The EU's top court ruled on Thursday that Hungary had failed to fulfil its obligations under the bloc's law by "unduly hindering" people from seeking asylum.

Hungary under its nationalist Prime Minister Viktor Orban in 2020 introduced procedures, requiring non-EU nationals to apply at its embassies outside the bloc to be allowed to travel to the central European country to seek asylum.

This led to the European Commission (EC) to begin infringement proceedings against Hungary for the "incorrect application of EU asylum legislation".

The Court of Justice of the European Union (ECJ) said in its ruling that the procedure deprived those concerned "of the effective enjoyment of their right to seek asylum from Hungary".

"Hungary has unduly hindered the possibility of making an asylum application... Hungary has failed to fulfil its obligations under EU law," the court said.

It added the procedure "constitutes a manifestly disproportionate interference with the right of persons seeking international protection".

Hungary's move followed the outbreak of the COVID-19 pandemic, but the court said it considers that "the restriction laid down may not be justified by the objective of public health protection".

Hungary must comply with the judgment "without delay", or face possible further action by the commission seeking financial penalties, according to the court.

"We regret that the ECJ has made this decision but also that the EC and ECJ are forcing us to change these rules," Orban's chief of staff Gergely Gulyas told reporters.

He added Hungary had made the rules "to make it clear at the latest at the border if someone wants to enter the EU area, the Schengen zone, they have to already be bringing refugee status with them".

Budapest and Brussels have frequently clashed over topics including the perceived weakening of the rule of law and Orban's tough line against migration.

Since 2015, Orban's government has erected heavily guarded fences along its borders with Serbia and Croatia, and refused to accept EU mandatory relocation quotas of refugees from elsewhere in the bloc.

In 2020, the ECJ ruled that so-called border "transit zone" camps for asylum-seekers in Hungary were "unlawful detention", leading Budapest to close the camps.

Last week, Orban slammed the EU's latest plan to share hosting of asylum seekers more equitably, comparing it to wartime deportations.