, at the request of caretaker Prime Minister Najib Mikati, a reversal was made, deciding to refer the law to Parliament instead.
The legislative text sparked opposition from numerous shopkeepers who believed they would be at a disadvantage should it be finalized and published in the Official Gazette. On the other hand, many landlords have been waiting for years for an amendment to the current law, which prevents them from adjusting their old rents, sometimes dating back more than 70 years, in the context of a serious economic and financial crisis and a sharp depreciation of the national currency.
The appeal by the union of owners is based in particular on the question of whether an outgoing government can use the right to refer to Parliament that the Constitution grants to the President of the Republic — a role that has been empty since Oct. 2022.
According to a judicial source, the plaintiffs also criticize the right of the Council of Ministers to reconsider its decision to publish the law in the Official Gazette.
The suspension of a decision by the Council of State does not mean that it is annulled. However, this procedure is generally used when the high authority judges that the contested act causes "enormous harm" and considers the grounds of the appeal to be sufficiently "serious."