The Constitutional Court Annulled the Second Paragraph of Provisional Article 1 Of the Enforcement and Bankruptcy Law No. 2004, Ruling That Maintaining the Fixed Value of the Subject Matter of the Dispute While Updating the Monetary Thresholds for Legal Remedies Is Unconstitutional

The Constitutional Court, in its decision dated 6 March 2025, with case number 2025/61 and decision number 2025/46 (the “Decision”), annulled the second paragraph of Additional Article 1 of the Enforcement and Bankruptcy Law No. 2004 (the “Law”), which concerns the application of the monetary thresholds set out in Articles 363 and 364, on the grounds that it is unconstitutional. The Decision was published in the Official Gazette dated 4 June 2025 and numbered 32920.

The second paragraph of Additional Article 1 of the Law provides that, in applying the monetary thresholds set forth in Articles 363 and 364 — which govern appeals to the regional courts and the Court of Cassation, respectively — the amount in effect on the date of the judgment shall be taken as the basis.

Bursa 4th Civil Enforcement Court argued that the contested provision, by eliminating the possibility of appeal before the regional court of appeals and the Court of Cassation in disputes falling below the updated monetary threshold effective on the date of the judgment, violates the right to a fair trial guaranteed under Article 36 of the Constitution, as well as the principle of legal certainty.

The Constitutional Court found the relevant provision to be in violation of Articles 13 and 36 of the Constitution and annulled the contested provision on the grounds that updating the monetary threshold for legal remedies without also updating the value of the subject matter of the dispute effectively eliminates the parties’ ability to seek judicial review, thereby disrupting the balance between the burden imposed on the parties and the public interest, and resulting in a disproportionate restriction on the right to request a review of the judgment.

Considering that the annulment of the relevant provision would create a legal gap detrimental to the public interest, the Constitutional Court ruled that the annulment decision shall enter into force nine months after its publication in the Official Gazette.

You can access the full text of the decision via this link.