THAILAND Law and Practice Contributed by: John Frangos, Nuanchun Somboonvinij, Santhapat Periera and Niti Muangkote, Tilleke & Gibbins
3.4.9 Taxes/Fees Payable If there is interest on a loan paid to a creditor, the creditor is generally liable to income tax. The fees for enforcement of a court judgment typi - cally range from 1% to 3% of the amount seized or attached or the value of the asset attached. 3.4.10 Other Relevant Issues The litigation process in Thailand can be lengthy. In some cases, the market value of an aircraft may decrease below the repayments owed on the aircraft due to the length of enforcement time. In addition, a debtor may not have or be able to access technical aircraft documentation, as there is no cen - tral authority in Thailand for keeping these records. A proper records management system should therefore be set among, or between, the parties involved. 4. Other Issues of Note 4.1 Issues Relevant to Domestic Purchase, Sale, Lease or Debt Finance of Aircraft Foreign entities are not eligible to register aircraft in Thailand under Thai law. A non-Thai lessor cannot therefore register an aircraft. In practice, this means that a Thai lessee-operator must register the aircraft. 4.2 Current Legislative Proposals A replacement to Thailand’s primary law governing aviation (the Air Navigation Act BE 2497 (1954)) has been discussed for a few years. It is uncertain if, or when, the new version of the Air Navigation Act will become law. The Air Navigation Act was last amended on 24 May 2019.
A foreign arbitral award can be enforced after the Thai court has recognised and enforced the award in line with the procedures of a normal lawsuit by filing an application for enforcement of a foreign arbitral award. In response to the application, the Thai court will look at procedural and due process matters related to the foreign arbitral proceeding and not the underlying merits. The Thai court will therefore usually grant an order to enforce the award unless it finds one of the grounds for setting aside an arbitral award as prescribed in Section 43 of the Arbitration Act BE 2545, which states similar conditions as set out in the UNCITRAL Model Law on International Commercial Arbitration. In addition, in line with Section 44 of the Act, the Thai court will refuse to enforce an arbitral award if it finds that an award dealing with a dispute cannot be settled by arbitration or if the enforcement would be against public order in Thailand or public policy. 3.4.5 Secured Parties’ Right to Take Possession of Aircraft A secured party will need the lessee’s or operator’s consent. 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions The common civil courts generally have authority to try to adjudicate civil cases concerning enforcement of a security agreement. 3.4.7 Summary Judgments or Other Relief There is no summary judgment procedure of the type of case found in Thai civil procedure law. The Thai court normally requires the entire case to be tried in court before rendering its judgment regarding the enforcement of any agreements, including security agreements. 3.4.8 Judgments in Foreign Currencies In rendering a judgment, the Thai court may, at its discretion, enter a judgment in a foreign currency (if requested in the complaint), even if the obligations of the debtor are originally expressed in a foreign cur - rency.
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