ΕλληνικάThe judgment you already hold is not the answer you think it is
The most common misconception among foreign creditors is that a judgment obtained abroad can be handed to a Turkish enforcement office and acted upon. It cannot. Before any coercive step is possible, the foreign judgment must be recognized and declared enforceable by a Turkish court. That is a separate action, taking its own time, and it is where recoveries are most often lost.
There is, however, a more important point that runs the other way, and it is worth knowing before proceedings are started anywhere. For an ordinary money claim, Turkish law does not require a judgment at all.
Enforcement without a judgment
The Enforcement and Bankruptcy Code No. 2004 provides two routes. Enforcement with a judgment, ilamlı icra, proceeds on the basis of a court decision or an equivalent instrument. Enforcement without a judgment, ilamsız icra, allows a creditor to open enforcement proceedings against a debtor in Türkiye for an ordinary monetary debt without first obtaining any judgment.
For a foreign supplier owed money on unpaid invoices, that is frequently a faster and cheaper route than suing abroad and then seeking recognition. Proceedings are opened at the enforcement office, a payment order is served on the debtor, and if the debtor does not object within the statutory period the proceeding becomes final.
Under Article 62 of the Enforcement and Bankruptcy Code, an objection to an ordinary payment order must generally be filed within seven days of service and submitted to the enforcement office that issued the payment order. A timely objection generally suspends the ordinary enforcement proceeding.
Enforcement based on negotiable instruments is subject to a special regime. Under Article 168 the relevant period is generally five days; however, the competent authority, the procedural requirements and the effect on enforcement depend on the nature of the objection. Such objections may include a complaint that the instrument does not qualify as a negotiable instrument, an allegation that the signature does not belong to the debtor, or objections based on the absence or discharge of the debt, an extension of time, limitation or lack of jurisdiction.
When the debtor objects
Following an objection, the creditor’s available remedies depend on the type of enforcement proceeding and the supporting documents. Where the statutory documentary requirements are satisfied, the creditor may seek removal of the objection before the Enforcement Court; alternatively, an action for annulment of the objection may be brought before the competent court.
An application for removal of the objection is subject to the statutory periods under Articles 68 and following of the Code, while an action for annulment of the objection under Article 67 is generally subject to a one-year period. The distinction between the two should be kept clearly in mind.
The quality of the underlying paperwork tells here. Signed delivery notes, accepted invoices, acknowledgments of debt and correspondence in which the debt is admitted all improve the position substantially.
Recognition and enforcement of a foreign judgment
Recognition and enforcement are governed by the Act on Private International and Procedural Law No. 5718, at Articles 50 to 59. Turkish law distinguishes recognition, tanıma, which gives the foreign judgment res judicata and evidentiary effect, from enforcement, tenfiz, which authorises coercive execution.
The action is filed with the court at the debtor’s domicile in Türkiye. Where the debtor has no domicile, jurisdiction rests at the place of habitual residence and, failing that, with a court in Ankara, Istanbul or Izmir.
The court does not retry the merits. Its examination is confined to gateway conditions: that the judgment is final and binding where it was given; that reciprocity exists; that the foreign court was not exercising an exorbitant jurisdiction and that the matter did not fall within the exclusive jurisdiction of the Turkish courts; that the defendant was properly notified and had a fair opportunity to be heard; and that enforcement would not offend Turkish public order.
Reciprocity is one of the conditions under Article 54(1)(a). On reviewing the bilateral instruments between Türkiye and Greece, Germany and the United Kingdom, no specific bilateral treaty expressly governing the general recognition and enforcement of foreign court judgments between Türkiye and those jurisdictions has been identified. There are various bilateral judicial cooperation instruments concerning matters such as judicial assistance and exemption from security for costs, but those should not, without further qualification, be treated as direct evidence of reciprocity for the purposes of Article 54(1)(a). Reciprocity should therefore be assessed under the applicable legal framework and, where necessary, in light of the circumstances of the particular case.
On timing, the commonly cited period of six to eighteen months is a reasonable indicative estimate for planning purposes but is not a statutory or guaranteed timeframe. Turkish law prescribes no fixed duration for recognition and enforcement proceedings, and the actual duration may vary with the workload of the competent court, the nature and complexity of the case, service of process, the conduct of the parties and any appellate proceedings.
Public order is the ground most often raised by a resisting debtor, and it is not a general invitation to reopen the dispute. Turkish courts apply it narrowly.
Arbitral awards are treated more favorably
Türkiye has been a party to the New York Convention since 1992, with the customary reciprocity and commercial reservations, and in practice those reservations rarely obstruct enforcement of an award made in another contracting state in a commercial matter.
An arbitral award is therefore generally easier to enforce in Türkiye than a foreign court judgment. Refusal is available only on the narrow grounds set out in the Convention and in the corresponding provision of Law No. 5718.
For any party negotiating a contract with a Turkish counter-party today, that is a drafting point rather than a litigation point. An arbitration clause materially improves the enforcement position in Türkiye compared with a foreign jurisdiction clause.
Awards under the ICSID Convention follow a separate route. Although binding, they are not executed directly through the enforcement office; an application must first be made to the competent Turkish court.
Mandatory mediation
Article 5/A of the Turkish Commercial Code provides that mandatory mediation is a condition of action for specified commercial disputes, including monetary claims, compensation claims, actions for annulment of an objection, negative declaratory actions and restitution actions. The mediation process must generally be completed within six weeks from the mediator’s appointment, with a possible extension of up to two additional weeks in mandatory cases.
Mandatory mediation is not a prerequisite for initiating an ordinary enforcement proceeding. It may become relevant where, following an objection, the creditor brings an action for annulment of the objection and the dispute falls within the scope of Article 5/A.
As regards recognition and enforcement proceedings concerning foreign court judgments or arbitral awards, Turkish legislation does not contain an express and comprehensive provision stating that mandatory mediation is required or excluded. Recent appellate case law and commentary generally support the position that a recognition and enforcement action should not be treated as a substantive monetary or compensation claim falling within Article 5/A, particularly because the Turkish court does not reconsider the merits of the underlying dispute. Since the issue is not expressly regulated, the procedural position should be assessed case by case. For foreign arbitral awards, Article 18/A(18) of the Mediation Act concerning arbitration agreements should also be taken into account.
As a precautionary measure, where there is uncertainty regarding the procedural requirements or a potential risk of loss of rights, the parties may consider commencing mediation before filing a recognition and enforcement action. They should not, however, assume that the suspension of limitation periods applicable to mandatory mediation will apply where the mediation is ultimately considered voluntary, and any applicable statutory time limits should be assessed separately and preserved.
Where the parties fail to reach agreement in commercial mediation, Turkish law does not prescribe an additional specific forfeiture period running from the date of the final mediation report for commencing litigation. That does not affect the statutory time limits applicable to the underlying claim or remedy.
Securing the position before the debtor moves
Recovery frequently turns not on the strength of the claim but on whether anything remains to enforce against by the time the creditor is entitled to act. Turkish procedure provides for precautionary attachment, and where there is reason to believe assets will be dissipated the application should be considered at the outset. Asset investigation belongs at the same stage.
A reasonable sequence
Establish first what the debtor actually holds in Türkiye and whether the claim is worth enforcing. Then assess the documentary position, because it determines whether enforcement without a judgment is available and by which route and how quickly an objection could be overcome. Consider precautionary attachment before the debtor is alerted. Where a foreign judgment or award already exists, assess the reciprocity position and the finality of the decision before incurring the cost of a recognition action. And where a contract is still being negotiated, settle the dispute resolution clause with enforcement in Türkiye in mind.
Frequently asked questions
Can I enforce my foreign judgment directly in Türkiye? No. It must first be recognised and declared enforceable by a Turkish court under Law No. 5718 before any enforcement step is possible.
Do I need a judgment at all? Often not. For an ordinary money claim, Turkish law allows enforcement proceedings to be opened without any judgment.
How long is the objection period? In ordinary proceedings, generally seven days from service, filed with the enforcement office that issued the payment order. For enforcement based on negotiable instruments the period is generally five days, and the competent authority and consequences depend on the nature of the objection.
What can I do if the debtor objects? Where the documentary requirements are satisfied you may seek removal of the objection before the Enforcement Court; alternatively an action for annulment of the objection may be brought, generally subject to a one-year period.
Is an arbitral award easier to enforce than a court judgment? Generally yes. Türkiye is a party to the New York Convention and refusal is available only on narrow grounds.
Is mediation compulsory? It is a condition of action for specified commercial disputes, but it is not a prerequisite for initiating an ordinary enforcement proceeding. For recognition and enforcement actions the position is not expressly regulated and should be assessed case by case.
Contact OIKONOMAKIS LAW, in collaboration with Av. Arb. Necmiye Bildirir.
leads@oikonomakislaw.com / +90 534 461 62 44
This publication provides general legal information and does not constitute legal advice on any individual matter. Turkish enforcement and procedural law, the applicable time limits and the reciprocity position are subject to change, and the position should be verified in relation to the specific claim and debtor concerned. Assessment of a specific matter requires advice from a lawyer qualified in Türkiye.
Prepared through the collaboration of Christos Oikonomakis and Av. Arb. Necmiye Bildirir, OIKONOMAKIS LAW