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been put forward after the submission of the reply brief or after the

lapse of the period for submitting the reply brief. Following an initial

objection on arbitration, the court shall accept the objection and deny

the lawsuit for procedural issues, unless the arbitration agreement is

invalid, ineffective or impossible to execute. In the event the initial

objection on arbitration is not put forward in the allocated time, the dis-

pute shall be resolved before the courts and the parties may not object

to the dispute being referred to the court. The fact that the objection on

arbitration is an initial objection and that it would not be taken into

consideration in a later stage may be criticized.

Pursuant to Article 422/1 of the CPC, the arbitrators may rule on

their own competences, including ruling on objections to the existence

and validity of the agreement. The ability of the arbitrators to rule on

their own competences is referred to with the notion “

competence-

competence

” by the scholars. Pursuant to Article 422/2 of the CPC, the

objections to the competence of the arbitrators shall be put forward at

the latest with the reply brief. The parties appointing the arbitrators or

participating in the appointment of the arbitrators does not deprive

them of the right to object to the competence of the arbitrators.

Nevertheless, the objection related to the arbitrators exceeding their

competences must immediately be put forward.

Provisional Legal Conservatory Measures in Arbitration

Article 414 of the CPC governs the ordering of interim measures

and recording of evidence decisions. Pursuant to Article 414/1 of the

CPC, unless agreed otherwise, arbitrators may decide to order an inter-

im measure or the recording of evidence during the course of the arbi-

tration proceedings upon request of a party. The interim measure deci-

sion may be declared conditional by the arbitrators upon the provision

of adequate collateral. Nonetheless, it is supported by the doctrine that

provisional seizure decision is not an interim measure which may be

ordered by the arbitration tribunal given its nature, and it may only be

requested from the courts.

Article 414/3 of the CPC regulates the events where application to

the courts is possible for an interim measure or recording of evidence

decision. Pursuant to this article, in the event the arbitrators or another

person to be appointed by the parties may not act in a timely and effi-

194

NEWSLETTER 2012