The Process of Seizure and Sale of Marine Vessels in Turkish Law
ENTRANCE
Maritime transport forms the backbone of international trade, and vessels with high economic value are central to many commercial relationships. In this context, if a debtor fails to pay a debt arising from a vessel, it becomes a legal necessity for the creditor to resort to seizure of the vessel and, if necessary, sale of the vessel in order to collect the debt
In Turkish law, seizure and sale procedures for ships are subject to special procedures similar to those for immovable property. This article will examine the ship seizure and sale process in detail, in light of the Turkish Commercial Code, the Enforcement and Bankruptcy Law, and international regulations.
I. LEGAL STATUS OF MARINE VESSELS
Turkish Commercial Code No. 6102 (TTK) recognizes ships as a special type of movable property. However, in practice, due to their economic and commercial value and the difficulty of transporting them, to special procedures similar to those for immovable property . Registration in the ship registry, placing a mortgage, and compulsory execution procedures reflect these special characteristics.
II. LEGAL BASIS FOR SHIP SEIZURE
1. Turkish Commercial Code (TCC)
Articles 1320 to 1371 of the Turkish Commercial Code regulate maritime claims, provisional attachment, enforcement attachment, and sale procedures. These articles allow creditors to secure their claims on the vessel.
2. Enforcement and Bankruptcy Law (EBL)
The enforcement process is carried out within the framework of the provisions of the Enforcement and Bankruptcy Law . Although the ship is movable property, it is subject to sale in a manner similar to the provisions for the sale of immovable property
3. International Agreements
Turkey the 1993 Geneva Convention on the Recognition of International Ship Liabilities and Mortgages. This convention regulates the recognition and priority of ship liens and claims in different countries.
III. SHIP CLAIMS AND ATTACHMENT REQUESTS
1. Definition of Maritime Claims
Article 1320 of the Turkish Commercial Code , "maritime claims" refer to debts arising in relation to a ship, of the following types:
-
Freight charges
-
Wages and compensation for seafarers
-
Accident, rescue and aid costs
-
Port, mooring, and dock fees
-
Supply of fuel, provisions and equipment
-
Damage caused by collision
A request for precautionary attachment can be made based on these receivables .
IV. PRECAUTIONARY ATTACHMENT PROCESS
1. Application and Requirements
The creditor may apply to the competent court for a provisional attachment based on a maritime claim . For this request to be accepted:
-
Written documentation proving the existence of the maritime claim must be submitted
-
A security deposit is required (usually 15%)
-
The vessel to be seized must be specified
-
A court order is required.
2. Enforcement of the Seizure Order
The seizure order is notified to the port authority where the ship is located, and the ship is not allowed to move. The enforcement is carried out by the enforcement directorate or the port police.
V. REGISTRATION OF ATTACHMENT AND ITS EFFECTS
-
The seizure order recorded in the ship register (Turkish Commercial Code, Article 954).
-
The lien notice is also binding against third parties.
-
The ship cannot be moved; the transfer of ownership is restricted.
-
Holders of rights over the vessel (e.g., mortgage holders) are considered priority creditors in the sale process.
VI. ENFORCEMENT, ATTACHMENT AND SALE
1. Enforcement Proceedings
Following a precautionary attachment, the creditor initiates enforcement proceedings. If the debt remains unpaid, an enforcement attachment is placed on the vessel. If payment is still not made despite the attachment order, the sale process is initiated.
2. Valuation and Sale Announcement
-
The value is assessed by an expert .
-
The sale notice is announced through the Official Gazette and national newspapers
-
A sale date is set and an auction is held.
3. Sales Procedure and Transfer of Ownership
-
Sales are generally to real estate regulations .
-
The highest bidder is responsible for depositing the sale price.
-
Upon finalization of the sale, ownership of the vessel passes to the buyer and it is registered in the maritime registry.
VII. ORDER OF CREDITORS
The proceeds from the sale of the ship among the creditors in a specific order . According to Article 1321 of the Turkish Commercial Code, priority creditors are:
-
Seaman wages
-
Rescue costs
-
Port fees
-
Fuel and provisions costs
-
Freight receivables
-
Ship mortgage holders
This ranking has been determined in accordance with the Geneva Convention.
VIII. COMPETENT AND AUTHORIZED COURT
The competent court for requests for precautionary attachment and sale the Commercial Court of First Instance , and the authorized court is:
-
If the ship is flying the Turkish flag, the court of the place where it is registered,
-
For ships flying foreign flags, the court of the place where they are located is the competent court.
IX. PROBLEMS ENCOUNTERED IN PRACTICE
-
Setting an excessive security amountcan be a deterrent for creditors in requesting precautionary attachment orders.
-
Delays in the Process: Sales procedures take a long time, which can lead to a decrease in the value of the vessel.
-
International Recognition Issue: For foreign-flagged vessels, seizure orders may need to be recognized in foreign registries.
CONCLUSION
In Turkish law, the seizure and sale of marine vessels, while ensuring the effective protection of creditors, must be carried out properly and carefully. A ship is not merely an ordinary movable asset, but a special economic asset treated similarly to immovable property. The correct execution of the seizure and sale process is crucial for both creditor satisfaction and the protection of commercial security.
Therefore, ship creditors seek support from lawyers specializing in maritime law and enforcement law to manage the process and prevent loss of rights.
About Post Author
