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Domestic Arbitration Regulated in the Turkish Code of Civil Procedure

Domestic Arbitration Regulated in the Turkish Code of Civil Procedure



Sayfa Sayısı
:  
212
Kitap Ölçüleri
:  
13x19 cm
Basım Yılı
:  
2004
ISBN NO
:  
9757680427

86,00 TL









PREFACE

According to the provision of Art. 6 of the Constitutlon of 1982 of the Republic of Turkey, the sovereignty belongs to Turkish Nation without any condition and any restriction. The Turkish Nation enjoys its sovereignty through its competent organs in accordance with the principles establlshed by the Constitution. Pursuant to the provision of Art. 9 of the Constitution, judicial power is used via independent Courts on behalf of Turkish Nation. That is why, in principle, a person has only recourse to the Courts in order to establish his rights.

Yet, there is an exception of this main principle. This exception is foreseen as private jurisdicüon in some Turkish legislation. For example, this private jurisdiction is provided in Turkish Code of Civil Procedure. Thus, this jurisdiction handled before arbitrator(s) is called arbitration. in other words, we may qualify the arbitration as a technique purporting to settle the disputes regarding the contractual relations between two or more persons by one or more individual(s) -an arbitrator or arbitrators- authorized by a private contract without a Court participation and establishing an award pursuant to the contract.

The subject of our work hereof is domestic arbitration regulated in and between the provisions of Articles 516-536 of the Turkish Code of Civil Procedure no. 818 enacted on May 8, 1926, put in force on October 4, 1926 and stili in application. These provisions existed in the past in and between «Articles 471 to 491 of Code de Procedure Çivile du Canton de Neuchâtel\\\" dated April 7 1925, in Switzerland and which were translated from the French version into Turkish except some minör provisions thereof.

We are aware that ali the above mentioned provisions have been abolished from Neuchâtel Code of Civil Procedure, the fact is that those provisions have been abrogated in the Neuchâtel Canton because this Canton adhered to «Concordat

Suisse sar l\\\′Arbürage» on November 24, 1970. For the benefit of the readers, we found it useful to submit the translation of these abolished provisions we made from the French version into English, these provisions are stili in force in Turkey without any amendment since 1926.

Thus, the same provisions have endured for eighty years in Turkey. However, these practices and the precedents of the Court of Cassation thereof, have not been explained sufficiently in European countries in their own languages. That is why we are often questioned by the European citizens if the provisions of sharia are applicable in Turkey, even just before the expected deliberation\\\′s date from European Union at the end of December 2004. Turkey is a Moslem country but is not far from the European countries\\\′ Law. For European countries, it is crucial to understand, indeed, that Continental laws are in application in Turkey as of October 29, 1923 which is the creation date of the secular Republic of Modem Turkey.

in this respect, we may state that:

Turkish Penal Code is adopted from Italian Penal Code and in force since 1926.
- Turkish Code of Civil Procedure is translated from
Code of Civil Procedure of Neuchâtel and it is in
application since 1926.
- Turkish Civil Code and Code of Obligations have
been translated from the Civil Code and the Code of
Obligations of Switzerland and it is in application
since 1926.
- Traffic Code of Belgium is in application in Turkey
since 1950.
Code of Penal Procedure of Germany has been taken as a basic element of Turkish Code of Penal Procedure.
French Administration Law is mostiy in application since Ottoman Empire.




Commercial Code of 1957 has been drafted by Prof. Dr. Ernst E. Hirsch and is stili in application. Hovvever, we expect a new Commercial Code within the next year.
Bankruptcy Law of Switzerland has been adopted in Turkey since 1932.
- The last Turkish Constitution of 1982 has been prepared on the basis of European countries constitutions.

So that, as we may easily observe also with our present work we are dealing with European Laws in certain branches long before some of the new member States of European Union today.

There is no doubt that Turkey has already been in the European Union\\\′s spirit in terms of regarding laws and judicial precedents applicable in Turkey.

Indeed, the intention of this book is to deeply expose the theory and the practice concerning the Turkish Code of Civil Procedure within a comprehensive scheme based on the clear rules and precise precedents of Turkish Courts.

I hope that the present work wül meet with a favorable reception particularly in European Countries and it will assist scholars, lawyers and students who deal with Turkish Domestic Arbitration and comparative studies.

in this occasion, it gives me a very great pleasure to express my thanks to my son Mr. M. Akın DAYINLARLI (LLM) and my assistants attomey-at-law Mr. Cem Çağatay ORAK and attorney-at-law Hüseyin ÖZER for their contributions to review my drafts and their valuable comments; my thanks also goes to my secretary Miss. Ebru NARÎN who has realised the typing of this work.


I would like to slncerely thank the owner of Sözkesen Printery, Mr. Adil SÖZKESEN and ali personnel for their talented presswork.


August 26, 2004 Tunalı Hilmi Kavaklıdere-Ankara TURKEY

Prof. Dr. Kemal DAYINLARLI Member of Ankara Bar Professor of Law at the University of Atılım


TABLE OF CONTENTS


PREFACE
TABLE OF CONTENTS
ABBREVIATIONS
BIBLIOGRAPHY
INTRODUCTION



V IX XV XVII

SECTION ONE
THE GENERAL KNOWLEDGE ABOUT DOMESTIC ARBITRATION


I. The Brief History of the Arbitration 5
II. Domestic Arbitration 7
III. International Arbitration 9
IV. The Parts of Domestic Arbitration 11
1) Compulsory Arbitration 11
a) Resolution of the disputes between public institutions
by compulsory arbitration (l\\\′arbitrage obligatoire) 11
b) Compulsory arbitration according to tobacco and
Tobacco Monopoly Law 12
c) Compulsory arbitration in collective labor disputes 12
d) Disputes carried out by the stock exchange council 13
e) Settlement of the disputes at the Customs Arbitration
Board 13
f) The works that the rice cultivation committee handles
as an arbitrator 13
g) The determination of the fees by the Bar Arbitration
Board 13
h) The determination of the fee to be paid by the Public
Notaries Chamber 14
I) The settlement of the disputes that may arise betvveen
Turkey Football Federation and clubs or between clubs
and players or betvveen tvvo clubs 14
2) Voluntary Arbitration 14
IX

a) Voluntary Arbitration Excluded from our Examination 14
b) Voluntary Arbitration Subject to our Examination 15
§ l.DOMESTIC ARBİTRATİON REGULATED İN
THE CODE OF CIVIL PROCEDURE 16
I. Arbitration Agreement 16
1) The Legal Nature of the Arbitration Agreement 19
a) The Judicial Nature of the Arbitration Agreement 19
b) The Contractual Nature of the Arbitration Agreement 20
c) The Mixed Nature of the Arbitration Agreement 21
d) The Nature of Independency of the Arbitration
Agreement 21
2) The Types of the Arbitration Agreement 22
a) The Arbitration Clause 22
b) The Compromise 25
3) The Results of the Divergence betvveen an Arbitration
Clause and Compromise 26
II. The Parties of the Arbitration Agreement 28
III. Reason of the Parties\\\′ Preferring the Arbitration Agreement 32

1) An expertness field 32
2) Its attainment to the result in a very short time 33
3) Proceedings continue during vacation 33
4) Cheaper cost 33
5) The minority of the number of file 33
6) Confidentiality of arbitration proceedings 34
IV. The Conditions of the Arbitration Agreement 34
1) The Written Form Condition 34
2) From the Aspect of the Subject-Matter of the Arbitration 37
3) From the Aspect of the Certainty of the Dispute 39
4) From the Aspect of Parties\\\′ Arbitration Will 42

V. The Interpretation of the Arbitration Clause and of the
Compromise 44
VI. The Effect of an Arbitration Clause and of a Compromise 45
§ 2.AGREEMENT WITH ARBITRATOR(S) 46
I. Nature of the Agreement with Arbitrators 46
1) Appointment of the Arbitrators 49
a) The Arbitrators\\\′ Being Indicated by Name in the
Arbitration Clause or in the Compromise 49
b) Appointment of the Arbitrators by the Parties 49
c) The Non Existence of a Provision Relating to the
Appointment of the Arbitrators in the Arbitration
Clause or in the Compromise 55
2) The Competency of the Arbitrators 56
3) Termination of Arbitrator\\\′s Mission 58

a) The Resignation of the Arbitrator(s) 58
b) The Challenge of the Arbitrator(s) 58
c) The Dismissal of the Arbitrator(s) 61
II. Arbitrator\\\′s Fees 62
SECTION TWO STAGES OF THE ARBITRATION PROCEEDINGS
§ 3. STAGES OF REQUEST FOR ARBITRATION, HEARING
AND AVVARDING THE ARBITRATION PROCEEDINGS 69
I. Objection as to Arbitration 70
II. The First Meeting of the Arbitral Tribunal, Determination of
the Rules Related to the Procedure and Substantive Law 72






1) Procedure to be Applied to the Arbitration
2) Applicable Substantive Law Provisions
3) The Venue (place) of the Arbitration

72 75 76

XI

4) Submission of the Request for Arbitration, Memorials
and Evidences 77
a) Request for Arbitration 77
b) The Date on which the Arbitration Proceedings Start 78
c) Answer to the Request 79
d) The Counterclaim 81
e) The Replication 82
f) The Rejoinder 83

5) Guarantee to be Given by the Claimant or the Intervener 83
6) Establishment of the Terms of Reference 86
III. The Hearing 87
1) The Fact that the Arbitral Tribunal Receives a Report from
Expert 88
2) Differences of Arbitrator-Experts from Arbitrators 90
3) Proceeding the Site Inspection by the Arbitral Tribunal 91

IV. The Arbitration Time Limit 91
V. Deliberation of the Arbitration Case and Rendering the Final
Arbitral Award 95
§ 4. THE ARBİTRAL AWARD 95
I. Submission of this Award to the Clerical Office of the Court 99
SECTION THREE LEGAL MEANS
§ 5. LEGAL MEANS TO BE APPLIED AGAINST
ARBİTRAL AWARDS 101
I. Appeal against the Arbitral Awards 101
1) Examination of the Arbitral Award by the Court of
Cassation 101
XII

a) Approval of fhe Arbitral Avvards 104
b) Approval of the Arbitral Avvards Subsequent to
the Correction 104
c) Reverse of the Arbitral Avvards 105
II. Reversal Grounds Related to the Arbitral Avvards 106
1) Reversal Grounds Stated in Lavv 107
a) Avvard Rendered after the Expiration of the Arbitration
Time Limit (Code of Civil Procedure, Art. 533/1) 111
aa) Commencement of the Six-Month Period 112
bb) The End of the Six-Month Period 115
cc) Extension of the Six-Month Period 116
dd) Whether the Arbitration Period to be Shortened 121
ee) The Obligation to Render an Arbitral Avvard vvithin
the Arbitration Time Limit 123
ff) Situations that Suspend the Arbitration Period 126
gg) The Fact that the Second Case to be Filed follovving
the Expiration of the Arbitration Time Limit cannot
be Handled by the First Arbitral Tribunal 127
b) in the Cases of Avvard\\\′s Being Rendered for an Issue
not Demanded (Code of Civil Procedure, Art. 533/2) 128
c) in the Case Arbitrators may Render an Avvard, vvhich
Falls beyond their Competency (Code of Civil
Procedure, Art. 533/3) 131
aa) in General 131
bb) Arbitral Avvard Rendered for the Issues, vvhich
are not vvithin the Scope of the Reversal Decision 135
cc) If the Arbitrators Render a Persistence Avvard 135
dd) If the Arbitrators Rule on their ovvn Fees 136
ee) If a Nevv Avvard is Rendered against a Finalized
. Arbitral Avvard 137
ff) The Unanimity Clause Stated in the Arbitration
Agreement 137
XIII

d) The Arbitrators did not Decide upon each of
the Allegations of the Parties (Code of Civil
Procedure Art. 533/4) 139
2) Other Reversal Grounds Determined by the Parties 143
3) The Reversal Grounds of the Arbitral Award Accepted
by the Court of Cassation 144

a) b)
c) d)


in General
The Contradiction of Arbitral Awards with the Justice and Equity
Reversal Grounds Related to the Public Policy
144
146 147
Reversal of the Arbitral Awards because of the Reasons
of General and Special Competency 149



III. The Consequences of the Reversal of the Arbitral Awards

152

1) in the Cases vvhere Arbitral Avvards are Reversed according
to Art. 533/1 of the Code of Civil Procedure 153
2) in the Cases where Arbitral Awards are Reversed according
to Art. 533/2, 3, 4 of the Code of Civil Procedure 154
IV. Whether the Arbitrators can Render a Persistence Decision
against the Reversal Decision or Not 154
V. Reformation Request against Arbitral Avvards 161
VI. Revision of the Judgement 162
VlI.Clarification of the Arbitral Avvards 164
§ 6. ENFORCEMENT OF ARBİTRAL AVVARDS 164
ANNEXI 169
ANNEXII 175
ANNEXIII 181
ANNEXIV 187
ANNEX V 189