Section 224 — Interest on damages

Supreme Court decisions interpreting this section

1. Supreme Court Judgment No. 8168/2551 (2008)

   Section 224 sets only a minimum default rate; where a creditor has a legitimate higher rate under contract or statute, that higher rate governs.

   Bank K had the right under the Commercial Banking Act and Bank of Thailand regulations to charge interest at rates higher than the section 224 statutory default rate. When the plaintiff (as assignee of the bank's loan assets) charged interest at the rates the bank was entitled to charge, the Court confirmed that section 224 does not cap interest where a creditor has a legitimate contractual or regulatory basis for a higher rate — the higher rate continues.

   Read the full decision (deka.in.th)

2. Supreme Court Judgment No. 6136/2551 (2008)

   A contractual damages debt (loss of use) bears statutory default interest under section 224 from the moment the debtor falls into default.

   The plaintiff's claim for loss of use (loss of benefit) arising from the defendant's breach of contract was a damages debt. The Court confirmed that once the defendant was in default, section 224 applied and the plaintiff could claim default interest at the statutory rate on the principal amount of that loss-of-use damages sum from the date of default.

   Read the full decision (deka.in.th)

Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.