In enforcement proceedings without a judgment (ilamsız icra takibi), if the debtor objects within seven days of service of the payment order (ödeme emri), the proceedings stop automatically (Enforcement and Bankruptcy Law (İİK) art. 66). The debtor does not even need to give reasons for the objection. For the creditor to continue the proceedings, the objection must be set aside. There are two ways to do this.
Two routes: removal of objection and annulment of objection
Removal of objection (itirazın kaldırılması, İİK art. 68): If the claim is based on a document whose signature the debtor acknowledges, or on an official document, the creditor may ask the enforcement court (icra mahkemesi) to remove the objection. This route is fast but limited to documents; no witnesses are heard and no detailed examination is made. The time limit is six months from service of the objection.
Annulment of objection (itirazın iptali, İİK art. 67): The creditor files a lawsuit in the ordinary courts within one year of service of the objection and proves the claim with any kind of evidence. Invoices, current account records, commercial books, email correspondence, witnesses and expert examination can all be used in this lawsuit. In practice this is the most commonly used route.
Which court hears it?
An action for annulment of objection is filed at the court with jurisdiction according to the nature of the claim:
- For commercial claims, the commercial court of first instance (asliye ticaret mahkemesi),
- For claims arising from consumer transactions, the consumer court (tüketici mahkemesi),
- For employee claims, the labour court (iş mahkemesi),
- For other claims, the civil court of first instance (asliye hukuk mahkemesi) or, depending on the monetary threshold, the civil court of peace (sulh hukuk mahkemesi).
Do not forget the mediation requirement
If the claim arises from a commercial dispute, a consumer transaction, an employment relationship or a lease agreement, applying to a mediator before filing the action for annulment of objection is a procedural precondition for the lawsuit. A lawsuit filed without going to a mediator is dismissed on procedural grounds.
From the date of application to the mediation office until the date of the final report, the one-year time limit for filing the lawsuit does not run (Mediation in Civil Disputes Law (HUAK) art. 18/A(15)). Even so, mediation should not be left to the last days of the period.
What if the one year is missed?
A creditor who misses the time limit for annulment of objection does not lose the claim; they may file an ordinary claim lawsuit (alacak davası) under the general rules (İİK art. 67(5)). In that case, however, the existing proceedings do not continue automatically, new proceedings must be started with the judgment obtained, and compensation for bad-faith denial cannot be claimed.
Compensation for bad-faith denial (icra inkâr tazminatı)
If the action for annulment of objection is upheld and the debtor’s objection is found to be unjustified, the debtor is ordered to pay the creditor compensation for bad-faith denial of not less than twenty per cent of the amount awarded (İİK art. 67(2)). If the proceedings are found to be unjustified and in bad faith, it is the creditor who is ordered to pay compensation at the same rate.
According to Court of Cassation (Yargıtay) practice, for compensation for bad-faith denial to be awarded the claim must be liquid, that is, calculable or determinable by the debtor. For claims whose amount can only be determined through a trial (for example, compensation claims requiring an expert’s calculation), this compensation may not be available.
If the objecting debtor is a parent acting as legal representative, a guardian or an heir, bad faith must also be proved before compensation can be awarded.
Checklist for the creditor
- Note the date of service of the objection; the one-year time limit runs from this date.
- If the claim is based on a document, consider the removal of objection route first.
- Identify the competent court and the mediation requirement before filing the lawsuit.
- Have ready the records showing that the invoices were served and not objected to, current account reconciliations and commercial books.
- The interest start date and rate in the request for enforcement should be set so that they can be defended in exactly the same way in the lawsuit.
If you are on the debtor’s side, we explain your rights against a payment order in this article.
This article is for general information only and is not legal advice. For your specific situation, please seek advice from a lawyer.