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Challenging and Enforcing Arbitration Awards: Türkiye - Part 3

Applying for interim measures under a foreign arbitral award before requesting recognition is controversial, and there are conflicting precedents. Recent precedents favour those applications.


Challenging and Enforcing Arbitration Awards: Türkiye - Part 2

While domestic arbitral awards are directly enforceable under the CPL, arbitral awards within the scope of the IAL (where the seat is in Turkey and the matter has a foreign element) are enforced by obtaining a certificate of enforceability from the competent civil court of first instance.


Challenging and Enforcing Arbitration Awards: Türkiye - Part 1

Article 14(A) of the International Arbitration Law (IAL) provides that an award must include: — the names, surnames, titles and addresses of the parties, their representatives and lawyers; — the legal grounds on which the award is based and, if there is a claim for compensation, the amount of compensation; — the place of arbitration and the date of the award;


The Guide to Challenging and Enforcing Arbitration Awards in Turkey - Third Edition / Part 3

Procedure for interim measures against assets in Turkey: A creditor seeking enforcement can obtain a provisional attachment order by establishing that receivables are matured and unsecured, and there is a present danger that the debtor lacks sufficient assets. The attachment proceedings must be conducted before the competent court at the debtor's residence. Immovable, movable, and intangible property can be attached through the provisions of the Execution and Bankruptcy Law. Bank accounts held by banks in Turkey can be attached, while those located abroad are not subject to attachment. Sovereign immunity may apply to assets owned by foreign states, with exceptions for assets used for commercial purposes. Waiver of immunity is possible through an agreement. Piercing the corporate veil is exceptional, requiring evidence of fraud or misconduct.


The Guide to Challenging and Enforcing Arbitration Awards in Turkey - Third Edition / Part 2

To have jurisdiction over an application for recognition and enforcement, the court must be located where the parties agreed or where the defendant resides. If the defendant is not in Turkey, jurisdiction lies where the defendant's attachable assets are located. The applicant must prove the assets are within the court's jurisdiction. The application should include the original or certified copies of the arbitration agreement and arbitral award, along with certified translations. The proceedings are adversarial, with a written phase followed by an oral phase. The court's decision can be appealed. The court can adjourn proceedings if annulment proceedings are ongoing. Assets that can be attached include movable and immovable assets, but certain exemptions apply. Interim measures can be obtained before or during arbitration proceedings.


The Guide to Challenging and Enforcing Arbitration Awards in Turkey - Third Edition / Part 1

Under Turkish law, an award must include specific information such as the names, addresses, and representatives of the parties involved, the legal basis of the award, the place and date of arbitration, and a notice regarding the possibility of challenging the award. Parties can request corrections or interpretations of an award within a certain time frame. The only recourse available is to file an action to set aside the award. Setting-aside actions must be filed within 30 days of the award's service date. Turkish courts have jurisdiction over setting-aside and recognition/enforcement proceedings.

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