Violation of Public Policy as a Ground for Annulment of an Arbitral Award Within the Context of Arbitration Proceedings Conducted Pursuant to the Code of Civil Procedure

Abstract

The subject of this study is the violation of public policy, which constitutes one of the most significant grounds for setting aside an arbitral award within the framework of arbitration proceedings conducted under the provisions of the Turkish Code of Civil Procedure. In this context, it is first demonstrated that it is difficult to provide a precise definition of public policy due to its variable nature depending on time and place. Classifications proposed in relation to this concept are addressed, and by taking into account scholarly opinions and especially judicial practice, it is determined that a violation of public policy, as a ground for setting aside, refers to contradictions with the body of institutions and rules that protect the fundamental structure and core interests of Turkish society at a given point in time. Subsequently, individual cases considered as violations of public policy-particularly in light of court decisions-are examined, and specific issues often associated with such violations are analyzed and critiqued. Finally, the study emphasizes that the determination of a violation of public policy lies within the discretion of the court, depending on the particular circumstances and features of the case. It is also noted that, even if not explicitly raised in the statement of claim for annulment, the court may consider this issue ex officio, and the related review-albeit to a limited extent-permits substantive scrutiny of the arbitral award.