The lawsuit for cancellation of disposition is a legal remedy filed to annul the transfer and disposition transactions made by the debtor in order to evade his assets from creditors. In the Turkish legal system, this case is regulated in Articles 277 and following of the Execution and Bankruptcy Law (EIB). The main purpose of this lawsuit is to protect the rights of creditors and to ensure that creditors receive their receivables by invalidating the bad faith actions of the debtor.
1. Concept and Legal Basis of Action for Cancellation of Disposition
The action for annulment of disposition aims to ensure that the dispositions made by the debtor in order to smuggle goods from his creditors are deemed legally invalid and that the creditors can seize and sell these properties. EIC 277 ff. The articles constitute the legal basis of this case. These articles regulate in detail which actions of the debtor can be canceled and under what conditions this lawsuit can be filed.
2. Purposes of the Action for Cancellation of Disposition
The main purpose of the action for annulment of disposition is to protect the rights of creditors and to ensure that creditors receive their receivables by invalidating the bad faith dispositions of the debtor. This case provides an important legal mechanism to prevent damage to creditors.
2.1. Protection of Legal Heirs
The case for cancellation of disposition is also of great importance in the context of inheritance law. Cancellation of the savings made by the debtor in order to evade his assets from creditors before leaving an inheritance is also important in terms of protecting the rights of legal heirs. Thanks to this lawsuit, heirs can protect the debtor's assets against creditors and a fair inheritance sharing can be achieved.
3. Conditions of the Action for Cancellation of Disposition
In order to file a lawsuit for cancellation of savings, certain conditions must be met. These conditions are regulated in detail in Articles 277 and following of the Execution and Bankruptcy Law (EIB). In this section, we will examine in detail the conditions of the action for cancellation of the disposition and the relevant legal articles.
3.1. Unfair Savings
In the case of annulment of disposition, unjust disposition refers to the transfers and transactions made by the debtor in order to evade his assets from creditors. These dispositions are considered as transactions that harm the rights of creditors and their cancellation is requested. EBL Article 277 and subsequent articles regulate the circumstances in which such unfair dispositions can be annulled.
3.2. Conditions of the Case for Cancellation of Savings
Articles 278, 279 and 280 of the EBL determine in detail the conditions for the action for annulment of the disposition. Within the scope of these articles, the conditions that must be met in order to file a lawsuit for the cancellation of the disposition are as follows:
1. Real Receivable: The plaintiff must have a real receivable. This means that the debtor's debt to the creditor is real and valid. In order for a cancellation lawsuit to be filed, the debt relationship must be based on a valid receivable.
2. Finalized Enforcement Proceedings: There must be a finalized enforcement proceeding against the debtor. This means that the enforcement proceedings against the debtor have been concluded and the debtor has not paid his debt.
3. The savings subject to cancellation must be made after the debt arises: The savings subject to cancellation must be made after the debt arises. This condition means that savings made by the debtor after paying off his debt cannot be canceled.
4. Certificate of Insolvency: The creditor must have a certificate of insolvency. An insolvency certificate is a document showing that the debtor is unable to pay his debt. A certificate of insolvency or temporary insolvency certificate obtained in accordance with Article 143 of the Enforcement and Bankruptcy Law is required to open this case.
3.3. Donation (Gratuitous Gains) – EBL Article 278
Article 278 of the EBL contains regulations regarding the cancellation of gratuitous gains such as donations. According to this article, unrequited gains made within the two-year period following the seizure or insolvency or bankruptcy due to lack of property to be seized may be cancelled. The following conditions are required for the cancellation of charitable dispositions:
- Unrequited Gains: Unrequited gains, such as donations made by the debtor.
- Two-Year Period: The disposition subject to cancellation must have been made within two years before the creditor's lien request or bankruptcy filing.
Within the scope of this article, it is also possible to cancel the savings made by the debtor with his/her spouse, descendants, ascendants and relatives up to the third degree.
3.4. Savings Made by the Debtor in Debt – EBL Article 279
Article 279 of the Bankruptcy Banking Bank contains regulations regarding the cancellation of the savings made by the insolvent debtor. According to this article, some savings made by the debtor while he is unable to pay his debts may be cancelled. The following conditions are required:
- Indebtedness: Savings made by the debtor knowing that he is indebted.
- One Year Period: Savings made within one year before foreclosure or bankruptcy.
Dispositions that can be canceled include transactions such as liens made to secure an existing debt, unusual payments, and payment of debts that are not due.
3.5. Savings Made with the Intention to Harm Creditors – EBL Article 280
Article 280 of the EBL contains regulations regarding the cancellation of dispositions made with the intention of harming creditors. According to this article, all transactions made by the debtor with the intention of harming his creditors can be cancelled. The following conditions are required:
- Intent to Cause Harm: Actions made by the debtor with the intention of harming his creditors.
- Five Year Period: Cancellation of the savings can be requested within five years from the date of the transaction.
In cases where the debtor's financial situation and intent to cause harm are known, creditors may request the cancellation of such dispositions. Dispositions made by the debtor with close relatives are generally not considered bona fide.
3.6. Other Terms and Issues
In the case of cancellation of the savings, apart from the above-mentioned conditions, some general issues must also be taken into consideration. These issues include issues such as the debtor's intent to steal property, the creditor having a real and valid receivable, and compliance with the deadline for filing a lawsuit.
In an action for cancellation of disposition, it is the plaintiff's obligation to prove the debtor's intent to steal property. For this reason, the plaintiff creditor must prove with evidence that the debtor's actions are unfair and harm the rights of the creditors.
The lawsuit for cancellation of savings aims to protect the rights of creditors by canceling the savings made by the debtor in order to smuggle goods from his creditors. EIC 277 ff. This lawsuit, regulated in the articles, can be filed under certain conditions and ensures that the creditors regain their rights by canceling the unfair dispositions of the debtor. In order to file a lawsuit for cancellation of disposition, the debtor must have a real receivable, there must be a finalized enforcement proceeding, the disposition subject to cancellation must have been made after the debt was born, and there must be a certificate of insolvency. If these conditions are met, creditors can obtain their receivables by canceling the debtor's unfair dispositions.
4. Duration of Action for Cancellation of Disposition and Competent Court
In the case of cancellation of savings, the period in which the case can be filed and the competent court are important issues. This period and the courts are regulated in EBL 284 and other relevant articles.
4.1. Time to File a Lawsuit
The lawsuit for cancellation of the disposition must be filed within five years from the date of the disposition. This period is restrictive and if the period is exceeded, the right to file a lawsuit is lost.
5. Results of the Case for Cancellation of Savings
The results of the lawsuit for cancellation of savings are important in terms of canceling the savings made by the debtor and seizing these savings by creditors.
5.1. Invalidity and Consequences of Savings
If the lawsuit for cancellation of the savings is accepted, the transaction subject to cancellation becomes invalid. In this case, the creditor has the authority to collect his receivables through compulsory enforcement on the property subject to disposition. This ensures that the debtor's assets are protected against creditors.
6. The Case for Cancellation of Savings and Its Relationship with Other Legal Regulations
The lawsuit for cancellation of savings is also related to other legal regulations. This case has important consequences, especially in the context of inheritance law.
6.1. Inheritance Law and Cancellation of Savings Case
The lawsuit for cancellation of disposition also has an important place in the context of inheritance law. The savings made by the debtor before leaving an inheritance are canceled by the heirs, ensuring a fair sharing of the inheritance. This situation is of great importance in terms of protecting the rights of the heirs.
7. Evidence in the Case for Cancellation of Savings
In an action for cancellation of savings, the plaintiff must prove his claims. Therefore, collecting and presenting evidence is an important stage.
7.1. Burden of Evidence
In the case of cancellation of savings, the burden of evidence is on the plaintiff. The plaintiff is obliged to prove that the debtor's disposition is unfair and harms the rights of creditors. In this context, witness statements, documents and other evidence can be used.
8. Sample Decisions Regarding the Application in the Cancellation of Savings Case
In cases of cancellation of savings, the decisions made by the courts are of great importance. These decisions provide important clues as to how the case may turn out.
8.1. Supreme Court Decisions
The Supreme Court has made many important decisions regarding cancellation of disposition cases. These decisions show how cases were concluded and what criteria were taken into account. For example, in its decisions regarding the annulment of transactions made by the debtor with the intention of stealing property, the Supreme Court examines in detail the bad faith of the debtor and the damage of the creditors.
The lawsuit for cancellation of disposition aims to protect the rights of creditors by canceling the bad faith dispositions of the debtor. In addition to ensuring that creditors receive their receivables, this case also plays an important role in the context of inheritance law. Opening and finalizing a lawsuit for cancellation of savings is subject to certain conditions and time period. This case is of critical importance in terms of protecting the rights of creditors and ensuring a fair debt payment system within the Turkish legal system.