Victory at the Supreme Administrative Court: proceedings reopened due to unlawfully applied sanction

On May 9, 2025, the Supreme Administrative Court of Lithuania granted our client’s ABC Projektai request to reopen proceedings, thereby acknowledging the legal merit of our team’s arguments.

The court held that in the previously adopted ruling, by which the revocation of the payment institution’s license was changed to a temporary suspension of the license’s validity, such a modification of the sanction imposed by a public administrative body was not substantiated with reasoning, and no legal basis allowing such judicial conduct was identified.

The Supreme Administrative Court of Lithuania acknowledged that the ruling lacked arguments explaining how, under the applicable legal acts, a sanction of this nature – suspension of a license for more than four years – could have been applied. Therefore, the panel of judges reopened the case.

This case is significant not only for our client but also for the entire financial market – it sets a precedent in which the court will have to fundamentally assess whether the strictest sanction applied by a public administrative authority supervising financial institutions (revocation of a license), when found to have been imposed unlawfully, can be replaced by a temporary suspension of the license for the same duration.