Mandatory Mediation in Commercial Cases: Scope, Time, Record

In commercial life, disputes over debts and compensation are no longer taken straight to the courthouse door; an attempt is first made to resolve them before a mediator. In force since 2018, the mandatory commercial mediation regime has become a precondition that must be completed before a case is filed in a great many commercial disputes whose subject matter is money. In this article we address which disputes fall within that scope, how the process operates, how the time limits are calculated and what the legal consequences of the final record (son tutanak) are, on the basis of the legislation in force as at 17.09.2026.

What Is Commercial Mediation and for Which Cases Is It Mandatory?

Commercial mediation is a condition of action requiring an application to be made to a mediator before a case is filed, in claims for debt and compensation whose subject matter is the payment of a sum of money among the commercial cases listed in Article 4 of the Turkish Commercial Code. The rule was introduced by Article 5/A, added to the TTK by Law no. 7155, and has been applied since 1 January 2019. As regards the procedure and principles of the process, TTK m. 5/A refers to the general provisions on mediation as a condition of action in the Law no. 6325 on Mediation in Civil Disputes; for that reason, commercial mediation must be examined by assessing both sets of rules together.

Beyond reducing the workload of the courts, the purpose of this regime is to produce rapid solutions shaped by the parties’ own will, which preserve the continuity of commercial relationships. By making this step compulsory before a case is filed, the legislature aimed to direct the parties to sit down at the negotiating table once more before going to court; the outcome of the process varies according to the specific circumstances of each file.

Commercial Cases Within the Scope of TTK Article 5/A

Under TTK m. 5/A, in respect of claims for debt and compensation whose subject matter is the payment of a sum of money among the commercial cases specified in Article 4 of that Code and in other statutes, having applied to a mediator before filing the case is a condition of action. The examples most frequently encountered in practice are price claims arising from commercial sale contracts, current account receivables, compensation claims arising from commercial contracts that are not in the nature of a lease agreement, actions for the annulment of an objection (itirazın iptali), negative declaratory actions (menfi tespit) and actions for the recovery of payment (istirdat). Monetary claims arising from service, distributorship, dealership and carriage contracts between companies are also assessed within this scope. Likewise, claims arising from the right of recourse under a factoring agreement are treated as commercial disputes whose subject matter is money and fall within the scope of mandatory mediation.

Disputes Falling Outside the Scope of Mandatory Mediation

Commercial cases whose subject matter is not a monetary claim (for example, annulment of a company general assembly resolution, claims for withdrawal from membership in a limited liability company, or non-monetary claims such as prevention of the infringement of a trade name), together with disputes containing a private arbitration clause, bankruptcy and composition (konkordato) applications, and applications for interim injunctions and interim attachment, fall outside the scope of mandatory mediation. Overlooking this distinction may lead to time being lost unnecessarily in a dispute that could have been taken straight to court or, conversely, to a case being dismissed on procedural grounds in a file where an application to a mediator was required.

The Difference Between Mediation, Arbitration and Going Directly to Court

In mediation the parties produce their own solution with the assistance of a third person (the mediator); the mediator has no power to decide. In arbitration, by contrast, the parties leave the resolution of the dispute to an arbitral tribunal and the arbitral award is binding in the same way as a final judgment. Even in a monetary dispute between parties whose contract contains an arbitration clause, the application of mandatory mediation must be assessed separately because of the priority of the arbitration clause; at this point the wording of the contract must be examined with care. Compared with going directly to court, the essential differences of mediation are that the process is conducted confidentially, that the parties take part voluntarily and that it can be concluded within a short time.

In connection with this subject you may wish to read our article on the steps before and after mediation in the collection of a commercial debt.

Stages of the Mediation Process

The process begins with an application by the creditor party to the mediation office attached to the Mediation Department of the Ministry of Justice; the office assigns the file to a mediator on the register, either of its own motion or in accordance with the parties’ wishes, and the process then advances through defined procedural steps.

Application to a Mediator and Appointment

The application is made, irrespective of the value of the dispute, to the mediation office at the place of residence of the other party or at the place where the work was performed. In places where there is no such office, the appointed writ clerk’s office receives the application. The mediator invites the parties to a first meeting within a reasonable time of the date of appointment; if one of the parties fails to attend the first meeting without showing a valid excuse, then, where the process comes to an end, that party may be held liable for all of the litigation costs even if it is found partly or wholly in the right.

The First Meeting and the Participation of the Parties

At the first meeting the mediator explains the principles of the process, the rule of confidentiality and the voluntary participation of the parties. The parties may attend in person or through authorised representatives; in the case of legal entities, a document showing that the person attending the meeting is authorised to represent the entity is required. Depending on the circumstances of the day, meetings may also be conducted face to face or over remote access systems.

Power of Attorney, Authority to Represent and the Principle of Confidentiality

It is advisable for the power of attorney of the lawyer who is to represent the company in the mediation meetings expressly to include the authority to settle and to sign a settlement document; otherwise, converting the understanding reached at the meeting into a formal settlement document may be delayed. Unless the parties agree otherwise, information and documents disclosed in the mediation meetings cannot be used as evidence in subsequent proceedings; this principle of confidentiality enables the parties to negotiate more freely throughout the process. The impartiality and independence of the mediator is the basic foundation of the reliability of the process; a mediator who has previously had a relationship with one of the parties, such as acting as their lawyer or adviser, cannot accept the appointment.

Time in Mediation: The Six-Week Rule and Extension

Unless the parties agree otherwise, the mediator must conclude the process within six weeks of the date of appointment; in compulsory circumstances this period may be extended by the mediator by a maximum of two weeks. A file therefore completes the mediation stage within eight weeks at the latest.

The Legal Nature and Consequences of the Final Record

The mediation process ends either with the parties reaching agreement or with their failing to do so, and in both situations the mediator draws up a final record. The content of that record and its function at the following stage directly affect the parties’ rights of action.

The Final Record Where Agreement Is Reached

If the parties reach agreement at the end of the mediation meetings, the matters agreed upon are signed off in a record or in a settlement document. Where an annotation of enforceability is requested for a settlement document signed jointly by the parties and their lawyers together with the mediator, that document is treated as a document in the nature of a court judgment and may be enforced in accordance with the general provisions.

Filing a Case and Time Limits Where No Agreement Is Reached

If the parties fail to reach agreement, the mediator draws up a final record stating this and notifies the office. In order for a case to be filed, the original of that final record, or a copy certified by the mediator, must be attached to the statement of claim; if this document is not attached to the pleading, the court gives the claimant a final period of one week to remedy the omission, and if the record is still not submitted within that period the case is dismissed on procedural grounds for want of a condition of action. At the conclusion of the case that is filed, the question of who pays the counterparty’s attorney fee for the unsuccessful party may also arise separately; this matter directly affects the scope of the litigation costs to be awarded.

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Effect on the Statute of Limitations and Preclusive Periods

Throughout the period running from the application to the mediator until the date on which the final record is drawn up, the statute of limitations is suspended and preclusive periods do not run; once the process ends, the remaining time continues to run. Checking, before the application, whether the claim has become time-barred is decisive both for the mediation process and for the outcome of any subsequent case. To make this calculation easier, you can carry out a preliminary check of the period applicable to your claim using our limitation period calculation tool; for a definitive result, however, the file needs to be assessed together with a lawyer.

The Position in Commercial Disputes With a Foreign Element

In commercial contracts where one of the parties is resident abroad as well, if the dispute is to be heard before the Turkish courts and is a commercial dispute whose subject matter is a monetary claim, the provisions on mediation as a condition of action apply as a rule. However, the designation in the contract of a foreign law and of a foreign arbitration centre directly affects whether the mediation requirement will be applied. In files of this kind, the applicable law and jurisdiction clauses of the contract must be examined first, and the mediation requirement afterwards; otherwise time and expense may be spent on the wrong procedural route. In commercial contracts of an international character, the fact that the parties are subject to the laws of different countries also requires the language to be used in the mediation process and the meeting method (face to face or by remote access) to be clarified in advance.

Illustrative Case Study

The following example is entirely fictitious and is not based on any actual client or file; it has been prepared purely by way of illustration in order to explain how the process operates.

(A) Ticaret A.Ş., a company operating in the textile sector, establishes before commencing enforcement proceedings (icra takibi) against (B) Konfeksiyon Ltd. Şti., which has not paid for the fabric sold to it wholesale, that its claim is commercial in nature and relates to the payment of a sum of money, and applies to the mediation office. A mediator is appointed, the parties hold two meetings within the six-week period and agree on a partial payment plan. A settlement document is signed and an annotation of enforceability is obtained, so that a document is secured which can be taken directly to enforcement should company (B) fail to keep up the instalments. This fictitious example shows that the agreement both removes the obligation to file a case and provides security against a risk of default that may arise in the future.

Had the parties failed to reach agreement in the same fictitious scenario, the mediator would have drawn up a final record of non-agreement and (A) Ticaret A.Ş. would have been able to attach that record to its statement of claim and file a debt claim before the commercial court having general jurisdiction. As in this illustrative example, whatever the outcome of the mediation process, conducting the process in accordance with its proper procedure is decisive for the subsequent stages.

For the enforcement and litigation process to be followed by the creditor where the mediation final record ends unfavourably, you may look at our article on the collection of a commercial debt.

The Advantages Mediation Offers in Commercial Disputes

Since the parties to commercial relationships are highly likely to do business with one another again in the future, resolving the dispute more flexibly and more quickly than by a court judgment is important for the continuation of the commercial relationship. Because mediation allows the parties to produce their own solutions, it opens the way to flexible outcomes that could not appear in a court judgment, such as payment by instalments, set-off, or performance in goods or services.

Confidentiality and the Protection of Commercial Reputation

Court proceedings are as a rule public, and the commercial dispute between the parties may become open to the knowledge of third persons. In mediation, by contrast, it is essential that the meetings and their content are kept confidential; this is an important reason for preferring mediation, particularly for companies wishing to protect their commercial reputation.

Savings in Time and Litigation Costs

While court proceedings may last for years, including expert examination and the appeal stages, the mediation process must be completed within a maximum of eight weeks. Where agreement is reached, savings are made on court fees, expert fees and lengthy litigation costs; and even where no agreement is reached, the parties clarify the scope of the dispute and enter the litigation process better prepared.

The Mediation Fee and the Sharing of Costs

As a rule, the mediation fee is determined between the mediator and the parties on the basis of the Mediation Minimum Fee Tariff (Arabuluculuk Asgari Ücret Tarifesi) updated each year by the Ministry of Justice; in files where agreement is reached the fee is shared equally between the parties, and in files where no agreement is reached it is calculated according to the principles laid down in the tariff. Since the current tariff amounts change every year, the up-to-date version of the tariff for the relevant year as published in the Official Gazette should be checked; the reason no amounts are given in this article is that the tariff may change during the year.

Frequently Made Mistakes

The mistakes most frequently encountered in practice are filing a case directly in a dispute in which mediation is mandatory, failing to attach the final record to the statement of claim, leaving the agreement reached in the mediation process without obtaining an annotation of enforceability, and failing to check the limitation period before entering the mediation process. In addition, incorrectly identifying the competent mediation office may cause the process to proceed defectively from the outset.

Another frequent mistake is leaving the scope of the agreement reached in the mediation process uncertain. If the payment amount, the due date, the number of instalments and the consequences applicable in the event of default are not clearly written in the settlement document, fresh disputes may arise later when the document is taken to enforcement or has to be interpreted. For that reason it is advisable for the text of the settlement to be drafted under the supervision of a lawyer, with possible points of dispute in mind. Finally, assessing at the application stage whether the mediator has a command of the technical aspects of the commercial dispute (for example, sector-specific payment practices) is a factor that increases the efficiency of the process.

For other related topics you may look at our article explaining the differences between default interest and statutory interest and at our relevant practice area page. For a calculation on this subject you can use our calculation tool. For current data, the current announcements of the union of bar associations and the Revenue Administration have been taken as the basis.

On whether mediation is mandatory in eviction disputes arising from a lease relationship, you may look at our article on tenant eviction in 2026. You can reach the current text of the Law on Mediation in Civil Disputes from the legislation page of the Grand National Assembly of Turkey.

What Will the Other Side Do?

During the mandatory mediation process and the subsequent litigation stage, the other side also has its own defence strategy; being prepared for that strategy in advance determines the course both of the mediation meetings and of any subsequent case.

• It may be argued that mediation was not required in any event because the subject matter of the dispute is not a monetary claim. Against this, the nature of the claim (a monetary claim arising from a commercial contract) must be clearly established by documents such as the contract, invoices and the current account statement, and the scope of TTK m. 5/A must be expressly shown in the statement of claim.
• It may be alleged that the mediator was not on the register or that the appointment was not made in accordance with the proper procedure. This objection is met by submitting to the file the appointment letter of the mediation office and the mediator’s registration record.
• It may be contended that the settlement document or the final record does not reflect the true intention of the parties and is invalid. The meeting records, the signatures of the parties and their lawyers, and the mediator’s records of the process are used in meeting this allegation.
• It may be argued that the claim has become time-barred and that the mediation application did not suspend time. Against this, official records showing the date of application to the mediation office and the date on which the final record was drawn up are submitted, and the calculation of the period of suspension is requested.
• It may be contended that the reason for not attending the first meeting rested on a valid excuse. This matter is assessed by looking at whether an official document or report supporting the excuse has been produced and at the records of the mediation office.

Which defence comes to the fore varies according to the specific circumstances of the file (the content of the contract, how the mediation process was conducted, the documents available); for that reason it is important that the relevant documents are collected in full before the case is filed. To assess in advance which defence your file will meet, you can get in touch.

Frequently Asked Questions

Is commercial mediation mandatory for every commercial case?

No. It is mandatory only for commercial debt and compensation claims whose subject matter is the payment of a sum of money, and for actions for the annulment of an objection, negative declaratory actions and actions for the recovery of payment; non-monetary claims do not fall within this scope.

How long does the mediation process take?

It must be completed within six weeks from the date on which the mediator was appointed, extended by a further two weeks in compulsory circumstances, and therefore within a maximum of eight weeks.

What happens if I file a case directly without applying to a mediator?

The court dismisses the case on procedural grounds for want of a condition of action; the parties are obliged to apply to a mediator again.

If agreement is reached, can that document be taken directly to enforcement?

If an annotation of enforceability is requested for the settlement document and obtained, that document is treated as being in the nature of a court judgment and may be enforced in accordance with the general provisions.

Does the time spent in mediation affect the limitation period?

Throughout the period from the application until the final record, the statute of limitations is suspended and preclusive periods do not run; once the process ends, time continues from where it left off.

What happens if the other party does not attend the first meeting?

A party who fails to attend the meeting without a valid excuse may be held liable for all of the litigation costs in the case filed at the end of the process, even if found partly in the right.

Can what is said in the mediation meetings be used as evidence in a subsequent case?

No. Unless the parties expressly agree otherwise, information and documents disclosed during the meetings are confidential and cannot be used as evidence against the parties in subsequent proceedings.

If the contract contains an arbitration clause, do I still have to apply to a mediator?

This varies according to the scope of the arbitration clause in the contract and the nature of the dispute; the file needs to be examined together with a lawyer so that the correct procedural route can be determined.

Conclusion

Mandatory mediation in commercial cases is, when managed correctly, a mechanism that offers an advantage in terms both of time and of litigation costs; however, failure to use the scope, the time limits and the final record in accordance with the proper procedure may give rise to serious consequences such as the dismissal of the right of action on procedural grounds. To determine whether your dispute falls within the scope of mandatory mediation and what strategy is to be followed, you can obtain information about our dispute resolution services. Establishing the scope, following the time limits, preparing the settlement document and, where necessary, moving on to the litigation stage are technical steps that may differ according to the specific features of each file. Your particular situation requires an assessment on a file-by-file basis.

Related Articles and Sources

In connection with this subject, our articles entitled the collection of commercial debts through enforcement and enforcement proceedings specific to negotiable instruments also contain useful information. For keeping track of current data and legislation, the resources of the Union of Turkish Bar Associations and the Yargıtay (the Court of Cassation) Decision Search System may be used.

Table of Time Limits

Sources

• Legislation Information System (mevzuat.gov.tr)
• Official Gazette (resmigazete.gov.tr)
• Union of Turkish Bar Associations
• Revenue Administration (GİB)
• tbmm.gov.tr
• Yargıtay Decision Search System

Related Articles

• How Does the Right of Recourse and Notice of Assignment Work in Factoring?
• Withdrawal and Expulsion From Membership in a Limited Liability Company
• Collection of a Commercial Debt: The Process Step by Step, From Notice to Enforcement
• Who Pays the Counterparty’s Attorney Fee? (2026 AAÜT Guide)
• Statutory Interest, Default Interest and Advance Interest: The Differences
• Tenant Eviction 2026: The 10-Year Extension, Need and the Undertaking to Vacate
• The Difference Between Enforcement Specific to Negotiable Instruments and Ordinary Enforcement

This article is for general information purposes and does not take the place of legal advice. Your particular situation requires a separate assessment of your own file.
This article was prepared on the basis of the legislation in force as at 17.09.2026.

Av. Yahya Köse
Enforcement and Bankruptcy Law, Real Estate Law, Lease and Eviction Law, Criminal Law, Dispute Resolution, Preventive Law
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