Constitutional Court Landmark Ruling on Auction Annulment Fines in Turkey

Constitutional Court Landmark Ruling on Auction Annulment Fines in Turkey

A Constitutional Court (AYM) individual application decision closely affecting execution-auction annulment lawsuits was published in the Official Gazette on September 17, 2026. The decision places an important limitation on how the fine faced by a party whose auction-annulment request is rejected is calculated.

How Did the Dispute Arise?

The applicant company had filed a lawsuit to have an execution auction annulled, but its request was rejected by the court. Under Article 134 of Enforcement and Bankruptcy Law No. 2004, a party whose auction-annulment request is rejected can be ordered to pay a fine calculated as a certain percentage of the auction price. In this case, the court applied the statutory maximum rate (10%) and ordered the applicant to pay a fine of 560,000 Turkish lira.

What Did the Constitutional Court Find?

The Constitutional Court determined that the lower court, in setting the amount of the fine, had not evaluated the specific circumstances of the case and had not provided reasoning for applying the maximum rate. According to the Court, automatically applying the maximum fine without any individualized assessment in this manner violates the applicant's right of access to court.

What Does the Decision Mean?

Having found a violation, the Constitutional Court ordered a retrial and referred the file to the relevant execution court. Going forward, the decision signals that courts must evaluate the specific circumstances of each case (such as the good faith behind filing the lawsuit, the size of the auction price, and the parties' financial situation) when imposing a fine in auction-annulment cases, and must give reasons for the rate applied. For parties considering challenging an execution auction, this risk remains an important factor to weigh carefully before filing suit.

Source: Constitutional Court of Turkey, Individual Application No. 2022/49505, decision published in the Official Gazette on September 17, 2026.

This content is provided for general informational purposes only and does not constitute legal advice. We recommend consulting a lawyer if you are considering filing an auction-annulment lawsuit or are facing a fine in such a case.