Lex Mundi Global Arbitration Institutions Guide |
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Turkey |
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| (Europe) Firm Pekin Attorney Partnership Updated 20 Nov 2018 | |
| Name of Arbitral Institution; with abbreviation, if any. | In Turkey, there are several Arbitral Institutions. The main arbitration organizations are the: • Istanbul Arbitration Centre (“ISTAC”). • Turkish Union of Chambers and Commodity Exchanges Court of Arbitration. • Istanbul Chamber of Commerce Arbitration Institution. However, ISTAC which was established by the Istanbul Arbitration Centre Law (Law No.6570) (published in the Official Gazette dated October 29, 2014, and numbered 29190) is an independent, neutral and impartial institution providing efficient dispute resolution services for both international and domestic parties. Therefore, considering that ISTAC the founding purpose of which is to be an international center for the resolution of commercial disputes between European, Asian and Middle Eastern countries is the most popular Arbitrational Institution in Turkey, our explanations made in this Guide are only related to ISTAC. |
| Where is the seat of the Arbitral Institution? | Istanbul, Turkey |
| Is there an umbrella organization for the Arbitral Institution? | No. ISTAC is an independent institution and there is no umbrella organization over ISTAC. |
| How is the Arbitral Institution structured? | The ISTAC is comprised of seven separate bodies: • The General Assembly • The Board of Directors • The Auditors • The Board of Consultants • The National Board • The International Board • The Secretariat. |
| Is there a compulsory list of arbitrators that parties are required to choose from? | No |
| Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | Yes. However, if it has not been chosen by the parties, the place of arbitration shall be Istanbul. |
| What is the amount of the registration fee? | TRY 300 (Apprx. USD 55)* *Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of registration fee. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change. |
| What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | Apprx. USD 37,261,00. (including the registration fee, administrative costs, and the sole arbitrator fee) *Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of average cost. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change. |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | Apprx. USD 162.635,00. (including the registration fee, administrative costs, and the arbitrator tribunal fee) *Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of average cost. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change. |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | Apprx. USD 269.074,00. (including the registration fee, administrative costs, and the arbitrator tribunal fee) *Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of average cost. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change. |
| Who pays advances on costs? What happens in the event of default? | Firstly, the party requesting for the arbitration shall deposit the registration fee. Such registration fee is non-refundable and shall be credited to the relevant party’s portion of the advance on costs. After receipt of the Request for Arbitration, the Secretariat may request the claimant to deposit an amount as an advance, intended to cover the costs of the arbitration until the terms of reference have been drawn up. This advance deposited by the claimant shall be considered as a partial payment of the advance on costs to be fixed by the Board and then shall be deducted from such amount. Afterward, at the earliest possible time, the Board shall fix the amount of advance on costs to cover the fee(s) and expenses of the arbitrator(s) and the Istanbul Arbitration Centre administrative costs for the claims, which have been referred to by the parties. This amount shall be paid in equal shares by the parties. When an advance on costs fixed has not been paid with, after consulting with the Sole Arbitrator or the Arbitral Tribunal, the Secretariat may suspend the proceedings. After the notification of suspension of the proceedings, the related party or parties will be granted 15 days for the deposit of the advance on costs. Upon the request of the related party or parties, the Secretariat may grant additional time if it deems appropriate. If the advance on costs has not been deposited on time, the Sole Arbitrator or Arbitral Tribunal will be informed of the failure to deposit, and the Sole Arbitrator or Arbitral Tribunal terminates the proceedings. In this case, the relevant party may resubmit the claim or claims in a later arbitration proceeding. |
| Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | Unless otherwise agreed by the Parties, the Sole Arbitrator or Arbitral Tribunal shall immediately draw up the terms of reference following the submission of the Request for Arbitration and Answer to Request for Arbitration. The terms of reference shall be signed by the parties and the Sole Arbitrator or Arbitral Tribunal. The Sole Arbitrator or Arbitral Tribunal shall submit the signed terms of reference to the Secretariat within 30 days of the date on which the file was transmitted to it. |
| Which languages can be used for communication with the Arbitral Institution? | Turkish, English. |
| Who is the main point of contact for the parties within the Arbitral Institution? | The Secretariat. |
| Are there restrictions on the language that the arbitration may be conducted in? | No. The parties freely determine the language of the arbitration. In the absence of such agreement between the Parties, the Sole Arbitrator or Arbitral Tribunal shall determine the language of the arbitration considering all circumstances and conditions. The language of the arbitration may be one or more languages. Unless otherwise agreed, documents in languages other than the language of the arbitration shall be submitted together with a translation. |
| Who appoints substitute arbitrators? | The Arbitration Board. |
| Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | "Upon the request of any party, the Board may consolidate two or more arbitrations that are pending under the ISTAC Rules into a single arbitration, provided that the following conditions are satisfied: a) If the parties to the arbitrations which are requested to be consolidated are different, and all parties have agreed to the consolidation; or b) If the parties to the arbitrations which are requested to be consolidated are the same, and i) The parties have agreed to consolidation; or ii) All of the claims in the arbitrations are based on the same arbitration agreement; or iii) If the claims in the arbitrations are based on more than one arbitration agreement, the disputes in the arbitrations arise in connection with the same legal relationship and the arbitration agreements are compatible |
| Are oral hearings compulsory? | No. Upon the request of one of the parties or on its own initiative where it deems necessary, the Sole Arbitrator or Arbitral Tribunal may decide to hold a hearing in order to listen to the parties, witnesses or experts. After consulting with the parties, the Sole Arbitrator or Arbitral Tribunal may decide solely on the basis of documents without holding a hearing. |
| What are common evidence-taking practices? | The Sole Arbitrator or Arbitral Tribunal shall consult all means it deems to be appropriate in order to establish the facts of the case. In this regard, the Sole Arbitrator or Arbitral Tribunal may hear the parties, witnesses and others upon the request of one of the parties or on its own initiative. On the other hand, the Sole Arbitrator or Arbitral Tribunal may hear the experts appointed by the parties, as well as, after consulting with the parties, if it deems necessary, may appoint an expert and define the scope of duty. At the hearing, the Sole Arbitrator or Arbitral Tribunal or the parties may directly ask questions to any such expert(s). The Sole Arbitrator or Arbitral Tribunal, after consulting with the parties, may decide to conduct a site visit. During the course of the proceedings, the Sole Arbitrator or Arbitral Tribunal may request the parties to submit any additional information and documents. |
| What is the average duration of arbitration proceedings? | 6 months |
| What is the timeframe for rendering the award? | The Sole Arbitrator or Arbitral Tribunal shall render the award on the merits of the dispute, within 6 months from the date upon which the completion of the signatures on the terms of reference or, the date of notification to the Sole Arbitrator or Arbitral Tribunal by the Secretariat of the approval of the terms of reference. |
| Are extensions to time limits permissible? | Yes. The time limit for the award may be extended, upon the agreement of the parties; if the parties fail to agree, the Board may extend the time limit upon the Sole Arbitrator or Arbitral Tribunal’s request or in cases where it deems necessary on its own initiative. |
| Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | Yes. Unless otherwise agreed by the parties, the Sole Arbitrator or Arbitral Tribunal, at the request of a party, may grant an interim measure it deems appropriate. However, the arbitral tribunal cannot render a preliminary injunction or a preliminary attachment order which is enforceable by national execution offices, and interim measures relating to third parties would require the involvement of national courts. On the other hand, if a party does not comply with the decision of the arbitral tribunal, the party which is seeking the interim measure may apply to national courts in order to issue an interim measure in accordance with the Turkish Civil Law and Execution and Bankruptcy Law. It should also be noted that applying to national courts for an interim measure shall not waive the arbitration agreement or shall not affect the powers of the arbitral tribunal. National courts may also assist the arbitration process by ordering injunctions. |
| Do the institutional rules provide for an emergency arbitrator? | Yes |
| Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | Yes. The Sole Arbitrator renders the decision on the merits of the dispute within 3 months from the transmission of the file to the Sole Arbitrator. On the other hand, The Sole Arbitrator shall render the award within, at the latest, 1 month of either, the submission of the last statement or the date of the last hearing, whichever occurs later. |
| Are arbitral awards submitted for scrutiny? If so, to whom? | Within 30 days of the notification of the award, one of the parties may make an application to the Secretariat with a request for the interpretation of the award or the correction of any computational and typographical errors in the award. In addition, within 30 days of the notification of the award, each of the parties may make an application to the Secretariat with a request for an additional award concerning reliefs sought in the arbitration proceedings but omitted from the award. |
| Do costs necessarily follow the event? | The costs of arbitration shall be fixed in the arbitral award along with the decision on which of the parties shall bear the costs or in what proportions the costs shall be borne by the parties. |
| Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes. The reasons for annulment regulated under Turkish Law in principle correspond to the reasons for denial of enforcement in accordance with the New York Convention. |
| Link to institutional rules | http://istac.org.tr/wp-content/uploads/2016/02/ISTAC-ARBITRATION-RULES.pdf |
| Link to model clause | https://istac.org.tr/en/dispute-resolution/arbitration/model-arbitration-clause/ |
Lex Mundi Global Arbitration Institutions Guide
In Turkey, there are several Arbitral Institutions. The main arbitration organizations are the:
• Istanbul Arbitration Centre (“ISTAC”).
• Turkish Union of Chambers and Commodity Exchanges Court of Arbitration.
• Istanbul Chamber of Commerce Arbitration Institution.
However, ISTAC which was established by the Istanbul Arbitration Centre Law (Law No.6570) (published in the Official Gazette dated October 29, 2014, and numbered 29190) is an independent, neutral and impartial institution providing efficient dispute resolution services for both international and domestic parties.
Therefore, considering that ISTAC the founding purpose of which is to be an international center for the resolution of commercial disputes between European, Asian and Middle Eastern countries is the most popular Arbitrational Institution in Turkey, our explanations made in this Guide are only related to ISTAC.
Istanbul, Turkey
No. ISTAC is an independent institution and there is no umbrella organization over ISTAC.
The ISTAC is comprised of seven separate bodies:
• The General Assembly
• The Board of Directors
• The Auditors
• The Board of Consultants
• The National Board
• The International Board
• The Secretariat.
No
Yes. However, if it has not been chosen by the parties, the place of arbitration shall be Istanbul.
TRY 300 (Apprx. USD 55)*
*Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of registration fee. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change.
Apprx. USD 37,261,00. (including the registration fee, administrative costs, and the sole arbitrator fee)
*Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of average cost. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change.
Apprx. USD 162.635,00. (including the registration fee, administrative costs, and the arbitrator tribunal fee)
*Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of average cost. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change.
Apprx. USD 269.074,00. (including the registration fee, administrative costs, and the arbitrator tribunal fee)
*Please note that the exchange rate for USD to TRY is considered as 5,35 in the calculation of average cost. Considering that the exchange rate on the date of application for an arbitration may change, the amount given in USD is subject to change.
Firstly, the party requesting for the arbitration shall deposit the registration fee. Such registration fee is non-refundable and shall be credited to the relevant party’s portion of the advance on costs. After receipt of the Request for Arbitration, the Secretariat may request the claimant to deposit an amount as an advance, intended to cover the costs of the arbitration until the terms of reference have been drawn up. This advance deposited by the claimant shall be considered as a partial payment of the advance on costs to be fixed by the Board and then shall be deducted from such amount.
Afterward, at the earliest possible time, the Board shall fix the amount of advance on costs to cover the fee(s) and expenses of the arbitrator(s) and the Istanbul Arbitration Centre administrative costs for the claims, which have been referred to by the parties. This amount shall be paid in equal shares by the parties.
When an advance on costs fixed has not been paid with, after consulting with the Sole Arbitrator or the Arbitral Tribunal, the Secretariat may suspend the proceedings. After the notification of suspension of the proceedings, the related party or parties will be granted 15 days for the deposit of the advance on costs. Upon the request of the related party or parties, the Secretariat may grant additional time if it deems appropriate. If the advance on costs has not been deposited on time, the Sole Arbitrator or Arbitral Tribunal will be informed of the failure to deposit, and the Sole Arbitrator or Arbitral Tribunal terminates the proceedings. In this case, the relevant party may resubmit the claim or claims in a later arbitration proceeding.
Unless otherwise agreed by the Parties, the Sole Arbitrator or Arbitral Tribunal shall immediately draw up the terms of reference following the submission of the Request for Arbitration and Answer to Request for Arbitration.
The terms of reference shall be signed by the parties and the Sole Arbitrator or Arbitral Tribunal. The Sole Arbitrator or Arbitral Tribunal shall submit the signed terms of reference to the Secretariat within 30 days of the date on which the file was transmitted to it.
Turkish, English.
The Secretariat.
No. The parties freely determine the language of the arbitration. In the absence of such agreement between the Parties, the Sole Arbitrator or Arbitral Tribunal shall determine the language of the arbitration considering all circumstances and conditions. The language of the arbitration may be one or more languages.
Unless otherwise agreed, documents in languages other than the language of the arbitration shall be submitted together with a translation.
The Arbitration Board.
"Upon the request of any party, the Board may consolidate two or more arbitrations that are pending under the ISTAC Rules into a single arbitration, provided that the following conditions are satisfied:
a) If the parties to the arbitrations which are requested to be consolidated are different, and all parties have agreed to the consolidation; or
b) If the parties to the arbitrations which are requested to be consolidated are the same, and
i) The parties have agreed to consolidation; or
ii) All of the claims in the arbitrations are based on the same arbitration agreement; or
iii) If the claims in the arbitrations are based on more than one arbitration agreement, the disputes in the arbitrations arise in connection with the same legal relationship and the arbitration agreements are compatible
No. Upon the request of one of the parties or on its own initiative where it deems necessary, the Sole Arbitrator or Arbitral Tribunal may decide to hold a hearing in order to listen to the parties, witnesses or experts. After consulting with the parties, the Sole Arbitrator or Arbitral Tribunal may decide solely on the basis of documents without holding a hearing.
The Sole Arbitrator or Arbitral Tribunal shall consult all means it deems to be appropriate in order to establish the facts of the case.
In this regard, the Sole Arbitrator or Arbitral Tribunal may hear the parties, witnesses and others upon the request of one of the parties or on its own initiative.
On the other hand, the Sole Arbitrator or Arbitral Tribunal may hear the experts appointed by the parties, as well as, after consulting with the parties, if it deems necessary, may appoint an expert and define the scope of duty. At the hearing, the Sole Arbitrator or Arbitral Tribunal or the parties may directly ask questions to any such expert(s).
The Sole Arbitrator or Arbitral Tribunal, after consulting with the parties, may decide to conduct a site visit.
During the course of the proceedings, the Sole Arbitrator or Arbitral Tribunal may request the parties to submit any additional information and documents.
6 months
The Sole Arbitrator or Arbitral Tribunal shall render the award on the merits of the dispute, within 6 months from the date upon which the completion of the signatures on the terms of reference or, the date of notification to the Sole Arbitrator or Arbitral Tribunal by the Secretariat of the approval of the terms of reference.
Yes. The time limit for the award may be extended, upon the agreement of the parties; if the parties fail to agree, the Board may extend the time limit upon the Sole Arbitrator or Arbitral Tribunal’s request or in cases where it deems necessary on its own initiative.
Yes. Unless otherwise agreed by the parties, the Sole Arbitrator or Arbitral Tribunal, at the request of a party, may grant an interim measure it deems appropriate. However, the arbitral tribunal cannot render a preliminary injunction or a preliminary attachment order which is enforceable by national execution offices, and interim measures relating to third parties would require the involvement of national courts.
On the other hand, if a party does not comply with the decision of the arbitral tribunal, the party which is seeking the interim measure may apply to national courts in order to issue an interim measure in accordance with the Turkish Civil Law and Execution and Bankruptcy Law. It should also be noted that applying to national courts for an interim measure shall not waive the arbitration agreement or shall not affect the powers of the arbitral tribunal. National courts may also assist the arbitration process by ordering injunctions.
Yes
Yes. The Sole Arbitrator renders the decision on the merits of the dispute within 3 months from the transmission of the file to the Sole Arbitrator. On the other hand, The Sole Arbitrator shall render the award within, at the latest, 1 month of either, the submission of the last statement or the date of the last hearing, whichever occurs later.
Within 30 days of the notification of the award, one of the parties may make an application to the Secretariat with a request for the interpretation of the award or the correction of any computational and typographical errors in the award.
In addition, within 30 days of the notification of the award, each of the parties may make an application to the Secretariat with a request for an additional award concerning reliefs sought in the arbitration proceedings but omitted from the award.
The costs of arbitration shall be fixed in the arbitral award along with the decision on which of the parties shall bear the costs or in what proportions the costs shall be borne by the parties.
Yes. The reasons for annulment regulated under Turkish Law in principle correspond to the reasons for denial of enforcement in accordance with the New York Convention.