Key amendments introduced by Law No. 7589 on the effective and efficient operation of the judiciary

Law No. 7589 on the Amendment of Certain Laws for the Effective and Efficient Operation of the Judiciary (the “Law”) introduces significant changes to civil and administrative procedure, as well as the statutory interest regime. This note summarises the key amendments.

Unquantified debt actions abolished and a new mechanism introduced for partial actions

The Law abolishes the unquantified debt action under Article 107 of the Civil Procedure Law (the “CPL”), which allowed claimants to file proceedings by specifying a minimum amount where the precise value of the claim could not be determined at the time of filing. One of its key advantages was that the limitation period was interrupted for the entire claim as of the filing date, i.e., not only for the amount specified in the statement of claim.

To preserve the core safeguards of the abolished mechanism, the Law introduces a new claim-increase right within partial actions. Under the amended Article 109 of the CPL, a claimant who initially pursues only part of a claim may increase the amount once before the end of the evidentiary phase, without being subject to the prohibition on extending the claim. The limitation period for the increased portion is deemed interrupted as of the original filing date.

Lawsuits filed before 31 July 2026 remain subject to the former rules.

New rules on consolidation and appeals in civil proceedings

Consolidation and Bifurcation of Proceedings. Following a Constitutional Court decision annulling the former rule, the Law now provides that a consolidation decision rendered by the court hearing the second action will bind the court hearing the first action only after it becomes final. Consolidation decisions by civil courts of the same level and jurisdiction may be challenged by way of a standalone appeal, without waiting for the judgment on the merits.

Appeals. The Law broadens access to the Supreme Court of Appeal (Yargıtay) where a Regional Court of Appeal (İstinaf Mahkemesi) accepts an appeal and renders a new decision on the merits. Such decisions may be appealed to the Supreme Court of Appeal if the accepted or rejected portion exceeds the monetary threshold applicable to appeals before regional courts of appeal.

Statutory interest linked to the central bank rediscount rate

Following a Constitutional Court decision annulling the former statutory interest provision insofar as it applied to non-contractual obligations, the Law links statutory interest to the Central Bank of the Republic of Türkiye’s (“CBRT”) rediscount rate. Where interest is payable but no rate has been agreed, the statutory rate will be 80% of the CBRT’s short-term rediscount rate as of 31 December of the preceding year, with a mid-year adjustment if the rate changes by at least five percentage points.

Commercial interest rules under the Turkish Commercial Code remain unaffected. Parties should consider expressly regulating the applicable interest type and rate in their contracts to limit uncertainty under the new variable-rate system.

Maximum period between hearings

The Law introduces a general rule that the period between two hearings may not exceed three months. A longer interval may be set in justified circumstances, such as lengthy expert examinations or letters rogatory, provided the court states its reasons. This amendment is aimed at reducing the overall duration of judicial proceedings by preventing prolonged intervals between hearings.

Scope of administrative cases heard by a single judge expanded

The Law updates the monetary threshold for cases heard by a single judge to TRY 486,000, reflecting the amount already in effect through annual revaluation. It also expands the categories of cases to be heard by a single judge regardless of monetary value, including certain student disciplinary matters, temporary assignments of public officials and disciplinary sanctions by professional organisations.

Powers of regional administrative courts revised

The Law clarifies that a regional administrative court may amend the reasoning of a first-instance judgment without setting it aside where the outcome is lawful, but the reasoning is incorrect or incomplete. The grounds on which a case may be remitted to the first-instance court are now exhaustively listed and limited to specified procedural defects.

Access to the council of state expanded

Following a Constitutional Court decision, the Law allows decisions newly rendered by regional administrative courts (after setting aside a first-instance judgment) to be appealed to the Council of State within 30 days, even where the case would not otherwise be appealable. Certain categories remain excluded, including single-judge cases, cases arising under the legislation on foreigners and international protection and certain low-value cases. The new rules apply to decisions rendered after 31 July 2026.