Commercial Receivables Lawsuits

Non-payment for goods delivered or services rendered is the most common legal problem companies face. A commercial receivable lawsuit aims to collect, through a court judgment, a monetary claim arising from a commercial transaction between two merchants. However, filing a lawsuit directly is not always the first or the fastest step; using tools such as mediation, precautionary attachment, and enforcement proceedings in the right order significantly affects the likelihood of collection.

On this page, we summarize the process followed when collecting a commercial receivable through litigation, the competent court, the means of proof, and the deadlines to watch.

What is a commercial receivable and a commercial lawsuit?

For a lawsuit to be considered commercial, it must either relate to the commercial enterprise of both parties or arise from a matter regulated under the Turkish Commercial Code. For example, payments arising from the sale of goods between two companies, a dealership or distributorship agreement, freight charges, or service fees are typical commercial receivables. Receivables arising from negotiable instruments are also, as a rule, commercial in nature; for these, you may also see our cheque and promissory note law page.

Commercial lawsuits are heard by the commercial court of first instance. In places where there is no commercial court of first instance, these cases are heard by the civil court of first instance acting in the capacity of a commercial court.

Mandatory mediation before filing a lawsuit

In commercial lawsuits concerning a monetary receivable, compensation, objection annulment, negative declaratory actions, and restitution actions, applying to a mediator before filing the lawsuit is a condition for bringing the case. A lawsuit filed without applying to a mediator is dismissed on procedural grounds. In commercial disputes, the mediator concludes the process within six weeks of the date of appointment; in cases of necessity, this period may be extended by up to two weeks.

Mediation also offers a benefit with respect to the statute of limitations: from the date of the application to the mediator until the date the final report is issued, the limitation period is suspended and forfeiture periods do not run. If a settlement is reached, the settlement agreement signed jointly by the parties' lawyers and the mediator is deemed a document having the force of a court judgment and can be directly submitted for enforcement.

Competent court and jurisdiction

The competent court by subject matter is the commercial court of first instance. As for territorial jurisdiction, as a rule it is the court of the defendant's place of residence. In lawsuits arising from a contract, the court of the place where the contract is to be performed is also competent. Because monetary debts are, as a rule, paid at the creditor's place of residence, in practice the creditor company can often also file the lawsuit where its own headquarters is located. Written jurisdiction agreements made between merchants are also valid; if your contract contains a jurisdiction clause, the lawsuit must be filed in accordance with that clause.

How is the receivable proven?

In commercial receivable lawsuits, proof mostly relies on documents. The main pieces of evidence are as follows:

• Invoices: If the party receiving the invoice does not object to the invoice or its content within eight days of receiving it, it is deemed to have accepted the content. For this reason, it is important to show that the invoice reached the other party.
• Commercial books: Commercial books kept in compliance with the law and with their opening and closing certifications completed can be used as evidence in lawsuits between merchants.
• Contracts, order forms, delivery notes, and delivery records: These show that the goods or services were delivered.
• Current account reconciliations and email correspondence: These may demonstrate that the debt was acknowledged or show its amount.

In the lawsuit, an expert examination is usually conducted on the commercial books of both parties. Whether the books are kept in an orderly manner and are consistent with each other can directly affect the outcome. A party that avoids submitting its books for examination may also suffer adverse consequences from this stance.

Interest, precautionary attachment, and statute of limitations

Commercial interest

In commercial transactions, the interest rate applied by the Central Bank of the Republic of Türkiye for short-term advances (advance interest) may be claimed as default interest. Because this rate changes periodically, the current rate must be used for calculation; for a preliminary calculation, you can use our interest calculation tool. If a higher default interest rate has been agreed in the contract, that is also taken into account. Interest accrues from the date the debtor falls into default; if the payment date is set in the contract or jointly by the parties, the debtor falls into default once this date passes, without the need for a further notice. For this reason, the maturity provisions in contracts and invoices should be examined carefully as to the starting point of the interest calculation.

Precautionary attachment

For monetary receivables that are due and not secured by a pledge, a precautionary attachment order may be requested from the court; for receivables that are not yet due, the circumstances listed in the law are required, such as the debtor having no fixed place of residence or preparing to dispose of or conceal their assets. As a rule, the court requires security from the creditor. This measure ensures the protection of the debtor's assets until the lawsuit or proceedings are concluded.

Statute of limitations

The general limitation period for receivables is ten years; however, the law provides shorter periods, such as five years, for certain receivables. Because the applicable period varies depending on the type of receivable, this issue should be examined first in the case of older receivables.

Enforcement proceedings or a lawsuit?

For receivables with strong documentation and where the debtor is unlikely to object, enforcement proceedings without a court judgment may produce faster results. If the debtor objects to the proceedings, they are suspended and the creditor may pursue an action for annulment of the objection. Where the dispute requires a detailed accounting, or where there are mutual claims of defects or incomplete performance, filing a direct receivable lawsuit may be more appropriate. This choice should be made based on the condition of the documents, the debtor's assets, and the applicable deadlines.

Whichever path is chosen, sending the debtor a notice through a notary public is often useful. For debts with no specified due date, a notice puts the debtor in default and clarifies the starting date of interest; the debtor's response may also reveal the real cause of the dispute. In addition, conducting a preliminary investigation into the debtor's registered real estate, vehicles, and known receivables is important for the collectability of the judgment to be obtained. A lawsuit won does not, in itself, mean collection if the debtor has no attachable assets.

Support from our firm

In commercial receivable files, we handle the process in an integrated manner, starting with a review of documents and books and continuing through mediation talks, precautionary attachment requests, enforcement proceedings, and the litigation stages. Every receivable relationship is unique; the path to follow must be determined by separately assessing the specific circumstances.