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place. Therefore, the judges must be diligent in exercising their discre-
tionary powers in this regard.
Reasons Asserted by the Parties
The reasons to set aside as per Art. 15(A)(1) of the IAA are inva-
lidity of the arbitration agreement due to incompetence as per the
applied law, if there is no such law, Turkish law, breach of procedure
in appointment of the arbitrators, no ruling within the duration of the
arbitration, incorrect ruling of the arbitrators regarding their compe-
tence or incompetence, arbitrators ruling on matters falling outside
of the scope of the arbitration agreement, not ruling for all matters
set forth in the claims of the parties or exceeding their authority,
and inconformity of the arbitral proceeding with the procedure and
principle of the equality of the parties. However some of these reasons
can be seen together therefore it is advised that such reasons should be
more simply regulated through an amendment to the law.
Invalidity of the Arbitration Agreement being due to Incompetence,
as per the Applied Law, and if there is no such Law, Turkish Law
In order for the arbitration agreement, which is the most significant
and main element of arbitration, to be deemed valid, the parties should
be capable. One of the significant issues here is the law to be applied
to capacity. In a foreign dispute to which the IAA shall be applied, the
court shall consider the International Private and Civil Procedural Law
(“IPCPL”). According to Article 9 of the IPCPL, the national laws of
the parties shall be considered to be the determinant law in the case at
hand.
In accordance with the same paragraph, another reason is the arbi-
tration agreement being rendered invalid as per the law to be applied to
the validity of the arbitration agreement, which is determined by the
parties. If the parties showed no will in this regard, and did not deter-
mine the law to be applied to the validity, the validity of the arbitration
agreement shall be evaluated in accordance with the Turkish laws. The
invalidity of an arbitration agreement shall be at stake in terms of form,
defective intentions or signing of such agreement by an incompetent
person. The issues regarding the form of the arbitration agreement and
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