ERDEM-NEWSLETTER-2018-metin

149 ARBITRATION LAW Resolution of Disputes through Arbitration in Light of the New Regulations The new regulations provide detailed provisions on the selection of arbitration as a dispute resolution mechanism. Different provisions are to be applied, depending on whether the case at hand is within the scope of Article 2/1/1 of International Arbitration Act numbered 4686 3 (“IAA”). The relevant provision is to be found under the Ar- ticle in the IAA regulating foreign element, and sets forth that there is foreign element if the legal seat, habitual residence, or place of busi- ness of the parties to the arbitration agreement, are in different states. In line with the explanations, above, the provisions that provide for the resolution of disputes through arbitration set forth the selec- tion of ISTAC arbitration for the cases outside of the scope of Article 2/1/1 of the IAA. In these cases, it is possible to select the seat of the relevant administrative authority or Istanbul as place of arbitration. Other provisions pertaining to the arbitration clause are the selection of the Turkish language as the language of the arbitration proceedings, arbitral tribunal of three arbitrators, and Turkish law as the law to be applied as substantive law. Another possibility if the parties select arbitration as the dispute resolution mechanism is whether the case at hand is within the scope of Article 2/1/1 of the IAA. In such case, the parties have discretion in light of the new regulations. Accordingly, it is possible to select ISTAC arbitration, or arbitration within the provisions of the IAA, as the dispute resolution mechanism. If it is selected to resolve the dispute under ISTAC rules, it is possible to select the seat of the relevant administrative authority or Istanbul as place of arbitration. These disputes with a foreign element are regulated differently other than our explanations, above, and it is possible to agree freely on the language of arbitration and substantive law to be applied in the arbitration proceedings. The arbitral tribunal shall be composed of three arbitrators. 3 International Arbitration Act, 21.06.2001, No. 4686, (OG, 05.07.2001, No. 24453).