While Turkey's International Arbitration Law No. 4686 has
long permitted Turkish courts to grant interim relief before or
during arbitral proceedings, the law was silent as to whether this
was permitted once a final award had been rendered by the arbitral
tribunal but before it became enforceable by Turkish execution
A Turkish Court of Appeal has now made clear that courts can
grant interim relief at any time before, during or after arbitral
proceedings, before an award becomes enforceable by Turkish
Before an arbitral award had been finalized for execution, the
prevailing party applied to a Turkish court for an interim
attachment (ihtiyati haciz). The trial court dismissed the request,
concluding that an arbitral award cannot be enforced by execution
offices in Turkey prior to expiry of the period during which an
award may be challenged or, where such a challenge has been made,
prior to a final court decision upholding the award, thereby making
it enforceable by Turkish execution offices.
The Court of Appeal1 overruled the lower court's
decision, holding that the granting of an interim attachment and
the enforcement of an arbitral award are two separate issues. The
court explained that as a matter of law there is no obstacle to
granting an interim attachment prior to a final court decision
ordering enforcement of an arbitral award. In support of its
reasoning, the court referred to Article 6 of the law, stating that
if interim attachments can be requested before or during arbitral
proceedings, there is no reason to bar requests once an award has
According to Article 257 of Execution and Bankruptcy Law No.
2004, an interim attachment on a debtor's assets can be granted
with respect to unsecured receivables that are due and payable, or
for receivables not yet due and payable where the debtor has no
specific place of residence or has commenced actions to conceal or
dissipate assets with the aim of avoiding payment. An interim
attachment has the effect of freezing the debtors' assets to
ensure the satisfaction of the debt.
The decision is important in that it clarifies a party's
entitlement to seek an interim attachment before a final
enforcement decision is rendered. The conditions required for
interim attachments must, however, be shown to exist.
Although as a general rule Turkish court judgments are not
binding on other cases, they are regarded as persuasive authority
and we expect other courts to follow suit. Parties should therefore
consider the advantages of seeking an interim attachment from
Turkish courts at all stages — before, during and after
arbitral proceedings — to ensure the swift and efficient
collection of the amounts due.
1 6th Civil Division of the Court of Appeal, File No.
2014/3906, Decision No. 2014/4941, April 14, 2014.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In a judgment harking back to the principles in Donoghue v Stevenson, the Court of Appeal has upheld the High Court's decision that the manufacturer of a defective product installed to prevent fire was not liable...
A year-long arbitration pilot scheme to provide a cost-effective, straightforward and quick method of solving legal disputes between claimants and participating members of the press commenced on the 26th July 2016.
Welcome to the Summer edition of Scots Law In Practice. The first three cases contain a common thread – the pursuer in each had a valid claim on the face of things, but in each one, faced legal difficulties in obtaining a remedy.
Each year businesses around the world face a growing number of risks that could potentially jeopardize hundreds of billions of euros.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).