An Overview Of Execution Proceedings Without Any Enforcable Title In Turkey And Requirements To Create Formal Evidence

Ceyda Akbal Schwimann

Partner, IAS Partners

The Turkish Execution and Bankruptcy Law (“EBL”) contains important provisions for banks and other financial institutions, entitling them to summary proceedings for the recovery of unpaid loans, provided that certain conditions are fulfilled. In this newsletter, we focus on execution proceedings that can be initiated without any enforceable title under Turkish law, with a focus on the possibility to initiate summary proceedings in order to lift objections to payment orders filed by debtors. We aim to provide information on what banks and financial institutions must do in order to have the required documentation available for use in the future.

Proceedings without Any Enforceable Title Pursuant to Turkish Law

Pursuant to the EBL, it is possible to initiate execution proceedings for pecuniary and security claims, even if there is no final court judgement or arbitral award in favor of the creditor. This is an alternative way with some advantages in order to avoid lengthy civil proceedings, provided that some conditions are fulfilled.

The unpaid creditor may initiate an execution proceeding by submitting an execution request to the competent execution office. Within 3 days following the submission of an execution request, the execution office must issue a payment order which is served to the debtor. The debtor can either pay the debt or object to it in order to stop the execution proceeding.

If the debtor objects to the payment order within 7 days of the receipt of such order, the execution proceeding stops. In this case, the creditor must file a lawsuit which can be either of the following:

(i) the cancellation of the debtor’s objection within the framework of a lawsuit before the competent ordinary civil or commercial court within 1 year of the notification of the objection of the debtor to the creditor; or
(ii) the annulment of the objection before the competent execution court within 6 months of the notification of the objection of the debtor to the creditor.

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