As a cost-effective and swift approach guaranteed by law, arbitration has become a popular dispute resolution alternative for conflicting parties. Arbitration centers has been meeting the soaring need of the business world as a dispute resolution mechanism instead of national courts. Arbitration systems are preferred by the features such as being fast, economical and confidential which are very important for the business world. To keep up with the emerging needs, Istanbul Arbitration Center (ISTAC) is founded in 2015 within the Project of Istanbul Financial Center to provide efficient and impartial dispute resolution services for the national and international parties. All contracting parties may benefit the ISTAC’s dispute resolution services as it does not require a membership.
The Arbitration and Mediation Rules of ISTAC enacted in 2015. Providing efficient provisions for different circumstances The Arbitration and Mediation Rules, meet the needs of the cases pending before the Center. With this rules, the ISTAC also provides Fast Track Arbitration and Emergency Arbitrator. The arbitral awards of the ISTAC are binding and final. They can be enforced within the national law systems as a national court judgment. Being a final judgment, arbitration awards cannot be appealed and the awards rendered under ISTAC Arbitration Rules are not subject to further evaluation of the national authorities.
With the ascending cost of national civil litigation, a steeping number of businesses are preferring a varied range of dispute resolution strategies. In a simple comparison to exaggerated national courts and many other arbitration centers ISTAC Arbitration stands even more cost-effective. Registration fee is 300 TRY and administrative cost starts from 1,5% of the dispute amount. In ISTAC Arbitration the disputes are resolved by the highly qualified and experienced arbitrators. The parties or with their mutual consent President of the Board may choose the arbitrators. Arbitrator fees are starting from the 5% of the dispute amount for the sole arbitrator while it is 7% for the arbitral tribunal.
The Center provides its services with a Board which facilitates arbitrators and the parties for the efficient, economical and impartial resolution of the disputes with its staff who are globally well-known experts in their fields and a Secretariat which provides required services as per the Rules and follow the related procedural activities regarding the arbitration process.
The ISTAC has been a reasonable alternative and proper choice for the dispute resolutions with its qualified team who provides an impartial, confidential and swift service. Being swift is one of the main concern of the ISTAC as seen in the Fast Track method. Unless otherwise agreed by the parties, the ISTAC Fast Track Arbitration Rules shall apply to disputes where, the total amount of the claims do not exceed 300.000 TRY. The Sole Arbitrator shall render the award within 1 month after the submission of the last statement or the date of the last hearing.
Besides, the ISTAC also provides emergency arbitrator service for interim measures needed along with the disputes arising from the contract provisions. As per the Emergency Arbitration guide, the Emergency Arbitrator who is appointed by the President of the Board, shall grant interim measures which are appropriate for the nature and circumstances. The Emergency Arbitrator’s decisions are binding on the parties as well. The parties commit to comply with the decision without any delay.
Taken into consideration the geographical location of Turkey as a conjuction point between continents, the ISTAC has been an international center for the resolution of commercial disputes between European, Asian and Middle Eastern countries. Since its foundation, the ISTAC had cases of the parties from India, France, MENA, and Africa countries besides Turkey. The majority of the cases has been international with 53%.
As recommended by the ISTAC official website the parties who wish to have their possible disputes resolved by ISTAC arbitration or mediation should include an appropriate clause in their contracts as follows:
“Any disputes arising out of, or in connection with the present contract shall be finally settled through arbitration under the Istanbul Arbitration Centre Arbitration Rules.”