Termination of Arbitration - Chapter 16 - Arbitration Law of Turkey: Practice and Procedure
Dr. Ziya Akinci, is the founding partner of AKINCI Law Oices, Turkey. He sits as an arbitrator in disputes under the ICC and other institute rules, including ITO and TRAC and also under ad hoc rules. Dr. Akinci acts as party counsel in arbitrations, both domestic and international, and under ICC, ICSID and ad hoc rules. He has previously been requested to provide expert opinions in some arbitration cases. Dr. Akinci is member of the ICC Court.
Originally from Arbitration Law of Turkey: Practice and Procedure
TERMINATION OF ARBITRATION
Principally the arbitration terminates after the final award is made. The mandate of the arbitral tribunal terminates with the termination of the arbitral proceedings. However, there are some other events that cause an arbitration to terminate. The following events would terminate an arbitration proceeding without an award.
16.1 WITHDRAWAL OF THE CLAIM
The claimant may withdraw his claim at any point during the proceedings, and this terminates the arbitration. If the sole arbitrator or the arbitral tribunal recognizes a legitimate interest of the Respondent in obtaining a final settlement of the dispute, then the award may be rendered rather than directly terminating the arbitration proceedings.
Under Turkish law, the withdrawal of the claim by the Claimant means that the consequences of starting the arbitration are retroactively terminated; as such the statute of time is not cut off due to the arbitration1. One should note that withdrawing a claim is not a waiver of the claim2. In withdrawal, the Claimant reserves its right to make a claim again whereas in waiver the claimant acknowledges that it no longer has the right to make the claim.
TIAC explicitly provides that the Claimant may withdraw the claim. In principal, the Respondent would agree to the Claimant’s withdrawal and the arbitration would terminate. However, in some circumstances, the Respondent may object to the withdrawal of the claim and its effect of termination. This will generally be the case where the arbitration proceeding is almost completed; the Respondent may prefer an award to be rendered so as not to be faced with another arbitration at a later stage. In such circumstances the Respondent may ask the arbitrators to make the award despite the Claimant's decision to withdraw the claim.
16 TERMINATION OF ARBITRATION
16.1 WİTHDRAWAL OF THE CLAİM
16.2 CONTİNUATİON OF THE PROCEEDİNGS BECOMES UNNECESSARY OR IMPOSSİBLE
16.3 REJECTION OF TIME EXTENTION BY THE COURT
16.4 FAİLURE TO COME TO A DECİSİON
16.5 LOSİNG CAPACİTY DURİNG THE ARBİTRATİON PROCEEDİNGS
16.6 FAİLURE TO PAY THE ADVANCE