WinningTheCase inThailandEp.5/1Asking for a loan but making a Sale with Right of Redemption contract

Take an example of a debtor's legal battle under the Sale with Right of Redemption land contract. By the loan shark taking the land as collateral. and charging extremely high interest rates and must also enter into a Sale with Right of Redemption contract for the land But enough to close the debt Instead, tell the debtor that The land is now owned by the capitalist.

The debtor decides to file a lawsuit. And the final result The court ruled in favor of the debtor who sold with Right of Redemption to win the case.

Supreme Court Judgment No. 2532/2022
The plaintiff and the both defendants intend to enter into a loan agreement with the disputed land as collateral. But there was no intention of doing the legal act Sale with Right of Redemption on land disputes with each other. The Sale with Right of Redemption legal act is therefore a legal act to conceal the loan and therefore is void according to Civil and Commercial Code, Section 155, paragraph one, must enforce the loan contract with land as collateral, which is a legal act that is concealed according to Section 155, paragraph two, and the Sale with Right of Redemption contract is considered to be evidence of the loan. The third defendant is the name of the land in dispute. from the 2nd defendant in good faith and paid compensation. The 3rd defendant is therefore a third party who acted in good faith and suffered damage from intentional deception and is protected under Section 155, paragraph one. The two plaintiffs therefore cannot revoke the disputed land purchase and sale act. can
But the loan has an interest rate of 3 percent per month, which is an interest rate that exceeds the rate. Violation of the law Act prohibiting charging interest in excess of the rate, B.E. 2017, Section 4 (1), together with Civil and Commercial Code, Section 654, the agreement regarding interest is void. The fact that both plaintiffs paid interest in excess of the rate The law stipulates It can be considered that the payment of debt violates the legal prohibition according to Civil and Commercial Code, Section 411, both plaintiffs cannot recover But the interest paid by both plaintiffs must be deducted from the principal. This problem is a legal issue related to public order. The Supreme Court can decide and correct even the plaintiff. Did not appeal accordingly Civil Procedure Code, Section 142 (5), together with the Consumer Procedure Act, B.E. 2008, Section 7
When the Sale with Right of Redemption contract is a concealment act, it is void. As a result, the disputed land is still owned by the plaintiff. However, because the third defendant, a third party, purchased the disputed land in good faith and paid court compensation. Therefore, the judgment cannot be made to revoke the Sale with Right of Redemption act because it will affect the rights of the 3rd defendant. The condition of the debt is therefore not Opening the way for the 1st and 2nd defendants to return the disputed land to the plaintiff. Therefore must be liable to compensate the plaintiff for the price of the disputed land.

Civil and Commercial Code

Section 6. Every person is presumed to be acting in good faith.
Section 155. A declaration of intention made with the connivance of the other party which is fictitious is void; but its invalidity cannot be set up against third persons injured by the fictitious declaration of intention and acting in good faith.
If a declaration of fictitious intention under paragraph one is made to conceal another juristic act, the provisions of law relating to the concealed act shall apply.
Section 411. A person who has made an act of performance, the purpose of which is contrary to legal prohibition or good morals, cannot claim restitution.
Section 654. Interest shall not exceed 15% per year; when a higher rate of interest is fixed by the contract, it shall be reduced to 15% per year

Act prohibiting charging interest in excess of the rate, B.E. 2017

Section 4. Any person who lends money to another person or does any act that is in the nature of disguising the lending of money. having one of the following characteristics Must be punished with imprisonment not exceeding two years. or a fine not exceeding two hundred thousand baht or both
(1) Charge interest in excess of the rate specified by law.