289 / 522
Turkish Civil Code, and if the partnership assets are not available, their
valuation should be made via an expert. In the third and last stage, ini-
tially, the debts of the partnership are to be paid from the amounts that
are identified, in conclusion of the first and second stages, the advances
and expenses borne by the partners are to be refunded, the partners’
contributions are to be returned and, consequently, the remaining prof-
its and losses are to be distributed to the partners. The Court of
Cassation established stages in the liquidation process, and set a course
of action for the courts regarding the liquidation of ordinary partnerships.
In its decision numbered 2014/13639 E., 2015/1168 K. and dated
20.01.2015, the Court of Cassation determined that the parties have
established an ordinary partnership with the intention to construct a
building, and upon the completion of the construction, the parties have
requested termination and the liquidation of the partnership. The Court
of Cassation again explained the liquidation operations and stages
thereof in its decisions. In addition to the procedure stated in its two
former decisions, the Court of Cassation clarified the valuation method
for the expenses of the partnership that will be used in the event of a
dispute. If the partners do not settle the expenses for the construction
of the buildings, or upon the sales of the independent sections of such
buildings, the construction costs will be determined pursuant to the
current value of the date of the completion of the construction, but not
pursuant to the unit rate of the Ministry of Public Works and
Settlement. In its decision, the Court of Cassation resolved that the
valuation of the expenses made in relation to the aim of the partnership
are to be determined based upon current values.
Conclusion
The termination and liquidation procedure of ordinary partner-
ships is set forth under Article 639 et seq. of the TCO. The Third Civil
Chamber of the Court of Cassation establishes the framework of the
liquidation procedure, in addition to the procedure provided for in the
TCO. Accordingly, the courts should conduct and finalize the liquida-
tion procedure within three stages, each one usually comprised of three
months. The Court of Cassation’s successive publication of three deci-
sions regarding the termination and liquidation process of ordinary
partnerships can be interpreted as an effort to create a precedent.
LAW OF OBLIGATIONS
273