Execution Proceedings For Pecuniary Claims Arising Out Of Subscription Agreements Will Be Conducted Online 20 December 2018

The Bill of Law on the Execution Proceedings for Pecuniary Claims Arising out of Subscription Agreements (“Law”) which is bringing crucial amendments to the execution proceedings for pecuniary claims arising out of subscription agreements has been published in the Official Gazette dated 19 December 2018.

We would like to inform you below regarding new execution proceeding on pecuniary claims arising out of subscription agreements.

1. Which contracts and execution proceedings do fall under the scope of the Law?
The law involves the execution proceedings of contracts, of which subjects are to supply to consumer specific product or service continuously or periodically and of other subscription agreements which have been regulated in legislation, and which are conducted by lawyer and arisen out of product and service which has been rendered to consumer and which of prices has been reflected on the invoice for performance of the agreement.
For instance, subscription agreements  regarding electric, water, natural gas, internet, phone etc. and execution proceedings which arising out of product and service which has been reflected to the invoice made instead services which has been rendered in the scope of that contracts. In order for that these execution proceedings can be considered in the scope of the Law, they should be conducted by lawyer.

2. How will Execution Proceedings which are in the Scope of the Law Be Commenced?
Centralized System for Execution Proceedings shall be set up under National Judiciary Informatics System (UYAP) in order for execution proceedings which is in the scope of the Law may conducted via Internet.

Creditor’s lawyer shall file a request for execution subsisted under Centralized System for Execution Proceedings to commence execution proceeding. The request shall involve identifying information of creditor, his/her lawyer and debtor and, if any, their contact information, information regarding due and interest to be exercised, information considering documents which have been merit of the execution and authorized execution office.
After the request for execution has been filed and execution costs have been paid, the request shall be approved by secured electronic signature and to be recorded to the system.  With the record, centralized execution number shall be formed and it is deemed as execution proceeding has been commenced.
After the request for execution has been recorded, system shall arrange order for payment as template pursuant to the information given on request for execution and transmit notification information to the PTT (Directorate of Post, Telegraph and Telephone).

3. How will the Request for Payment Be Delivered?
Request for payment shall be delivered to the debtor physically by PTT. The notification process shall be governed by the Notification Law.
PTT shall upload the record which indicates information regarding notification, and deliver the original record to the authorized execution office.
In case of failure to make a notification to the declared address, a notification shall be made once to the debtor’s residential address registered on address record system upon request of creditor’s lawyer.
If the request for execution cannot be delivered once more, the record on the system shall be closed off and the execution process shall be continued at authorized execution office upon request of creditor’s lawyer through the system.
In the event of that request for execution has been duly issued, upon due has been paid through account number indicated on request for payment, the execution process shall be concluded. After the tuition fee has been separated from the payment, the payment shall be transferred to the related account.

4. How will the Request for Payment Be Objected to?
Debtor is entitled to object to the request for payment by applying any execution office within 7 days following the date of notification.
Execution office shall upload the objection to the system and transmit the original objection to the authorized execution office.
Certificate of receipt which is free for charge and indicates that the debtor has objected to the execution shall be delivered to the debtor.
The debtor is entitled to object through Centralized System for Execution Proceedings by using its qualified e-signature.
Upon objection, the execution proceeding shall no longer be continued. Bankruptcy And Enforcement Law shall be applied for suspended execution.
The objection shall be deemed served to the creditor’s lawyer at the end of the fifth days following the date which the objection has been uploaded to the system.
In order for lifting the objection, creditor’s lawyer should request from the court where the execution office is affiliated with. The court shall render a decision by examining the file without conducting a hearing.

5. What will happen in Situation which the Request for Payment has not been objected or the Objection has been cancelled?
In cases where the debtor has not objected for request for payment or the objection has been cancelled, if the due which constitutes the basis of execution proceeding is not paid, the execution proceeding will continue and attachment proceeding shall be commenced.
As it stated above, in cases where the execution proceeding can be continued, creditor’s lawyer may check whether the debtor has any asset via UYAP without submitting attachment request. This inquisition will not give detailed information on debtor’s asset, it only recruits to detect whether the debtor has any asset. In case any debtor’s asset to be detected, attachment proceeding may be requested.
The execution proceeding will discontinuance if the creditor’s lawyer does not request attachment within 1 year as of notification date of the request for payment. This period 1 year period does not contain the period between the case date and the final decision date in case lawsuit regarding withdrawal of objection is filed.

6. When will the Related Articles of the Law Come into Force?
Provisions of the Law regarding execution proceedings will come into force on the date of 1 June 2019.
Provisions of the Law regarding execution proceedings shall not apply for the execution proceedings which are pending in effective date of the Law. 

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