Antalya is a major center known for its dynamic commercial life. In this vibrant economy, commercial relationships and the disputes arising from these relationships are inevitable. In resolving commercial disputes, courts use various types of evidence to substantiate the parties’ claims. Among this evidence, commercial books hold particular importance. According to the Turkish Commercial Code (TCC) and the Code of Civil Procedure (HMK), commercial books can constitute powerful evidence under certain circumstances and directly influence the course of litigation.
This article will examine in detail the evidentiary value of commercial books, a common encounter for businesses and legal professionals in Antalya, in court; the circumstances in which they are accepted as evidence; the review process; and the legal nuances to consider during this process. It will also highlight the vital role that proper and accurate commercial bookkeeping plays in potential legal disputes.
Commercial Bookkeeping Obligation and Its Legal Basis
The Turkish Commercial Code imposes an obligation on every merchant to keep commercial books. This obligation aims to ensure that merchants regularly record their commercial activities, transparently disclose their financial situation, and thus ensure their internal control and establish a reliable basis for their dealings with third parties. The bookkeeping obligation is not only a necessity but also carries the potential to create evidence in the merchant’s favor in a potential lawsuit.
The legal basis for commercial books is Articles 64 and subsequent articles of the Turkish Commercial Code No. 6102 and Article 199 and subsequent articles of the Code of Civil Procedure No. 6100. The Turkish Commercial Code (TTK) provides detailed regulations on which books must be kept (daybook, general ledger, inventory book, decision book, etc.) and how they should be kept. The Civil Procedure Code (HMK), on the other hand, determines how a document can be presented and evaluated as evidence, and its provisions specific to commercial books establish their probative power.
The Evidence Quality of Commercial Ledgers in Court
Commercial ledgers are an important form of evidence used in court to prove or disprove a claim. However, not all commercial ledgers have the same probative power. In Turkish law, the evidentiary value of commercial ledgers varies depending on how they are kept and whether the parties are merchants.
Nature of Evidence in Favor
A trader can use their own trading books as evidence in their own favor. However, certain conditions must be met:
* Proper Keeping: It is essential that the books be kept in accordance with the formal requirements (opening and closing approvals, regularity of records, absence of erasures and scrapings, etc.) set forth in the Turkish Commercial Code and relevant regulations. Books that are not kept in accordance with the procedures do not constitute evidence in your favor.
* The Other Party Is Not a Merchant: If the other party in the case is not a merchant, properly kept commercial books are only “discretionary evidence.” In other words, the judge reaches a decision by evaluating the records in the books together with other evidence. It is not binding evidence for the judge.
* The Other Party is a Merchant: If the other party in the case is also a merchant and has kept proper books, the books of both parties are compared. If both parties’ books support each other, these books become “conclusive evidence.”
Nature of Adverse Evidence
Commercial ledgers always constitute evidence against a merchant. In other words, a merchant cannot claim that an entry in a properly kept ledger is against him. The entries in the ledger constitute the merchant’s own declaration and are considered “conclusive evidence” against him. This is crucial for the reliability and transparency of commercial life.
Relationship with Oath Evidence
The evidentiary value of commercial books is closely related to the evidence of an oath. If a merchant’s commercial books are properly kept and the other party is also a merchant, but their own books are not properly kept or they have not kept any books at all, the merchant who keeps proper books may “offer an oath” to the other party. In this case, if the other party swears an oath, they are deemed to have proven otherwise than the book record; if they do not swear, the book record becomes conclusive evidence against them.
The Process of Reviewing Commercial Books
The presentation and evaluation of commercial ledgers as evidence in court follows a specific procedure. This process often requires expert review.
Submission and Storage of Ledgers
Parties are obligated to produce their commercial books by court order. This production is generally done within the court-determined timeframe and in the manner specified by the court (e.g., by submitting them to the court clerk or making them available for on-site inspection). The obligation to preserve commercial books is also vital for commercial enterprises, as they must be retained for a specific period of time to serve as evidence in potential disputes.
Expert Review
Due to the complex nature of commercial books and the need for accounting knowledge, courts often appoint an expert to examine them. Experts are selected from among accounting or finance experts. The expert review may include the following steps:
#### Preparation of the Expert Report
The expert examines the books within the framework determined by the court. During this examination, the expert assesses the proper maintenance of the books, the accuracy of the records, the presence of erasures or scrapings, and whether they reflect relevant business transactions. The expert submits the results of the examination to the court in a detailed report. This report is one of the most important documents the court relies on when making its decision.
#### Objection to the Report and Additional Review
Parties have the right to object to the expert report. Objections may be made on the grounds that the report is inaccurate or incomplete. The court may evaluate the objections and order additional expert examinations or appoint a new expert. This process is critical to ensuring a complete and accurate evaluation of the evidence.
Status of Improperly Kept or Fake Books
For commercial books to qualify as evidence, they must be properly kept. If the books are kept in violation of the provisions of the Turkish Commercial Code (for example, opening or closing approvals were not made, the records are not organized, there are erasures or scrapings), or if they are found to be fraudulent, these books will not constitute evidence in the merchant’s favor. In fact, this can create a strong presumption against the merchant and support the other party’s claims. Keeping false books or entering false records can also result in criminal penalties in addition to legal penalties.
Legal Support for Commercial Disputes in Antalya
For businesses operating in Antalya, maintaining accurate and complete commercial books is one of the most important factors that will strengthen their position in a potential legal dispute. In commercial cases, correctly understanding, examining, and interpreting the evidentiary value of books requires complex legal knowledge and experience. Appeals to expert reports, in particular, necessitate the accurate determination of a legal strategy.
Therefore, when you encounter a dispute regarding commercial books in Antalya or want to ensure their legal compliance, it is crucial to seek support from a specialized law firm. Legal advice will protect the interests of your business at every stage, from accurate bookkeeping to presenting evidence in court proceedings and evaluating expert reports. In such cases, professional legal assistance is essential to ensure a fair and favorable outcome.