CIVIL PROCEDURAL LAW

PART ELEVEN

Arbitration

Scope of implementation

ARTICLE 407- (1) Provisions in this Part shall be applied to disputes that do not involve any foreign element as defined by the Code of International Arbitration dated 21/6/2001 and numbered 4686, and for which the seat of arbitration is determined as Turkey.

Eligibility for arbitration

ARTICLE 408- (1) Disputes arising from rights attached to real properties and matters on which the parties may not freely act are not eligible for arbitration.

Waiver of right to object

ARTICLE 409– (1) If a provision, regarding which the parties may agree otherwise or the arbitration agreement is not complied with, the relevant party may object to this breach. If the relevant party fails to make this objection within two weeks, or the time to be determined by the arbitrators on this matter, from the date he learned about the breach, it shall be assumed that he has waived his right to object.

Proper court in arbitration with respect to subject-matter jurisdiction and venue

ARTICLE 410- (1) The proper court with respect to subject-matter jurisdiction and venue regarding proceedings that are stated to be carried out by the court in arbitration proceedings, is either the civil court of general jurisdiction or the commercial court in the place of the arbitration proceedings.  If the place of the arbitration proceedings is not determined, the proper court with respect to subject-matter jurisdiction is either the civil court of general jurisdiction or the commercial court and venue is the domicile, residence or place of business of the defendant in Turkey.

Assistance of court

ARTICLE 411- (1) Court assistance in arbitration proceedings is permitted only in circumstances that are expressly allowed in this Part.

Definition and form of arbitration agreement

ARTICLE 412- (1) Arbitration agreement is a contract that the parties agree on the resolution of a part of or all present or possible future disputes arising from a contractual or non-contractual legal relationship by an arbitrator or an arbitral tribunal.

(2) Arbitration agreement may be made as a clause of a contract between the parties or as a stand-alone contract.

(3) Arbitration agreement must be made in writing. In order for the condition of written form to be fulfilled, it is adequate that the parties have included the agreement in a document signed by the parties or a means of communication between the parties such as letter, telegram, telex, fax, or the electronic media, or that the defendant has not raised an objection in the answer pleading to the assertion of the existence of a written arbitration agreement made in the complaint. If a referral was made to a document containing an arbitration clause with the purpose of rendering it a part of the principle contract, it shall be assumed that an arbitration agreement has been made.

(4) An objection asserting that the principle agreement is invalid or the arbitration agreement was made regarding a dispute that is not yet arisen may not be raised.

(5) In the event that the parties agree on applying to arbitration during court proceedings, the court shall refer the case file to the relevant arbitrator or the arbitral tribunal.

Arbitration objection

ARTICLE 413- (1) If an action is filed in the court regarding a dispute that constitutes the subject of an arbitration agreement, the opposing party may raise a preliminary objection. In this case, if the arbitration agreement is not void, ineffective or impossible to apply, the court shall uphold the objection and dismiss the action on procedural grounds.

(2) Raising an arbitration objection shall not prevent arbitration proceedings from being carried out.

Provisional remedy and preliminary discovery of evidence

ARTICLE 414- (1) Unless otherwise agreed, the arbitrator or the arbitral tribunal may grant provisional remedy or preliminary discovery of evidence during arbitration proceedings, upon the request of a party. The arbitrator or the arbitral tribunal may ask for an appropriate security in order to grant provisional remedy.

(2) The court, upon the request of a party, shall order the enforceability of the provisional remedy granted by the arbitrator or the arbitral tribunal, provided that there is a valid arbitration agreement.

(3) Each party may request provisional remedy or preliminary discovery of evidence from the court in circumstances that the arbitrator or the arbitral tribunal or another person to be commissioned by the parties cannot act on time or effectively. If such a circumstance does not exist, a request from the court may only be made upon the permission of the arbitrator or the arbitral tribunal or based on the written agreement between the parties on this matter.

(4) The provisional remedy granted by the court upon the request of a party before or during arbitration proceedings shall be removed automatically when the arbitration award becomes enforceable or upon the rejection of the claim by the arbitrator or the arbitral tribunal, unless otherwise decided.

(5) Provisional remedy granted by the court may be modified or removed by the arbitrator or the arbitral tribunal.

Number of arbitrators

ARTICLE 415- (1) The parties may determine the number of arbitrators freely. However, it must be an odd number.

(2) If the number of arbitrators is not determined by the parties, three arbitrators must be selected.

Selection of arbitrators

ARTICLE 416– (1) The parties may determine the selection procedure of the arbitrator or the arbitrators freely. Unless otherwise agreed by the parties, the procedure stated below shall be applied in the selection of the arbitrator:

  1. a) Only natural persons may be selected as arbitrator.
  2. b) If one arbitrator is to be selected and the parties cannot agree on the selection, the arbitrator shall be selected by the court, upon the request of a party.
  3. c) If three arbitrators are to be selected, each party must select an arbitrator; and the two arbitrators selected as such shall determine the third arbitrator. If a party fails to select his arbitrator within one month from the date that he received the request of the other party on this matter or if the selected arbitrators fail to determine the third arbitrator within one month from the date that they were selected, the court shall make the selection, upon the request of a party. The third arbitrator shall act as the chairman.

ç) If more than three arbitrators are to be selected, the arbitrators to determine the final arbitrator shall be selected by the parties in equal number according to the procedure stated in the preceding sub-paragraph.

  1. d) If more than one arbitrator is to be selected, at least one of the arbitrators shall be a jurist with an experience of five years or more in his field of expertise.

(2) Even though the selection procedure of the arbitrators had been determined by the parties;

  1. a) If a party fails to comply with the agreement,
  2. b) If the parties or the selected arbitrators fail to decide unanimously on the selection of the arbitrators, even though they were required to do so according to the procedure previously agreed on,
  3. c) If the third party person, organization or authority charged with the selection of the arbitrators fails to select the arbitrator or the arbitral tribunal,

selection of the arbitrator or the arbitral tribunal shall be made by the court, upon the request of a party. Decisions rendered by the court on this matter, upon hearing the parties where necessary, according to the provisions of this paragraph may not be subjected to any appellate remedy. The court shall take the agreement between the parties and the requisite for the arbitrators to be impartial and independent into consideration while selecting the arbitrators. Same procedure shall also be applied in circumstances in which more than three arbitrators are to be selected.

Grounds for recusal

ARTICLE 417– (1) The person selected as an arbitrator shall disclose the circumstances and matters that justify doubt over his impartiality and juridical independency, prior to accepting the duty. The arbitrator shall also immediately disclose the matters that came up later to the parties, if the parties were not informed beforehand.

(2) The arbitrator may be recused if he lacks the qualifications set by the parties or if a ground for recusal is present according to the procedure that the parties have chosen or circumstances or matters have come up to justify doubt over his impartiality and juridical independency. Recusal of an arbitrator by the party that has selected or has participated in the selection that arbitrator may only be requested regarding the recusal grounds learned after the appointment of the arbitrator.

Procedure for recusal of arbitrator

ARTICLE 418– (1) The parties may determine the procedure for recusal of the arbitrator freely.

(2) The party seeking the recusal of the arbitrator must make a request for recusal within two weeks from the date in which the arbitrator or the arbitral tribunal is selected or the party has learned that a circumstance came up upon which he may recuse the arbitrator; and he must notify the other party in written form regarding the request. If the arbitrator that is recused fails to withdraw or if the other party does not accept the recusal, the arbitral tribunal shall decide on the matter.

(3) The party seeking the recusal of one or more of the arbitrators from the arbitral tribunal must state the request and its reasons to the arbitral tribunal. The party that has learned, that his request for recusal was rejected, may apply to the court within one month from the date of the decision, and request the removal of the decision and rendition of a decision by the court regarding the request for the recusal of the arbitrator or the arbitrators.

(4) Recusal of the arbitrators resulting in complete elimination or loss of quorum of the selected arbitrator or the arbitral tribunal must be requested from the court. Decisions to be rendered by the court according to this paragraph may not be subjected to any appellate remedy.

(5) If the request for recusal of the arbitrators resulting in complete elimination or loss of quorum of the selected arbitrator or the arbitral tribunal is accepted by the court, arbitration shall be terminated. However, if the names of the arbitrator or the arbitrators were not determined in the arbitration agreement, selection of new arbitrators shall be carried out.

Liability of arbitrators

ARTICLE 419– (1) Unless otherwise determined by the parties, if the arbitrator that has accepted the duty in arbitration proceedings refrains from carrying out the duty without a justifiable reason, he is obliged to compensate the damages that the parties have suffered on account of this refrain.

Not being able to perform the duty

ARTICLE 420– (1) Arbitral duty of an arbitrator that is not able to perform his duty on account of legal or factual impediments is terminated upon his withdrawal or the agreement of the parties on this matter.

(2) If there is a dispute between the parties regarding the existence of reasons necessitating the withdrawal of the arbitrator, each party may request from the court for a decision to be made regarding termination of the powers of the arbitrator. Decisions to be rendered by the court are unappealable.

(3) Withdrawal of the arbitrator or the other party’s consent on the termination of the powers of the arbitrator shall not imply an admission of the reasons for recusal.

Selection of new arbitrator

ARTICLE 421– (1) If the arbitral duty of an arbitrator is terminated for any reason, a new arbitrator must be selected to replace the arbitrator in question, according to the selection procedure thereof.

(2) Time spent for the substitution of one or more arbitrators shall not be considered in the computation of the duration of arbitration.

(3) If the names of the arbitrator or the arbitrators are determined in the arbitration agreement, arbitration shall be terminated should the duties of the arbitrator, the arbitral tribunal or the quorum thereof are terminated for any reason.

Authority of arbitrator to decide on his own competence

ARTICLE 422– (1) The arbitrator and the arbitral tribunal may decide on their own competence, including the objection regarding the existence or validity of the arbitration agreement. The arbitration clause in a contract shall be evaluated apart from the remainder of the contract in question while the decision is being made. The decision of the arbitrator or the arbitral tribunal declaring the principle agreement invalid shall not imply the invalidity of the arbitration agreement in its own right.

(2) Objection regarding lack of competence of the arbitrator or the arbitral tribunal must be raised with the answer pleading at the latest. The fact that the parties have selected or participated in the selection the arbitrators shall not remove their rights to object on grounds of lack of competence of the arbitrator or the arbitral tribunal.

(3) Objection asserting that the arbitrator or the arbitral tribunal exceeded its authority must be raised immediately.

(4) In both circumstances stated above, if the arbitrator or the arbitral tribunal decides that the delay is justifiable, it may accept the objection that was not raised in due time.

(5) The arbitrator or the arbitral tribunal shall examine and resolve the objection regarding the lack of competence as a preliminary question; if the arbitrator or the arbitral tribunal decides that it is competent, it shall continue the arbitration proceedings and resolve the case.

Equality of parties and right to be duly heard

ARTICLE 423- (1) The parties share equal rights and powers in arbitration proceedings. Parties shall be given the opportunity to be duly heard.

Determination of procedure

ARTICLE 424- (1) The parties, without prejudice to the mandatory provisions in this Part, may agree on the rules regarding the procedure to be carried out by the arbitrator or the arbitral tribunal freely, or determine the rules by making a referral to arbitration rules. If such an agreement between the parties does not exist, the arbitrator or the arbitral tribunal shall execute the arbitration proceedings in a way it deems appropriate, with taking the provisions in this Part into consideration.

Place of arbitration proceedings

ARTICLE 425- (1) Place of the arbitration proceedings may be determined by the parties or an arbitration organization of their choosing freely. If such an agreement on the matter does not exist, place of the arbitration proceedings shall be determined by the arbitrator or the arbitral tribunal according to the features of the case.

(2) The arbitrator or the arbitral tribunal, in circumstances that the arbitration proceedings necessitate and with notifying the parties beforehand, may also convene and carry out proceedings, such as hearing and inspection, in another place.

Date of commencement

ARTICLE 426- (1) Unless otherwise agreed by the parties, the arbitration proceedings shall be deemed commenced at the date in which; the application to the court or the person, organization or authority charged by the parties for the selection of the arbitrators is made; the plaintiff has selected an arbitrator and notified the other party to make his selection if the selection of the arbitrators is to be made by the parties; or the request for resolution of the dispute by way of arbitration is received by the opposing party if the names of the arbitrator or the arbitrators forming the arbitral tribunal were determined in the arbitration agreement.

(2) If a party is granted provisional remedy or provisional attachment by the court, he shall commence the arbitration proceedings within two weeks. Otherwise, the provisional remedy or the provisional attachment shall be removed automatically.

 

Duration of arbitration

ARTICLE 427– (1) Unless otherwise agreed by the parties, an arbitration award shall be made by the arbitrator or the arbitral tribunal within one year from the date the arbitrator is selected in case a single arbitrator is to perform the duty; and from the date in which the initial meeting record has been prepared in case the duty is to be performed by an arbitral tribunal.

(2) Duration of arbitration may be extended upon the agreement of the parties or by the court if the parties could not agree. The decision of the court on this matter is unappealable.

Complaint and answer pleadings

ARTICLE 428– (1) Within the time agreed by the parties or determined by the arbitrator, the plaintiff must submit the facts on which the claim is based and his demand along with the arbitration agreement or the principle contract containing the arbitration clause; and the defendant must submit his defense, along with the facts he asserts, with a pleading to the arbitrator or the arbitral tribunal.

(2) The parties may attach the written evidence that they offer to their pleadings and show the evidence that they will present later on.

(3) Unless otherwise agreed, the parties may change or expand their claims and defenses during arbitration proceedings. However, the arbitrator or the arbitral tribunal may not permit this change or expansion upon considering the late execution of the party proceeding, the great and unjust complication it has caused to the other party and other circumstances and conditions. Claim or defense may not be changed or expanded as to get beyond the scope of the arbitration agreement.

Holding hearings or examination on case file

ARTICLE 429- (1) The arbitrator or the arbitral tribunal may either decide to hold hearings for reasons such as presentation of evidence, examination of oral statements or request for expert examination; or limit the proceedings to an examination on the case file. Unless otherwise agreed by the parties, the arbitrator or the arbitral tribunal shall decide to hold a hearing at an appropriate stage of the proceedings, upon the request of a party.

(2) The arbitrator or the arbitral tribunal shall inform the parties in due time regarding the dates of all sorts of inspections about the case, meetings and hearings to be held for the examination of experts or other evidence and the consequences of party absence in said meetings and hearings.

(3) The parties shall be informed about the pleadings, information and other documents that are presented to the arbitrator or the arbitral tribunal.

Absence of a party in proceedings

ARTICLE 430– (1) If a party fails to attend the proceedings, provisions stated below shall be applied:

  1. a) If the plaintiff fails to submit the complaint within due time without showing a valid reason or if the complaint is not in due form and the deficiency is not corrected within the time allowed by the arbitrator or the arbitral tribunal, the arbitrator or the arbitral tribunal shall terminate the arbitration proceedings.
  2. b) If the defendant fails to submit the answer; this shall not be considered as admission of plaintiff’s assertions or the acknowledgement of plaintiff’s claim, and the proceedings shall be continued.
  3. c) If a party fails to attend a hearing without showing a valid reason or refrains from presenting evidence he previously offered; the arbitrator or the arbitral tribunal may continue the arbitration proceedings and make an award upon examining available evidence.

Selection of expert by arbitrator of arbitral tribunal

ARTICLE 431- (1) The arbitrator or the arbitral tribunal may decide on;

  1. a) Selection of one or more experts to prepare a report on matters determined by the arbitrator or the arbitral tribunal.
  2. b) Necessary explanations to be made and documents and information to be presented by the parties to the expert.
  3. c) An inspection to be carried out.

(2) Unless otherwise agreed, following the presentation of their written or oral report, the experts shall attend the hearing to which they are invited, upon the request of a party or the consideration of the arbitrator or the arbitral tribunal. The parties may ask questions to the experts at this hearing and also have the experts whom they have chosen examined regarding the dispute.

Gathering evidence

ARTICLE 432– (1) Each party may seek court assistance in gathering evidence upon the approval of the arbitrator or the arbitral tribunal.

Decision-making of arbitral tribunal

ARTICLE 433- (1) Unless otherwise agreed by the parties, the arbitral tribunal may make an award with a majority vote.

(2) If the parties or the other members of the arbitral tribunal have authorized, the chairman of the arbitral tribunal may render decisions on his own, regarding specific matters of procedure.

(3) The arbitrator or the arbitral tribunal may make an arbitration award based on equity rules or amicable resolution only if the parties have expressly authorized to do so.

Settlement

ARTICLE 434– (1) If the parties reach a settlement regarding the subject matter of the dispute during the arbitration proceedings, the proceedings shall be terminated. If the request of the parties is not against moral values or public policy; and it is regarding a matter eligible for arbitration, the settlement shall be confirmed as an arbitration award.

Termination of arbitration proceedings

ARTICLE 435– (1) Arbitration proceedings shall be terminated upon making an arbitration award or upon the occurrence of one of the circumstances stated below:

  1. a) If the plaintiff withdraws his claim with the exception of recognition of the arbitrator or the arbitral tribunal, upon the objection of the defendant, that the defendant has legal interest in the resolution of the dispute.
  2. b) If the parties agree on terminating the proceedings.
  3. c) If the arbitrator or the arbitral tribunal decides that resuming the proceedings is unnecessary or impossible based on another reason.

ç) If the court denies the request for extension of the duration of arbitration according to the second paragraph of article 427.

  1. d) If the arbitral tribunal cannot reach a unanimous decision in the event that the parties have determined as such.
  2. e) If the advance for expenses according to the second paragraph of article 442 is not deposited.

(2) Authority of the arbitrator or the arbitral tribunal shall be removed automatically upon the termination of the proceedings, without prejudice to the provision in article 437.

Form and scope of arbitration award and safekeeping thereof

ARTICLE 436- (1) Arbitration awards shall contain;

  1. a) Names and surnames of the arbitrator or the members of the arbitral tribunal making the award.
  2. b) Names, surnames, titles and addresses of the parties and if any, their representatives and attorneys.
  3. c) Legal grounds and reasoning of the award.

ç) Obligations imposed on or rights bestowed upon the parties with enumeration in a clear and exact manner, and arbitration costs.

  1. d) Notice for the availability of an action for invalidation against the award and time requirement thereof.
  2. e) Place of the arbitration proceedings and date of the award.
  3. f) Signature of the arbitrator or signatures of all or the participating members of the arbitral tribunal and the dissenting vote, if it is attached to the award.

(2) Unless otherwise agreed, the arbitrator or the arbitral tribunal may make partial awards.

(3) The parties shall be notified of the arbitration award by the arbitrator, the chairman of the arbitral tribunal or the relevant arbitral institution. The original document containing the award shall be sent to the court along with the case file and kept by the court.

Clarification, correction and completion of arbitration awards

ARTICLE 437– (1) Unless a different time requirement is determined beforehand, each party, within two weeks from the date he is notified of the award, may apply to the arbitrator or the arbitral tribunal, on condition that the other party is notified, and request;

  1. a) Correction of computation, spelling and similar factual errors in the arbitration award.
  2. b) Clarification of a specific matter regarding the award or a section thereof.

(2) If the arbitrator or the arbitral tribunal, upon conferring with the opposing party, decides that the request is justified, it shall correct the error in the award or clarify the award within one month from the date of the request. This time limit may be extended by the arbitrator or the arbitral tribunal where necessary.

(3) The arbitrator or the arbitral tribunal may also correct the factual errors in the award within two weeks from making the award on its own initiative.

(4) Each party, within one month from the date he is notified of the award, may apply to the arbitrator or the arbitral tribunal, on condition that the other party is notified, and request a supplementary award on undecided matters that were asserted during the proceedings.  If the arbitrator or the arbitral tribunal decides that the request is justified, it shall make a supplementary award within one month. This time limit may be extended up to one month by the arbitrator or the arbitral tribunal where necessary.

(5) Decisions regarding correction, clarification and supplementary awards shall be declared to the parties and constitute a part of the arbitration award.

Service

ARTICLE 438– (1) Unless otherwise agreed by the parties, service shall be carried out according to the provisions of the Law of Service dated 11/2/1959 and numbered 7201.

Action for invalidation

ARTICLE 439- (1) Sole remedy against the arbitration award is to file an action for invalidation. Action for invalidation must be filed in the circuit court of appeals at the place of the arbitration proceedings; and it shall be resolved primarily and as soon as possible.

(2) Arbitration awards may be invalidated if it is determined that;

  1. a) One of the parties did not have legal capacity or the arbitration agreement was invalid.
  2. b) Selection process of the arbitrator or the arbitral tribunal was not carried out according to the provisions of the agreement or this Section.
  3. c) The award was not made within the duration of arbitration.

ç) The arbitrator or the arbitral tribunal has decided that it was competent or not, as contrary to the law.

  1. d) The arbitrator or the arbitral tribunal has made an arbitration award outside the scope of the arbitration agreement or failed to make a ruling regarding the entirety of the claim or exceeded its authority.
  2. e) The arbitration proceedings were not carried out according to the provisions determined with the agreement, or the provisions of this Part if no procedural rules were agreed upon by the parties; and this violation was effective on the merits of the award.
  3. f) The principle of equality of the parties and the right to be duly heard were violated.
  4. g) The dispute that is the subject of the arbitration award is not eligible for arbitration under Turkish law.

ğ) The award is against public policy.

(3) Regarding an action for invalidation that is filed with the claim that the award is made outside the scope of the arbitration agreement, if the matters within the scope of the arbitration agreement can be separated from the ones that are not, only the section of the arbitration award that involves the matters outside the scope of the arbitration agreement may be invalidated.

(4) Action for invalidation may be filed within one month. This time limit begins from the date in which the parties are notified of the award or the decisions regarding correction, clarification or supplementation of the award. Filing an action for invalidation against an arbitration award shall not stay the enforcement of the award. However, the enforcement of the award may be stayed upon the request of a party, against a security to cover the amount or value of the award.

(5) Request for invalidation shall be resolved limited to examination on the case file, unless otherwise is determined by the circuit court of appeals trying the action.

(6) Decisions rendered regarding an action for invalidation may be appealed. Appellate review shall be carried out primarily and as soon as possible, limited to the grounds for invalidation stated in this article. Appeal shall not stay the enforcement of the award.

(7) In case the invalidation request is granted, the arbitrators and the duration of arbitration may be determined again if the decision is not appealed or the invalidation is based on grounds stated in sub-paragraphs (b), (c), (ç), (d), (e) and (f) of the second paragraph, unless otherwise agreed by the parties. The parties may appoint previous arbitrators if they wish so.

Arbitrator fee

ARTICLE 440- (1) Unless otherwise agreed by the parties, fees of the arbitrators shall be determined between the arbitrator or the arbitral tribunal and the parties, according to the value of the claim, features of the dispute and duration of the arbitration proceedings.

(2) The parties may determine the fee of the arbitrator or the arbitral tribunal with making referral to established or institutional arbitration rules.

(3) Fee of the arbitrator or the arbitral tribunal shall be determined according to the fee tariff issued annually by the Ministry of Justice, after conferring with the relevant professional associations with public institution status, if the parties and the arbitrator or the arbitral tribunal cannot agree on the fee or if there are no provisions regarding determination of the fee in the arbitration agreement or if no referrals were made to established or institutional arbitration rules by the parties.

(4) Unless otherwise agreed by the parties, fee of the chairman shall be determined as more than ten percent of the fee to be paid to the members of the arbitral tribunal.

(5) Unless otherwise agreed, no extra arbitrator’s fee is required to be paid for correction, clarification or supplementation of arbitration awards.

(6) Costs in arbitration proceedings shall be designated in the arbitration award.

Costs in arbitration proceedings

ARTICLE 441- (1) Costs in arbitration proceedings shall comprise;

  1. a) Fees of the arbitrators and the fee of the arbitral secretary to be determined by the arbitrators.
  2. b) Travel and other expenses of the arbitrators.
  3. c) Fees paid to the experts appointed by the arbitrators and other persons whose assistance were sought, and inspection expenses.

ç) Travel and other expenses of the witnesses within the limit of the arbitrator’s or the arbitral tribunal’s approval.

  1. d) Attorney fee to be determined by the arbitrator or the arbitral tribunal according to the tariff on minimum fee for attorneys, for the attorney of the prevailing party if he had one.
  2. e) Judicial fees to be collected regarding the requests that are made to the courts according to this Statute.
  3. f) Service expenses regarding arbitration proceedings.

 

Deposit of advance and payment of costs

ARTICLE 442– (1) The arbitrator or the arbitral tribunal may order each party to deposit an advance for costs in proceedings where necessary. Unless otherwise agreed, this advance must be deposited by the parties in equal.

(2) If the advance is not deposited within the time limit set in the decision of the arbitrator or the arbitral tribunal, the arbitrator or the arbitral tribunal may stay the proceedings. If the advance is deposited within one month from the date in which the parties are notified of the stay, the proceedings shall be continued; otherwise the arbitration proceedings shall be terminated.

(3) The arbitrator or the arbitral tribunal shall issue a document showing the purpose and amount of the advance that was used to the parties, and return any unused amount to the depositor.

(4) Unless otherwise agreed by the parties, costs in arbitration proceedings shall be imposed on the party that is determined to be wrongful. If both parties partially prevail in the case, costs shall be allocated between the parties according to their rightfulness.

(5) Costs in arbitration proceedings shall also be designated in the decisions of the arbitrator or the arbitral tribunal terminating the proceedings or establishing the settlement between the parties.

Renewal of proceedings

ARTICLE 443- (1) Provisions in Chapter Three of Part Eight, regarding renewal of proceedings, shall be applied also to arbitration, insofar as they are in compliance with the nature of arbitration.

(2) Only the grounds stated in sub-paragraphs (b), (c), (e), (f), (g), (h), (ı) and (i) of the first paragraph of article 375 shall be applied in arbitration. Action for renewal of proceedings shall be resolved by the court.

(3) If the request for renewal is granted, the court shall invalidate the arbitration award and refer the case to the new arbitrator or the arbitral tribunal for the resolution of the dispute. In this case, the arbitrator or the arbitral tribunal shall be selected or formed again, according to article 421.

Provisions not applicable

ARTICLE 444- (1) Other provisions of this Statute are not applicable in matters set in this Part, unless otherwise stated by the Statute.