What Is The Negotiable Instrument Cancellation Procedure?
Procedure for Cancellation of Negotiable Instruments
Non-Payment Order
The decision of prohibition from payment is requested from the Commercial Court of First Instance in the place of payment or in the place of residence of the bearer, but if the bill is a bearer or registered bill, this decision is taken from the Commercial Court of First Instance in the place of residence of the debtor.
2) Return Case
If the negotiable instrument has left the hands of the holder without his/her consent and it is known who is in possession of the negotiable instrument, a restitution action must be filed before the competent and authorized court in accordance with Article 763 of the TCC. If the holder of the negotiable instrument does not file a restitution action within the time limit, the court shall return the negotiable instrument to the person who presented it to it and lift the prohibition of payment.
3) Cancellation Case
“E) Annulment decision
I – Conditions
ARTICLE 651-
(1) If a negotiable instrument is lost, the court may order its cancellation.
(2) The person who is entitled to the negotiable instrument at the time the negotiable instrument is lost or at the time when the loss is discovered may request a decision to cancel the negotiable instrument.
II – Provisions
ARTICLE 652-
(1) Upon the annulment decision, the right holder may assert his right without a promissory note or request a new promissory note to be issued.
(2) Otherwise, the special provisions relating to various types of negotiable instruments shall apply to the annulment procedure and provisions.”
Conditions for the annulment action;
-The promissory note must have been lost
The promissory note must be lost due to theft, burning, tearing and similar circumstances.
-The promissory note must have been disposed of without the consent of the bearer and it must not be known who has it
If it is known who is in possession of the promissory note, it can be recovered through a reclamation action.
-The right on the promissory note must continue
It is necessary to have a right in rem on the promissory note.
-Cancellation of the promissory note must be possible
It should be one of the bills that can be canceled in the TCC.