Strategic Asset Protection in Türkiye: Securing Your Claims Before International Arbitration

Winning an international arbitration award is a significant milestone, but in the world of cross-border trade, a victory on paper is meaningless if the debtor’s accounts are empty by the time the final award is rendered. For foreign creditors dealing with Turkish entities, the risk of asset dissipation is a reality that requires immediate, proactive legal measures.

This is where Pre-Arbitration Attachment (İhtiyati Haciz) becomes your most powerful strategic tool in the Turkish legal landscape.

Does an Arbitration Clause Block Local Court Relief?

A common misconception among foreign investors is that a London or ICC arbitration clause prevents them from seeking help from Turkish courts. However, pursuant to Article 6 of the International Arbitration Law (MTK), the existence of an arbitration agreement does not preclude a party from requesting interim measures or attachments from local courts before or during the proceedings.

Case Study: Navigating Jurisdiction and Venue in Bursa

Imagine a scenario where a foreign supplier is facing a payment dispute with a major industrial manufacturer based in Bursa. The debtor has stopped responding to communications—a clear red flag. To secure the claim, a "Pre-judgment Attachment" must be initiated.

1. The Jurisdiction and Competence Maze

While the courts in Bursa have jurisdiction because the debtor is headquartered there, determining the competent court is a nuanced technical task. One must carefully evaluate the distinction between Civil Courts of General Jurisdiction (Asliye Hukuk) and Commercial Courts (Asliye Ticaret). Under the MTK, filing in the wrong court can lead to procedural dismissals, giving the debtor a "window of opportunity" to move assets.

2. The Standard of Proof and Security (Cautionary Deposit)

Turkish courts require "prima facie" evidence—meaning you must demonstrate that the debt likely exists and there is a risk of non-payment. Generally, courts grant attachment orders upon the claimant posting a security deposit, typically ranging between 15% and 30% of the claim amount.

3. The "30-Day Golden Rule"

Timing is everything. Once an attachment is executed, you have a strict 30-day window to initiate the arbitration proceedings (or prove they have started) and notify the Execution Office. Missing this deadline by even twenty-four hours results in the automatic lifting of all liens and freezes.

The Judiciary’s Stance: Protecting the Creditor

The Turkish Court of Cassation (Yargıtay) has consistently upheld the right of creditors to obtain attachments even before an international award is recognized or enforced in Türkiye. In an era of economic volatility, the courts view a debtor's silence or lack of cooperation as a legitimate ground for securing the creditor's rights.

Conclusion: Don't Settle for a Paper Victory

Arbitration is a marathon, but the attachment is the sprint that ensures there is a prize waiting at the finish line. In industrial hubs like Bursa, securing assets through the correct court—backed by a precise jurisdictional analysis—is often the difference between full recovery and a total loss.

At Turkish Trade Lawyers (TTL), we bridge the gap between international arbitration and local enforcement. We ensure your legal strategy is not just about winning the case, but about securing the asset.