The decision of the 3rd Civil Chamber of the Court of Cassation (“Court of Cassation”) dated 07/04/2025, file number 2025/590, decision number 2025/1899 (“Decision”) was published in the Official Gazette dated June 10, 2025, issue number 32922.
The Decision concerns the procedural and legal irregularity of the court converting the foreign currency payment made by the consumer plaintiff for a package tour fee into Turkish lira at the exchange rate on the payment date, despite the plaintiff’s claim for the Turkish lira equivalent as of the date of the lawsuit.
In summary, the facts subject to the Decision are as follows:
- The plaintiff consumer purchased a package tour service amounting to 18,880.80 Euros but, having not benefited from the service at all, requested a refund of this amount. Within the scope of the option right regulated under Article 99 of the Turkish Code of Obligations, the plaintiff demanded the Turkish lira equivalent of the foreign currency paid calculated at the exchange rate on the date of the lawsuit, May 5, 2021 (18,919.54 TRY).
- However, the first-instance court calculated the amount based on the exchange rate on the date the foreign currency payment was made, October 25, 2019, and ruled in favor of the plaintiff accordingly.
Referring to the provision of Article 99/3 of the Turkish Code of Obligations, which states:
“If the debt is stipulated in a currency other than the national currency, and unless the contract explicitly requires payment in the original currency or a similar expression is present, upon failure to pay on the due date, the creditor may request payment of the debt either in the original currency or in the national currency calculated at the value prevailing on the due date or the actual date of payment.”
The Court of Cassation emphasized that:
- The plaintiff clearly exercised the option right in the lawsuit petition by requesting the Turkish lira equivalent of the foreign currency paid as of the date of the lawsuit.
- Despite this explicit preference, the lower court’s calculation based on the exchange rate at the payment date and its ruling accordingly is contrary to procedural rules and the law.
Accordingly, the Ministry of Justice’s request for retrial in the interest of the law was accepted, and the first-instance court’s decision was overturned.
The full text of the Decision can be accessed at: https://www.resmigazete.gov.tr/eskiler/2025/06/20250610-9.pdf
Best Regards,
Balay, Eryiğit & Erten
