NEWSLETTER-2019-metin

177 ARBITRATION LAW for the arbitral tribunal to see this dispute as a personal claim to collect debt under the general rules of law.” However, the 15th Chamber of the Court of Cassation held on 3 April 2008 that arbitrators and arbitral tribunals are entitled to hear an action for annulment of objection, in its decision of 2008/262 E. – 2006/2138 K.: “The arbitral tribunal decided that they are not competent to hear this case as an action for annulment of objection and to decide on bad faith compensation and therefore, handled the case before them as a personal claim to collect debt. According to the continuous practice of our Chamber, arbitrators are competent to hear an action for annulment of objection and, accordingly, rule in favor of bad faith compensation. Therefore, the arbitral tribu- nal erred in handling this case as a personal claim.” Conclusion There is no explicit regulation as to how the existence of a valid arbitration agreement would affect an execution proceeding without judgment. There is also no unified opinion amongst scholars and chambers of the Court of Cassation. While some scholars and court decisions suggest that it is possible to handle an action for annulment of objection at arbitration, others assert that arbitrators are not compe- tent to decide on this particular matter. It is important for the Court of Cassation to issue a unified opinion, since this issue has direct impact on the legal practice in Turkey.