Judgment of the Court (Tenth Chamber) of 14 July 2022.SGI Studio Galli Ingegneria Srl v European Commission.Appeal – Arbitration clause – Seventh Framework Programme for research, technological development and demonstration activities (2007-2013) – Grant agreement – The MARSOL Project – Eligible costs – European Anti-Fraud Office (OLAF) investigation report finding certain expenses incurred to be ineligible – Repayment of sums paid – Right to access OLAF’s file – Right to be heard – Burden of proof – Distortion of the facts – Probative value – Principle of proportionality – Unjust enrichment.Case C-371/21 P.

Judgment of the Court (Tenth Chamber) of 14 July 2022 –SGI Studio Galli Ingegneria v Commission

(Case C‑371/21 P) ( 1 )

(Appeal – Arbitration clause – Seventh Framework Programme for research, technological development and demonstration activities (2007-2013) – Grant agreement – The MARSOL Project – Eligible costs – European Anti-Fraud Office (OLAF) investigation report finding certain expenses incurred to be ineligible – Repayment of sums paid – Right to access OLAF’s file – Right to be heard – Burden of proof – Distortion of the facts – Probative value – Principle of proportionality – Unjust enrichment)

1. Appeal – Grounds – Incorrect assessment of the facts and evidence – Inadmissibility – Review by the Court of the assessment of the facts and evidence – Possible only where the facts or evidence have been distorted – Requirement that the distortion be obvious from the documents in the file – Ground alleging a divergence of interpretation of a document – Inadmissibility

(Art. 256(1) TFEU; Statute of the Court of Justice, Art. 58, first para.)

(see paras 37, 38, 50, 55, 56, 61)

2. Judicial proceedings – Proof – Probative value – Discretion of the General Court

(Rules of Procedure of the General Court, Art. 85)

(see paras 66, 69)

3. Judicial proceedings – General Court seised under an arbitration clause – Contracts concluded under a specific research, technological development and demonstration programme – Obligation on the Commission to observe the principles governing contracts – Refusal by the Commission to suspend the recovery procedure – No infringement of the principle of good faith and of the right to be heard – No infringement of the right to good administration, of the right of access to documents and of the rights of the defence

(Art. 272 TFEU; Charter of Fundamental Rights of the European Union, Art. 41)

(see paras 79, 82, 85)

4. Appeal – Grounds – Specific criticism of a point of the General Court’s reasoning necessary

(Art. 256 TFEU; Statute of the Court of Justice, Art. 58, first para.; Rules of Procedure of the Court of Justice, Arts 168(1)(d) and 169(2))

(see paras 86, 92)

5. EU budget – EU financial assistance – Obligation on the beneficiary to comply with the conditions for grant of the assistance – Financing covering only expenses actually incurred – No demonstration that the costs have actually been incurred – Ineligible costs – The MARSOL Project – Request by the Commission for recovery of an amount which corresponds to non-eligible costs under the grant agreement – No infringement of the principles of proportionality, fairness and good faith

(Art. 317 TFEU)

(see paras 105-107)

6. Appeal – Grounds – Inadequate or contradictory grounds – Admissibility – Scope of the obligation to state reasons

(Art. 256 TFEU; Statute of the Court of Justice, Art. 58, first para.)

(see paras 113-115)

7. EU law – Principles – Principle of prohibition of unjust enrichment of the Union – Concept

(see paras 116-118)

Operative part

The Court:

1. Dismisses the action;

2. Orders SGI Studio Galli Ingegneria Srl to pay the costs.

( 1 ) OJ C 310, 2.8.2021.