What Is Arbitration?

Arbitration is an alternative dispute resolution (ADR) method in which parties agree to resolve their disputes outside of court, usually through a private and binding decision made by one or more arbitrators. The process is often faster, less formal, and more flexible than traditional litigation.

Legal Framework for Arbitration in Turkey

Domestic Arbitration

Domestic arbitration in Turkey is governed by the Turkish Code of Civil Procedure (Law No. 6100). This law applies to arbitration cases that do not contain a foreign element and provides clear guidelines on the appointment of arbitrators, arbitration procedures, and enforcement of arbitral awards.

International Arbitration

International arbitration is regulated by the International Arbitration Law of Turkey (Law No. 4686), which came into effect in 2001. It applies when there is a foreign element involved, such as a foreign party or cross-border transaction. This law is closely aligned with international standards, particularly the UNCITRAL Model Law, making Turkey an arbitration-friendly jurisdiction for foreign investors.

Key Arbitration Institutions in Turkey

Istanbul Arbitration Centre (ISTAC)

ISTAC is Turkey’s most prominent arbitration institution, offering modern rules and efficient administration. It provides both national and international arbitration services and has gained global recognition for its credibility and neutrality.

Union of Turkish Bars Arbitration Center

This center offers arbitration services primarily for legal professionals and commercial disputes within Turkey. It operates in accordance with domestic arbitration laws and is recognized by Turkish courts.

International Institutions

Many international parties also choose institutions such as the ICC (International Chamber of Commerce) or the LCIA (London Court of International Arbitration) when arbitrating disputes related to Turkey. These bodies provide additional neutrality and are especially favored in high-value or complex cases.

Key Features of Arbitration in Turkey

1. Arbitration Agreement

An arbitration agreement is the cornerstone of the process. In Turkey, it must be in writing and can be included either in the main contract (as an arbitration clause) or as a separate agreement. Turkish courts generally uphold the validity of arbitration agreements unless they are ambiguous or involve non-arbitrable matters.

2. Selection of Arbitrators

Parties are free to appoint one or more arbitrators, and there is no requirement for them to be Turkish nationals or lawyers. If parties cannot agree, the appointment is made by the competent court or arbitration institution.

3. Arbitral Procedure

Turkish arbitration laws grant flexibility in determining the procedural rules. Parties may choose institutional rules (such as ISTAC or ICC) or opt for ad hoc arbitration. The principles of equality, impartiality, and the right to be heard must always be observed.

4. Seat and Language of Arbitration

The seat of arbitration determines the applicable procedural law. Parties can choose Turkey or another country as the seat. Additionally, the language of arbitration can be freely determined by the parties, which is especially beneficial for international disputes.

Enforceability of Arbitral Awards in Turkey

Domestic Awards

Domestic arbitral awards are enforceable through a simplified court recognition process. Unless challenged within 30 days, the award becomes final and enforceable.

International Awards

Turkey is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). This means that foreign arbitral awards are generally recognized and enforced in Turkey, subject to limited exceptions such as public policy violations or lack of due process.

Advantages of Arbitration in Turkey

1. Speed and Efficiency

Court litigation in Turkey can be time-consuming due to procedural complexities and caseloads. Arbitration offers a faster resolution, often concluding in 6–18 months depending on the case.

2. Confidentiality

Unlike court proceedings, arbitration is private. This confidentiality is particularly valuable for businesses that need to protect trade secrets or sensitive commercial information.

3. Expertise of Arbitrators

Parties can select arbitrators with specialized knowledge in the relevant field—whether it be construction, finance, energy, or international trade—ensuring a more informed and relevant decision.

4. Flexibility

Arbitration allows for tailored procedures, including digital hearings, language preferences, and procedural timelines, all of which are attractive for international companies.

5. International Enforceability

Thanks to Turkey’s membership in the New York Convention, awards made in Turkey are enforceable in over 160 countries and vice versa, providing significant value in cross-border transactions.

Challenges and Considerations

1. Cost

While arbitration can be cheaper than litigation in the long run, upfront costs (such as arbitrator fees, institutional charges, and legal representation) can be high. Parties should weigh this against the benefits of speed and enforceability.

2. Judicial Intervention

Although Turkish courts generally support arbitration, they can still intervene in certain stages—such as in the appointment of arbitrators, interim measures, and enforcement proceedings. However, courts are becoming increasingly arbitration-friendly.

3. Arbitrability Limitations

Some matters, such as criminal cases, family law disputes, and certain administrative issues, are not subject to arbitration under Turkish law. It’s crucial to assess whether a dispute is arbitrable before drafting an arbitration clause.

Recent Developments and Trends

Turkey has taken significant steps to promote arbitration. The government and legal community are working to position Istanbul as a regional arbitration hub. ISTAC’s increased visibility, integration of online dispute resolution, and enhanced international cooperation are indicators of Turkey’s commitment to modern arbitration practices.

Moreover, Turkish courts are showing greater deference to arbitration clauses and are less likely to interfere with arbitral awards unless there are compelling reasons. This is a positive trend that reinforces Turkey’s reputation as a reliable arbitration venue.

The Role of an Arbitration Lawyer in Turkey

Choosing the right arbitration lawyer in Turkey is critical to success. These professionals bring in-depth knowledge of Turkish and international legal principles. They work within esteemed institutions such as an Ankara law firm, ensuring tailored strategies for arbitration cases.

Whether you’re a multinational company or a foreign investor, finding the best lawyer in Turkey is essential for legal clarity. Legal advisors with a strong command of English are particularly valuable. An English speaking lawyer or English speaking lawyer in Turkey offers seamless communication and professional service.

Engaging with a legal advisor in Turkey ensures you are backed by expert knowledge in both domestic and international laws. These professionals often work at reputable institutions like an Ankara law office or a trusted lawyer in Turkey.

Benefits of International Arbitration in Turkey

International arbitration in Turkey has grown rapidly. With Turkey’s strategic location, legal reforms, and experienced arbitration panels, it is now a credible venue for resolving transnational disputes. Major corporations rely on a dedicated international law firm to manage cases effectively.

An experienced Ankara lawyer understands the local judicial culture and international expectations. Whether part of an Ankara law firm or independently practicing, they provide robust representation in arbitration and other legal services.

Choosing the Right Ankara Law Firm

A top-tier Ankara law firm combines local insight with global expertise. These firms often have teams of bilingual or multilingual professionals, making it easier for foreign clients to navigate the legal system with an English speaking lawyer in Turkey by their side.

From contract disputes to investment arbitration, a seasoned arbitration lawyer can guide you through each step of the process. Their deep familiarity with the intricacies of arbitration in Turkey ensures clients receive strategic advice and effective advocacy.

Whether you’re seeking expert legal counsel, navigating complex cross-border disputes, or entering commercial agreements, Turkey offers a robust platform for arbitration and legal representation. Partnering with a reputed lawyer in Turkey or an Ankara law office can make all the difference. Explore more about international arbitration in Turkey and secure your legal future today.

Turkey is one of the increasingly important destinations for commerce, travel as well as investment with significant opportunities. Since Turkey is an important commercial hub as such, the possibility of disputes over which Turkish courts are competent to resolve are quite high under the conflicts of law rules. The main code that regulates lawsuits involving foreigners and foreign elements in Turkey is the International Private and Civil Procedure Law.  In addition, depending on the individual case, other legislation can also be applied to the underlying dispute.  This article looks into the procedural rules of litigation in Turkey within the framework of Turkish Private Law. 

How to file a lawsuit in Turkey?

First Step:  Analysis of the Dispute and Drafting the Petition

Before filing a lawsuit before Turkish courts, the correct analysis of the concrete dispute between the parties is one of the most important issues to consider. According to Turkish Law, courts can hear a case only if it is authorized by law. Basically, the Turkish judiciary has three branches: criminal, civil, and administrative. If a criminal act is at issue, the victim can sue before the criminal courts. 

An administrative lawsuit can be filed before administrative courts against an unlawful act or transaction of the administration to revoke such measure as well as claim damages.

As an example, in the area of public procurement, administrative courts adjudicate cases regarding public tender procedures, as well as disputes arising from administrative acts such as prohibition from participating in public tenders. It should however be stated that, under the relevant law, once an administrative authority and a real or legal person enter into a public procurement contract following the completion of the tender procedure, the administrative court is no longer competent. This is because contracts executed subject to the Public Procurement Contracts Law are legally deemed as private contracts between two parties, and in case of disputes, civil courts have jurisdiction over them. 

Civil courts have jurisdiction to resolve cases involving private law issues, which are the most common cases between trading foreign and local parties. For instance, a foreign party that is unable to collect its receivables from a local party should file a lawsuit before the civil courts. 

The civil courts hear the cases based on their area of specialization, as regulated under Turkish Law. Accordingly, in the Turkish legal system, civil courts are divided as follows:

1. Courts of General Jurisdiction,

2. Courts of Peace,

3. Commercial Courts

4. Labor Courts

5.  Family Courts

6. Enforcement and Execution Courts

7. Consumer Courts

8. Cadastral Courts

9. Civil Courts for Intellectual and Industrial Property Rights 

The Civil Courts of General Jurisdiction are the courts that have the widest jurisdiction over civil law disputes, and therefore,  there is at least one civil court of general jurisdiction in any jurisdictional area; whereas the specialized courts are mainly found in larger jurisdictional areas in Turkey. Thus, in the event that there is no specialized court at the place where the lawsuit must be filed according to the rules of jurisdiction, the courts of general jurisdiction are competent to hear the case in the capacity of that specialized court.

In addition to the above, the civil court of general jurisdiction is the competent court for the recognition and enforcement (“tanıma ve tenfiz”) of foreign judgments and arbitral awards. The same way in almost all jurisdictions worldwide, foreign court decisions and international arbitral awards need to obtain a recognition and enforcement decision by Turkish Courts to become enforceable in Turkey. Consequently, those who wish to have their foreign judgments enforced in Turkey must first file a lawsuit for their recognition or enforcement, and then apply to the execution offices with the enforcement decision. 

Civil commercial courts handle commercial disputes and those that arise between merchants.  When real or legal person merchants doing business in Turkey have a legal dispute with their Turkish counterparts, such as breach or unlawful termination of the contract,  then the commercial courts are competent to resolve the conflict.

Apart from the correct determination of the competent court for the underlying dispute, case analysis is also crucial for deciding on the claims to be submitted to the court. It is very important that the claims are determined in a precise and clear manner. This is because, in Turkish law, claims and defenses cannot be expanded beyond the first petition subject to few exceptions.

Second  Step: Submission of the Petition to the Court and Payment of Court Fees

A lawsuit is filed when the petition is submitted to the competent court, and the legal fees and expenses are deposited with the court’s offices. Under  Turkish Law, there is a dual juridical fee structure, consisting of proportional fees or fixed fees. The fees and expenses are determined based on the title of the parties (consumer, merchant etc.), the subject of the case, and the amount of dispute. 

In addition to that, due to Turkish Law, the party who relies on a certain evidence must pay the expenses relating to the evidence.  For instance, if a party would like to rely on an expert report, she/he must pay for such expert’s expenses. 

Apart from the above, foreign parties involved in a Turkish lawsuit are also subject to a security fee requirement. Security fee can be defined as a sum of money to be paid to the court’s offices, usually in the amount of 10-20% of the disputed amount, to be able to file a lawsuit by foreign real or legal persons. That being the case, if there is an agreement between Turkey and the state of residence of the foreign plaintiff, or if, in practice,  the reciprocity principle applies, the foreigner may be exempted from payment of the security fee.

Third Step: Petition of Reply, Expert Report, Witnesses

The respondent has to submit its reply within two weeks following the service of the petition according to Turkish Law. After the petition of reply, if deemed necessary, the court forwards the case file to the expert/panel of experts,  hears the witnesses, examines the new submissions. The parties can object to the expert report and statements of witnesses etc. During this phase, the parties attend hearings and expert examinations in certain specific situations.

Fourth Step: Decision

When the court completes its examination, it renders a judgment.  Every court judgment  must include the reasoning of the judges and indicate the time period and procedure of appeal. The party against whom the court decides can appeal the decision within the prescribed time-limit, whereas the other party declared rightful by the court can proceed with enforcement and execution. In Turkish Law, in principle, appealing a court decision does not suspend the execution, subject to limited exceptions. However,the appealing party may request suspension of the execution to the Appeal Court by depositing a security fee to the execution offices, in which case execution is suspended until the appellate court renders its decision. 

Litigation in Turkey, briefly summarized above, is governed by a complex set of procedural rules that are subject to changes from time to time. This makes it necessary to carefully assess the relevant cases and determine the correct legal strategy to achieve timely and favourable results in litigation which can be a lengthy process. Therefore it is recommended to always obtain competent legal assistance before filing a lawsuit in Turkey to avoid any loss of rights.   

2003 yılında yürürlüğe giren ve 4875 sayılı Doğrudan Yabancı Yatırımlar Kanunu (R.G.: 17.06.2003/25141), 6224 sayılı Yabancı Sermayeyi Teşvik Kanunu’nu (R.G.: 18.01.1954/6224 ) yürürlükten kaldırarak Türkiye’ye yapılacak doğrudan yabancı yatırımlar için öngörülen ön izin alma ve yabancı ortak başına en az 50.000 ABD Doları tutarında yabancı sermayeyi Türkiye’ye getirme zorunluluklarını ortadan kaldırmış, bunun yerine bir bilgilendirme sistemi getirmiştir. 4875 sayılı Kanun doğrudan yabancı yatırımların özendirilmesi ve yatırım ve yatırımcı kavramlarında uluslararası standartların sağlanması amacıyla, uzun vadeli ve kalıcı yatırım yapan doğrudan yabancı yatırımcıları koruyucu düzenlemeler içermekte olup, hisse senedi veya tahvil satın alınarak yapılan portföy yatırımları bu Kanun kapsamına girmemektedir.

4875 sayılı Kanunla getirilen yeni düzenleme ile yabancı tüzel kişiler Türk hukukunda öngörülen tüm şirket türlerini kurabilme, şube veya irtibat bürosu açabilme, Türkiye’de kurulu bir şirketin hisselerini ön izne gerek olmaksızın alabilme, Türkiye’deki faaliyetlerinden elde ettikleri gelirlerini yurtdışına serbestçe transfer edebilme, yabancı personel istihdam edebilme, devletin sağladığı yatırım teşviklerinden yararlanabilme gibi yerli yatırımcıların sahip oldukları imkanların tümünden yararlanabilmektedirler.

Buna göre, yabancı tüzel kişiler Türk Ticaret Kanunu’nda düzenlenen tüm şahıs ve sermaye şirketi türlerini, ayrıca Borçlar Kanunu’nda düzenlenen adi şirketleri serbestçe kurabilirler. Bununla birlikte, yabancı yatırımcılar tarafından uygulamada en çok kurulan şirketler anonim ve limited şirketler olup, Türk hukukuna göre adi şirket sayılan ortak girişimler (joint venture) de genellikle bu tür şirketlerin kurulması yoluyla gerçekleşmektedir. Tek ortaklı limited veya anonim şirket kurulması mümkündür.

Şirketler ilgili ticaret sicil müdürlüğüne kuruluş belgelerinin teslimi ve tescil ile kurulurlar. Kuruluştan önce, anonim şirketlerde sermayenin %25’inin ödenmiş olması koşuluyla, kalan sermaye kuruluştan itibaren 2 yıl içinde ödenebilir. Limited şirketler bakımından ise, sermayenin %25’inin kuruluştan önce ödenmiş olması zorunluluğu kaldırılmıştır. Ek bir koşul olarak, regüle edilen sektörlerde faaliyet gösteren şirketlerin, örneğin bankacılık, sigortacılık, faktoring ve finansal kiralama şirketleri ile lisans alarak faaliyette bulunan enerji şirketlerinin, faaliyet alanlarına göre Ticaret Bakanlığı veya diğer ilgili düzenleyici kurumlardan tescilden önce ve kuruluştan sonraki esas sözleşme değişikliklerinde ön izin almaları gerekmektedir.

Yine yabancı tüzel kişiler Türkiye’deki faaliyetlerinden elde ettikleri kar, temettü, satış, tasfiye ve tazminat bedelleri, lisans, yönetim gibi sözleşmelerden alınan bedeller gibi gelirlerini, dış kredi anapara ve faiz ödemelerini yurtdışına serbestçe transfer edebilirler.

Türkiye’de kurulu şirketlerin yabancı personel istihdam edebilmeleri 6735 sayılı Uluslararası İşgücü Kanunu’nda öngörülen koşullara tabidir. Buna göre, yabancı personeli istihdam edecek Türkiye’de kurulu şirketin ödenmiş sermayesinin en az 100.000 TL olması, son mali yıldaki ihracat toplamının en az 250.000 ABD Doları olması, veya brüt satışlarının en az 800.000 TL olması aranmaktadır.

Ayrıca, Türkiye’de çalışacak olan her yabancının, aksi bir uluslararası antlaşma veya başka bir kanunda düzenlenmediği takdirde çalışma izni alması, yine çalışma izni almak için başvuran her bir çalışana karşılık ilgili şirkette beş Türk vatandaşı çalışanın istihdam edilmesi gerekmektedir. Bununla birlikte 6735 sayılı Kanun’a göre, anonim şirketlerin Türkiye’de yerleşik olmayan yönetim kurulu üyeleri ile limited şirketlerin şirket yetkilisi olmayan yabancı ortaklarının çalışma izni alma zorunlulukları bulunmamaktadır.

Türkiye’de şirket kuran veya Türkiye’de kurulu bir şirketin ortağı olan yabancı tüzel kişiler, 2012/3305 sayılı Yatırımlarda Devlet Yardımları Hakkında Karar uyarınca, yerli yatırımcılarla eşit koşullarda teşvik programlarından faydalanabilmektedirler. Bu teşvik programları kapsamında, yatırım yapılan bölge ve belirli endüstriler ve ARGE faaliyetleri temelinde KDV muafiyeti, gümrük vergisi muafiyeti, vergi indirimi, sigorta primi desteği, gelir vergisi desteği, faiz oranı veya kar payı desteği, yatırım yeri tahsisi gibi teşviklerden faydalanma imkanı sunulmaktadır.

Görüldüğü üzere, Türkiye’deki yatırım ortamının iyileştirilmesi ve yabancı sermayenin Türkiye’ye uzun vadeli olarak gelmesinin özendirilmesi amacıyla bürokratik işlemlerin sadeleştirilmesi, engellerin kaldırılması politikası istikrarlı olarak sürdürülmektedir. Bu kapsamda, Türkiye’de şirket kurarak yatırım yapan yurtdışında yerleşik Türk ve yabancı yatırımcıların uzun vadeli hedeflerini en verimli şekilde gerçekleştirmek konusunda uzman hukuk büromuz, yatırımların her aşamasında bu alanda deneyimli ve bilgili kadrosu ile yatırımcı adaylarına hukuki ve danışmanlık hizmeti sağlamaktadır.

Introduction

Arbitration is often perceived as a process by which the parties seek monetary damages.[1] However, the number and variety of the remedies available for the parties in international arbitration are very broad, indeed.[2] In this context, in addition to the monetary compensation, an arbitral award may (and often does) also include “punitive damages and other penalties, specific performance and restitution, injunctions, declaratory relief, rectification, filling gaps and adaptation of contracts”^[3]

First of all, although the transactions in the international commercial arbitration and enforcement processes are being carried out confidentially and therefore it is not possible to provide a certain ratio; the studies carried out with the contribution of the arbitral institutions show that in “a great variety” of the cases, parties seek non-monetary reliefs.[4] Furthermore, according to the same studies, the arbitral tribunals are also not reluctant to grant such remedies as it will be illustrated below.[5]

Among these different options, in this paper, “the specific performance” remedy is evaluated and its common kinds are presented along with the factors that should be taken into account in ordering specific remedies.

Specific Performance

To begin with a brief definition of the concept, [6] with reference to the definition made by Samaa A.F. Haridi “specific performance” as a remedy can be defined as remedies ordering “(…) the (a) party (to) perform the obligations under the contract as required by the contract”[7]

In the practice of international arbitration; it is possible to observe that such remedies may be granted as the final determination or as interim measures.[8] In addition to that, it is also not rare to see that the specific performance remedy is granted along with the other types of remedies.

Common types of specific performance

As noted above, it is possible to mention a variety of non-monetary reliefs.[9] Being one of these remedies, “the specific performance” can also be held under some sub-divisions.

In this context, firstly, the specific performance may require a party to carry out certain acts and/or actions. Giving consent to a transfer, issuing power of attorney or handing over certain equipment[10] may be listed as some examples of such remedies.

For illustrating this type of specific performance remedy, it is possible to refer to some reported arbitral awards. For example, in one case reported by the ICC in which the “common law” applied, the Arbitral Tribunal ordered “the transfer of the Respondent’s 30% of the Participating Interest to the Claimants.”[11] Similarly in another ICC case, in which the “civil law” applied, the Respondent is ordered “to perform under the terms of the Agreement to enable the Claimant to sell, market, and distribute products covered by the Agreement” [12]

Secondly, the specific performance ordered by an arbitral tribunal can also be an “omission” which prohibits a party from carrying out certain actions. For example, cessation of acts breaching the contract,[13] not raising objections to certain procedures, not preventing certain acts would be examples of such “omissions”.

This type of remedy has also been widely applied by the different arbitral tribunals. To illustrate this type of remedy with the reported cases, it is possible to note that in a case reported by the ICC in which the “common law” applied to the merits of the Case, the Respondent was ordered to “cease any use of the trademark”[14]. Similarly, in a case reported by Vienna International Arbitral Centre, the Respondent was ordered “to refrain from transferring certain data to third parties without the consent”[15].

Factors and indications in ordering specific performance

In addition to the availability of specific performance as a remedy in international arbitration, the appropriate use of it also bears importance.[16] In this context, arbitral tribunals should evaluate a number of factors before ordering specific remedies.

The first of these factors is the agreement of the parties, which flows from the fact that arbitration is a consent-based process and the parties -save for some exceptions- are capable of agreeing on the powers of the arbitral tribunal. Accordingly, the parties may specify the remedies that may be ordered by the arbitral tribunal. Therefore, there is no doubt that the parties may exclude the “specific performance” remedy in the arbitration agreement.[17] In the absence of such agreement, the arbitral tribunal should apply the procedures available in applicable law.

The second factor that is relevant for the decision of specific performance is the applicable law. In this context, it should be taken into account that different legal systems have different regulations/applications for “specific performance”. It should be noted that every jurisdiction may bring different restrictions on the type of the specific performance remedy as well as the procedure for the adaptation of such remedies.

Herein the traditional differences between the common and civil law jurisdictions should also be emphasized.[18] More specifically, it is argued that in civil law jurisdictions specific performance is traditionally the primary remedy to be ordered upon the request of the Claimant, while in common law jurisdictions specific performance is often regarded as a secondary remedy to be applied in cases in which ordering damages would not be equitable.[19]

In addition to that specific regulations of “the law of the seat” and the “law of the jurisdiction parties will seek enforcement” would be relevant for an arbitral tribunal in ordering specific performance.

It is needles to note that the specific circumstances of the case would also be very important in deciding the specific performance.[20]

Conclusion

To conclude, it is possible to note that contrary to the common perception, in international arbitration alternative remedies to the monetary compensation is available. The existence of such remedies further contributes to the flexibility and efficiency of the arbitration process.

In this context, being one of these alternatives, “specific performance” should be regarded as an important tool in the “remedial armory of an arbitral tribunal”[21] which would enable the arbitral tribunal to reach a more equitable result.

However, it is vital for arbitral tribunals to evaluate the agreement of the parties, applicable law, and the specific circumstances of the case. Since ordering specific performance may not be suitable for the case and even more, applicable law may prohibit the arbitral tribunals to order such reliefs.

BIBLIOGRAPHY

Blackaby N and others, Redfern & Hunter On International Arbitration (6th edn, 2015)

Haridi AFS, ‘Remedies and Costs’ (Lecture in CIArb Diploma in International Arbitration, 2020)

Heider M, ‘International Arbitral Centre Of The Austrian Federal Economic Chamber (Vienna International Arbitral Centre))’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011)

Hoellering M, ‘Remedies In Arbitration’ (1985) 20 The Forum (Section of Insurance, Negligence and Compensation Law, American Bar Association

Jones D, ‘Remedial Armoury Of An Arbitral Tribunal: The Extent To Which Tribunals Can Look Beyond The Parties Submissions’ Arbitration’ (2012) 78 Arbitration : the journal of the Chartered Institute of Arbitrators

Mazza F, ‘International Chamber Of Commerce (ICC)’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011)

McKendrick E, and Maxwell I, ‘Specific Performance In International Arbitration’ (2013) 1 The Chinese Journal of Comparative Law

Moses M, The Principles And Practice Of International Commercial Arbitration (Cambridge University Press 2010)

Schneider M, ‘Non-Monetary Relief In International Arbitration: Principles And Arbitration Practice’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011)

[1] Michael E. Schneider, ‘Non-Monetary Relief in International Arbitration: Principles and Arbitration Practice’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011), p. 3.

[2] Michael F. Hoellering, ‘Remedies in Arbitration’ (1985) 20 The Forum (Section of Insurance, Negligence and Compensation Law, American Bar Association, p. 516.

[3] Nigel Blackaby and others, Redfern & Hunter on International Arbitration (6th edn, 2015), p. 515.

[4] Schneider (n 1) p. 16.

[5] ibid.

[6] However, it should also be noted herein that the definition of the “specific performance” term is subject to different views in different jurisdictions. This paper confines itself from presenting these discussions and provide an exhaustive definition on which there is a convergence.

[7] Samaa A.F. Haridi, ‘Remedies and Costs’ (Lecture in CIArb Diploma in International Arbitration, 2020)

[8] Schneider (n 1) p. 32.

Margaret L Moses, The Principles and Practice of International Commercial Arbitration (Cambridge University Press 2010), p. 187.

[9] Schneider (n 1) p. 7.

[10] ibid p. 14.

[11] Francesca Mazza, ‘International Chamber Of Commerce (ICC)’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011), p. 144.

[12] ibid p. 147.

[13] Schneider (n 1) p. 14.

[14] Mazza (n 11) p. 146.

[15] Manfred Heider, ‘International Arbitral Centre of the Austrian Federal Economic Chamber (Vienna International Arbitral Centre))’, Performance as a Remedy: Non-Monetary Relief in International Arbitration: ASA Special Series No. 30 (1st edn, JurisNet 2011) p. 138.

[16] Blackaby and others (n 3) p. 519.

[17] ibid p. 515.

[18] This paper does not assert such a difference between çivil and common law systems. It is argued by some authors that both systems’ typical approach to specific performance is similar. See: E. McKendrick and I. Maxwell, ‘Specific Performance in International Arbitration’ (2013) 1 The Chinese Journal of Comparative Law

[19] E. McKendrick and I. Maxwell, ‘Specific Performance in International Arbitration’ (2013) 1 The Chinese Journal of Comparative Law, p. 200.

[20] Blackaby and others (n 3) p. 519.

[21] Doug Jones, ‘Remedial Armoury of an Arbitral Tribunal: The Extent to Which Tribunals Can Look Beyond The Parties Submissions’ Arbitration’ (2012) 78 Arbitration: the journal of the Chartered Institute of Arbitrators.

10 Nisan 1926 tarih ve 805 sayılı İktisadi Müesseselerde Mecburi Türkçe Kullanılması Hakkında Kanun, Türk şirketlerinin kendi aralarındaki ve belirli durumlarda yabancı şirketlerle yaptıkları sözleşmelerde Türkçe kullanımını zorunlu tutmaktadır. Bu durum günümüzde giderek tercih edilme oranı yükselen tahkim anlaşmalarında Türkçe’nin bir geçerlilik şartına dönüşmesine sebep olmakta ve doktrinde tartışılmaktadır. İstanbul Bölge Adliye Mahkemesi’nin Şubat 2020’de verdiği kararlarıyla konu bir kez daha gündeme gelmiştir.

Söz konusu kanunun ilk maddesi gereği “Türk tabiiyetindeki her nevi şirket ve müesseseler, Türkiye dahilindeki her nevi muamele, mukavele, muhabere, hesap ve defterlerini Türkçe tutmağa mecburdurlar”. Buna göre, Türk tabiiyetindeki her şirket ve müessesenin, buna şahıs şirketleri de dahil olmak üzere, Türkiye’de yapacakları tüm işlemleri, sözleşmeleri, iletişimleri ve tutacakları hesap ve defterleri Türkçe düzenlemeleri mecburidir.

Bu zorunluluk, Türk şirketlerin, Türkiye içinde etki doğuracak bir iş için, yabancı şirket ve müesseselerle yapacakları işlem, sözleşme, iletişim ve tutacakları hesap ve defterleri de kapsamakta ancak, bir Türk şirketin yurt dışında yapacağı bir sözleşmeyi, bu sözleşmenin hüküm ve sonuçları Türkiye’de doğsa dahi kapsamamaktadır. Keza, Türk tabiiyetindeki şirket ve müesseselerin yurt dışındaki şube ve kuruluşlarıyla yapacakları işlemleri veya yurt dışında yapacakları başkaca işlemleri kapsamamaktadır.

Kanun ikinci maddesinde, “Ecnebi Şirket ve müesseseler için bu mecburiyet Türkiye müessesatı ile ve Türkiye tebaasından olan efrat ile muhabere, muamele ve temaslarına ve devair ve memurini Devletten birine ibraz mecburiyetinde bulundukları evrak ve defterlerine hasredilmiştir” demekle söz konusu zorunluluğun Türkiye’de bulunan yabancı şirketler için kapsamını düzenlemiştir.

Buna göre, söz konusu Türkçe kullanımı zorunluluğu işbu yabancı şirketler için Türk resmi makamları nezdinde sunacakları evrak ve defterlerle sınırlandırılmıştır. Ancak, söz konusu yabancı şirketlerin Türk tabiiyetindeki şirketler ve Türk vatandaşları ile yapacakları işlem, iletişim ve temaslar için yine Türkçe kullanımı zorunludur. Bu zorunluluk Türkiye sınırları içinde olsa dahi yabancı şirketlerin kendi aralarındaki işlemler veya iç yazışmaları için aranmamakta fakat, bu çeşit evrakın Türk makamlarına sunulması durumunda Türkçe olması zorunluluğu bulunmaktadır.

Bunlara ek olarak Kanun’un üçüncü maddesi, yabancı şirketlerin Türkçe ile birlikte başka bir dilde de evrak hazırlayabileceklerini ancak imzaların Türkçe evrakın altına atılması gerektiğini, fakat “imza diğer lisanla yazılmış kısım veya nüshanın altına mevzu olsa dahi Türkçesi muteberdir” diyerek Türkçe belgenin geçerli kabul edileceğini düzenlemiştir.

Zaman içinde Yargıtay, 805 sayılı Kanun’a dayanarak pek çok karara imza atmıştır. Bunlardan 11. Hukuk Dairesi’nin 2009/2051 E. ve 2009/5292 K. sayılı 4.05.2009 tarihli kararında bir yanın gerçek kişi öteki yanın Türkiye’deki bir banka olduğu olayda taraflar arasında bankanın Bahreyn’deki şubesine para transferi için vadeli/spot alım satım işlemleri sözleşmesinin İngilizce olarak düzenlenmesinin 805 sayılı Kanun’un birinci maddesine aykırı olduğu ve aynı kanunun dördüncü maddesi gereği bu belgeye mahkeme karşısında dayanılamayacağı hüküm altına alınmıştır. Yine, Yargıtay 13. Hukuk Dairesi’nin 2003/3773 E. ve 2003/8176 K. sayılı 23.06.2003 tarihli kararında aynı kanunun birinci maddesine atıfla taraflar arasındaki kayıt ve defterlerin Türkçe tutulması zorunluluğuna dikkat çekilmiştir.

805 sayılı Kanun’un uygulaması bu kararlar ışığında gelişmekteyken söz konusu hükümlerin iki tarafın da Türk tabiiyetindeki müesseseler olduğu ve taraflardan birinin yabancı bir şirket olduğu durumlarda tahkim anlaşmalarına etkisi son zamanlarda irdelenmiş ve tartışma konusu olmuştur. Bu bağlamda, İstanbul Bölge Adliye Mahkemesi’nin 12. Hukuk Dairesince aynı tarihte verilmiş iki güncel kararın incelenmesi, yasanın tahkim anlaşmalarına etkisini anlayabilmek için önem arz etmektedir.

İstanbul Bölge Adliye Mahkemesi’nin 12. Hukuk Dairesi önüne getirilen 2019/2389 E. sayılı dosyada her iki tarafın da Türk tabiiyetine tabi bir şirket olduğu çarterparti anlaşmasında yer alan yabancı dilde yazılmış bir tahkim şartının geçerliliği sorgulanmıştır. Buna göre, ilk derece mahkemesi söz konusu tahkim şartını geçerli kabul edip davalı tarafın tahkim ilk itirazını yerinde bularak yargılamayı sonlandırmış, davacı taraf tahkim şartının geçerli olmadığı yönündeki itirazıyla istinaf yargı yoluna başvurmuştur.

İstanbul BAM 12. Hukuk Dairesi 13.02.2020 tarihli ve 2020/189 K. sayılı kararında “Ancak çaterpartinin her iki yanının da Türk tabiiyetindeki şirketler olduğu anlaşılmaktadır” diyerek 805 sayılı Kanun’un birinci maddesine atıf yapmış ve bu madde uyarınca Türk şirketlerinin Türkiye’de akdettikleri sözleşmelerde Türkçe’nin kullanımının zorunlu olduğu, bu zorunluluğa uyulmamasının aynı kanunun dördüncü maddesi gereği sözleşmeyi geçersiz kılacağını belirtmiştir. Bu dayanakla, “çarterpartinin her iki yanı Türk uyruklu olduğu halde yabancı dilde düzenlenmesi nedeniyle geçersiz bulunduğundan” tahkim ilk itirazının reddedilmesi ve yargılamaya devam edilmesi gerektiği yönünde karar vererek ilk derece mahkemesinin kararını bozmuştur.

Yine aynı maddeyle ilgili olarak, İstanbul Bölge Adliye Mahkemesi’nin 12. Hukuk Dairesi önüne getirilen 2020/19 E. sayılı dosyada davacı taraf 805 sayılı Kanun’un birinci maddesine atıfla bir tarafın Türk tabiiyetinde bir şirket diğer tarafın yabancı bir şirket olduğu olayda taraflar arasında yabancı dilde yapılan tahkim anlaşmasının hükümsüz olduğunu öne sürmüş ve diğer yanın tahkim ilk itirazının reddini talep etmiştir.

İstanbul Bölge Adliye Mahkemesi’nin 12. Hukuk Dairesi, 13.02.2020 tarih ve 2020/19 K. sayılı kararında söz konusu kanunun birinci ve ikinci maddelerinde yer alan düzenlemeler arasındaki farka dikkat çekerek taraflardan birinin yabancı olduğu olayda tahkim şartını içeren sözleşmenin 805 sayılı Kanun’un birinci maddesi kapsamında olmayacağı sonucuna varmış ve talebi reddederek tahkim ilk itirazını yerinde bulmuştur.

Aynı hukuk dairesi tarafından verilmiş iki farklı kararın ilkinde her iki taraf Türk tabiiyetinde şirketler olduğundan tahkim anlaşmasının Türkçe yapılmış olması geçerlilik şartı olarak aranmış, ikincide taraflardan biri yabancı bir şirketse tahkim anlaşmasının yabancı dilde olması yasaya aykırı bulunmamıştır.

Söz konusu ilk karar kanunun gerekliliği olarak yorumlanmakla, ikinci kararın tahkim dostu bir yaklaşım oluşturduğu yorumları yapılmıştır. Ancak, dikkat edilmesi gereken söz konusu ikinci kararda davacı yanın tahkim ilk itirazının reddi için dayanak olarak 805 sayılı Kanun’un birinci maddesini öne sürmüş olması ve 12. Hukuk Dairesi’nin bu madde çerçevesinde taraflardan birinin yabancı olduğu sözleşmelerin madde kapsamında olmayacağına hükmetmiş olmasıdır. Öyle ki, mahkeme karar metninde 805 sayılı Kanun’un birinci ve ikinci maddesini kıyaslamış olup eğer davacı yan talebine dayanak olarak Türk şirketler ve yabancı şirketler arasındaki belgelerin diline ilişkin ikinci maddeyi öne sürmüş olsaydı farklı bir karar çıkıp çıkmayacağı tartışılmaktadır.

Law, as well as all other disciplines, could not stay immune from adopting itself to the world-wide technological evolution and digital transformation. Global effects of the Covid-19 pandemic fostered this adaptation by moving legal processes into online platforms. Arbitration is one of these legal processes that is affected from the Covid-19 pandemic and adopted itself into technological developments. Below is an overview of arbitration hearings and how they are conducted online in today’s world.

Arbitration, as a dispute resolution mechanism, sets an alternative to litigation before domestic judiciary. It is conducted through an arbitral tribunal that consists of a single arbitrator or a panel of arbitrators who are appointed by the parties of the dispute or an international mechanism. As this brings a neutrality element to arbitration, parties of a legal relationship may agree to solve any dispute arising among them as regards to this relationship through the way of arbitration.

Such an agreement between the parties can be formed before or after the occurrence of a dispute. Along with agreeing on arbitration as the dispute resolution method, parties are also free to determine the rules applicable to the arbitration proceedings and the seat of arbitration. It is this emphasis on the will of the parties to freely determine the applicable law and the seat of arbitration that allows them to agree also on the conduct of arbitration hearings online.

Conducting arbitration hearings online became essential, especially for international arbitration, with the restrictions introduced globally due to the Covid-19 pandemic. UNCITRAL Rules requires a foreign element within the contract between parties of a dispute in order to categorize an arbitration as international. This foreign element can be satisfied, inter alia, with a difference on the nationalities of parties or the location of seats of businesses.

As parties of an international arbitration tend to agree on a third country as the seat of arbitration, for neutrality purposes, restrictions, such as those on travel, caused by the Covid-19 pandemic. Since these restrictions make it unbearable for parties that choose a third state as the seat of arbitration to attend hearings, it has become inevitable to have online hearings and adapt regulations on arbitration accordingly.

Some examples from the regulations made by arbitration institutions to allow conducting hearings online are as follows:

Istanbul Arbitration Center (ISTAC)

ISTAC in Turkey published “Online Hearing Rules and Procedures” for the online arbitration process. According to Article 2 of the Rules and Procedures, “At the request of any party or in cases where the Sole Arbitrator or the Arbitral Tribunal deems appropriate, hearings or meetings may be conducted through video conference or teleconference.” In accordance with these rules and procedures, a sole arbitrator or a panel of arbitrators, by taking the opinions of the parties, can determine the software of the online hearing, confidentiality and security measures, and other issues before conducting the hearing.

Then, the sole arbitrator or the panel prepares the technical infrastructure for the online hearing and shares it with the parties. In this case, submissions of documents can be done electronically upon the permission received from the sole arbitrator or the panel. Likewise, the sole arbitrator or the panel can also decide to record the audio of the hearing with the permission of the parties and then to transcript them into written records, at the expense of the parties.

Hong Kong International Arbitration Center (HKIAC)

HKIAC gives importance to the online arbitration system and has published a guideline for virtual hearings. The parties can choose the online procedure by filling out the online virtual hearing inquiry form or contacting directly to the arbitration center. HKIAC provides an IP-based video conference system that can support up to eight different locations, a Cloud-based video conference system that is compatible with all major video conference platforms, and flexible pricing options. And for the audio conference, it provides high-speed connection to more than 80 countries and supports up to 30 lines.

International Centre for Settlement of Investment Disputes (ICSID)

ICSID is another institute that provides services for online arbitration as “available in ad-hoc proceedings under UNCITRAL and other non-ICSID sets of rules at competitive rates”. ICSID, additionally, provides dedicated support, high-definition audio and video, real-time document display, virtual chat function, World Bank Group’s stringent security, virtual court stenographer. ICSID uses Cisco’s Webex platform for online hearings.

It is clear from these observations that the requirements of our age and changes in technology are affecting legal processes while arbitral institutions are adapting themselves according to these developments. It still however, needs further steps as there is need for more guidelines on online arbitration, together with more available platforms for virtual hearings.

Introduction

Arbitration is a private dispute resolution mechanism by an independent and impartial arbitrator based on the parties’ consent and backed by an international system of enforcement supported by States. International arbitration has become the principal method of resolving disputes between states, individuals, and corporations in almost every aspect of international trade, commerce, and investment.

With its widespread importance in the present world where commercial life demands a quick and timely resolution of disputes, international arbitration is overwhelmingly preferred by businesses due to its perceived qualities, such as speed, confidentiality, procedural flexibility, expertise and ease of enforcement.  In international arbitration, parties can determine the number of arbitrators of the tribunal, the procedure for selecting arbitrators, the place of arbitration, the applicable law, and the tribunal’s powers. Moreover, arbitration provides businesses with access to a system for adjudicating disputes that are largely similar irrespective of where the dispute may arise.

If the parties choose to resolve their commercial disputes by way of arbitration, this will remove the courts’ jurisdiction and the case must be decided by arbitrators.

Our firm has significant experience in international arbitration and other forms of alternative dispute resolution. Our attorneys act as counsel in high–value arbitrations before[sd1]  leading arbitration institutions, including the ICC and Milan Chamber of Arbitration. We have a dedicated team with specific expertise to meet our clients’ expectations and handle complex matters before international tribunals. 

Arbitration and Turkish Law

Turkey has a modern arbitration legislation and a signatory to the 1958 UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), which is applicable in Turkey since 1992. Thus, the recognition and enforcement of arbitration awards rendered outside Turkey are subject to the New York Convention.

International Arbitration Code No. 4686: If the dispute subject to arbitration involves a foreign element and the seat of arbitration is Turkey, then this arbitration is governed by the International Arbitration Code No. 4686, which is based on the UNCITRAL Model Law and some provisions of the Swiss Private International Law.

Foreign Element: According to the International Arbitration Code, for an arbitration to be international and thus be subject to the provisions of the Code, it has to involve a foreign element; which is deemed to be present when:

• The parties to the arbitration agreement have their domiciles or habitual residences or places of business in different States,
• The seat of arbitration, the place where the substantial performance of the contract is to take place or where the dispute has the closest connection is outside the State in which the parties have their domiciles, habitual residences or places of business,
• A shareholder of a company that is a party to the arbitration agreement has brought foreign capital into Turkey, or, for the execution of the underlying contract, a loan agreement has to be concluded for obtaining foreign capital,
• As per the underlying legal relationship, capital or goods must be moved from one country to another.

Arbitrability under International Arbitration Code: Pursuant to Article 1 of the Code, disputes relating to rights in rem concerning immovable properties located in Turkey and disputes that are not within the parties’ disposal are not suitable for arbitration. Disputes that are not within the parties’ disposal include disputes relating to family law, administrative law, criminal law, bankruptcy law and, to a large extent, employment law.

Appointment of Arbitrators under the International Arbitration Code: The Code contains default provisions as regards the appointment of arbitrators, in the event that the parties fail to decide on their arbitrators. And it should be reminded again that the Code is applicable for cases which have their seat in Turkey.

According to the Code, if the number of arbitrators is not determined, the tribunal shall consist of three arbitrators. If the parties cannot agree on the sole arbitrator, the appointment shall be done by the civil court of the first instance upon the request of one of the parties.

In case of a three arbitrator tribunal, each party shall appoint their arbitrators, who will then determine the third arbitrator to act as a chair. If one party does not appoint its arbitrator within the envisaged 30 days upon notification of the arbitration or the two arbitrators fail to agree on the third arbitrator, then the relevant civil court of the first instance is to make the appointments upon request of a party.

Validity of Arbitration Agreements in Turkey

According to the International Arbitration Code, the validity of the arbitration agreement is subject to the law agreed by the parties or, if there is no such law, to Turkish law. There are a few issues particular to Turkish law and the practice of the courts relating to the validity of arbitration agreements in setting aside or recognition and enforcement proceedings.

(i) Language of the Arbitration Agreement: According to the Law regarding Mandatory Use of Turkish in Economic Establishments, foreign companies must execute their contracts in Turkish when contracting with a Turkish company. Otherwise, there is a risk that the contract which entails the arbitration clause will not be taken into consideration to the benefit of the company. Therefore, in drafting contracts with an arbitration clause involving a Turkish company, it is advisable to draft in both Turkish and the foreign language.

(ii) Form of the underlying contract: If the underlying contract featuring the arbitration clause is subject to an official form (notarisation, transactions before land registry or trade registry) under Turkish law, such as contracts for the sale of immovable properties, motor vehicles, ships or aircraft, share sale agreements for limited companies and movable pledge agreements, then this form must be complied with to ensure the validity of the agreement to arbitrate.

(iii) Clear intention to arbitrate: To ensure the validity of the arbitration agreement, parties must draft their arbitration agreements or clauses carefully, so as to avoid any uncertainty regarding their intention to arbitrate. This is because, departing from the increasing tendency of many jurisdictions that favour upholding arbitration clauses even when they are unclear, the Turkish Court of Cassation consistently decides that the intention to arbitrate must be explicit, absolute, and certain.

Setting Aside of Arbitral Awards in Turkey

The losing party of an arbitral award, wishing to resist its execution in Turkey may apply to the regional courts of appeal in the place where the civil courts of the first instance who were competent to decide on claims relating to e.g. the validity of arbitration agreement, appointment and the challenge of arbitrators and collecting evidence are located, within 30 days from the notification of the award under the International Arbitration Code. The application for setting aside suspends the execution of the arbitral award, however, the applicant must deposit security.

It is a well-established principle of international arbitration law that there should be no review of the merits of the case during recognition and enforcement proceedings. In line with this principle, the Turkish Court of Cassation explicitly acknowledges the prohibition on the review of the merits. In addition, challenges to arbitral awards based on public policy are very rarely allowed.

Decisions of the regional courts of appeal on setting aside are subject to appeal under the Code of Civil Procedure.

Recognition and Enforcement of Arbitral Awards in Turkey

Turkey is a signatory to the New York Convention. Thus, arbitral awards rendered outside Turkey are to be recognized and enforced through the Convention, to the extent that the State where the award was rendered is also a signatory to the Convention. Where the New York Convention is not applicable due to the reservation mentioned, foreign arbitration awards are recognized and enforced under the International Private and Procedural Law No. 5718, whose provisions are very similar to the New York Convention.

The party wishing to have a foreign arbitral award recognized or enforced in Turkey must apply to the civil courts of the first instance with the original or certified copies of the arbitration agreement and the finalised award, together with their certified (notarised) Turkish translations.

It is a well-established principle of international arbitration law that there should be no review of the merits of the case during recognition and enforcement proceedings. In line with this principle, the Turkish Court of Cassation explicitly acknowledges the prohibition on the review of the merits. In addition, challenges to arbitral awards based on public policy are very rarely allowed.

After the court decides that the award is enforceable, the winning party can initiate execution proceedings based on the arbitral award.

General Procedures regarding ADR in Turkey

While the main Alternative Dispute Resolution in Turkey is arbitration, mediation is also becoming increasingly popular. Turkey continues to integrate mediation as an alternative dispute resolution method. From 1 January 2019, a mandatory mediation process has been introduced for monetary claims in commercial disputes as a prerequisite to applying to the commercial courts. This was following the introduction of a mandatory mediation mechanism for certain employment disputes from 1 January 2018.

Pursuant to the Law on Labor Courts and the Turkish Commercial Code, failure to mediate these disputes prior to litigation will result in the underlying cases’ rejection by the courts. The legislation governing mediation procedures is the Law on Mediation in Legal Disputes No. 6325. According to this Law, parties in a dispute can initiate mediation before or during legal proceedings. In addition, as per the Civil Procedural Code, judges have to encourage parties to settle disputes by way of mediation before initiating a lawsuit.

According to Turkish law, the arbitration clause has a very important role during the interpretation and/or implementation of any contract in Turkey. Considering the fact that arbitration is a very popular dispute resolution mechanism in Turkey the parties of any international or local contract should pay attention in terms of the drafting of an appropriate arbitration clause in their contracts in Turkey.

Especially foreign parties of a contract should receive advice from a well-known arbitration lawyer during their contract negotiation with their Turkish business partners. A Turkish arbitration attorney’s recommendations and revises can prevent future legal complexities and should protect the parties from unpredictable legal complications in terms of the interpretation of a business contract in Turkey.

When drafting an arbitration agreement or clause at the beginning of a long-term business relationship, it is important to bear in mind that a dispute may arise years after the contract between the parties has been entered into. Therefore, it is advisable that Clients consider at the outset:

whether all disputes are to be arbitrated or whether some disputes can be referred to litigation in Turkey,
whether the parties’ associates, affiliates, successors or assigns shall also be bound by the arbitration clause in Turkey,

whether non-contractual claims (i.e. unjust enrichment or tort claims relating to the underlying contract) shall be arbitrated in line with Turkish Law as well,
which laws will govern the arbitration in Turkey or abroad,
whether the arbitration will be ad hoc (i.e. not administered by an arbitral institution) or institutional according to Turkish Law,

whether the dispute should be resolved by one or three arbitrators in Turkey or abroad,
where the arbitration will take place (as the seat of arbitration determines important procedures relating to arbitration and whether the claim is arbitrable), in Istanbul, Paris, Milan, etc.
which language the arbitration shall be conducted in, Turkish, English, Italian or any other language
which rules are to be used by the arbitrators in resolving the dispute in Turkey
Have you consulted with a Turkish arbitration law expert the contract to avoid legal complexities

Standard Recommended Clauses by Institution:

While Clients may wish to refer their disputes to ad hoc arbitration to avoid bureaucracy and have more control over the arbitral procedure and costs of the arbitration, it has the disadvantage that its effectiveness relies heavily on the parties’ willingness to agree on the procedure to be followed when in most cases they are already in dispute. In contrast, in Turkish law arbitration institutions that administer the proceedings offer certain advantages that can be outlined as follows:

Main institutions constantly revise their rules to meet the evolving needs of arbitration proceedings in line with Turkish Law,
They ensure time and cost-effectiveness, thanks to their specialized and multilingual staff who oversee the proceedings where Turkish parties standing,
They offer more predictability of the proceedings and less procedural breakdowns, due to time-tested and clear institutional rules in compare with Turkish Courts
They have access to a wider pool of expert arbitrators and efficient mechanisms for their appointment in line with Turkish arbitration law requirements,

The enforcement of arbitral awards from the main institutions is easier before Turkish national courts.
A good Turkish arbitration lawyer and/or an expert arbitration law firm in Turkey should define a clear strategy to lead you in terms of which arbitration institutions would be convenient for your contract to secure the implementation of the contract that you are going to sign with your Turkish business partners.

As to which institution should be selected to administer the arbitration proceedings in Turkey, the answer largely depends on the rules provided by each institution and the needs of the parties regarding the involvement of the institution, time management, costs, and fees, etc. Please see the below presented links for model arbitration clauses of different institutions:

ICC
https://iccwbo.org/publication/standard-icc-arbitration-clauses-english-version/

CAM
https://www.camera-arbitrale.it/en/arbitration/arbitration-clauses.php?id=63

LCIA
https://www.lcia.org/Dispute_Resolution_Services/LCIA_Recommended_Clauses.aspx

Singapore International Arbitration Centre
https://www.siac.org.sg/67-model-clauses Disputes and International