Facts
The T. Foundation obtained a subsidy promise from the Federal Social Insurance Office (OFAS) for the construction of an establishment for the elderly. The decision of 14 April 1988 set the provisional amount of the subsidy at 885,000 francs, on the condition that the construction work begin before 1 July 1990.
After noting that the work had not started within the deadline, OFAS revoked the subsidy promise by decision of 18 October 1990. The T. Foundation then appealed against this decision.
Considerations
The Federal Tribunal examined the validity of the revocation decision in light of the general principles applicable in the absence of specific legal rules on the revocation of administrative decisions. It considered that the revocation was justified, as the subsidy promise was subject to a potestative and resolutory condition expressly provided for in the initial decision.
However, the Tribunal considered that the sanction of revocation was disproportionate to the circumstances. Although the T. Foundation had delayed the start of the work and the interruption of the construction site for two…