Integrity Legal - Law Firm in Bangkok | Bangkok Lawyer | Legal Services Thailand Back to
Integrity Legal

Legal Services & Resources 

Up to date legal information pertaining to Thai, American, & International Law.

Contact us: +66 2-266 3698

ResourcesThai Civil and Commercial CodeBook2Obligations Part II Subrogation Part III Exercising Debtor's Claims

Obligations Part II Subrogation Part III Exercising Debtor's Claims

Page: 38

Section: 231 - 236

Section 231.- If properties mortgaged, pledged or otherwise subject to a preferential right, are insured, the mortgage, pledge or other preferential right extends to the claim against the insurer.

In case of immovable property, the insurer shall not pay the indemnity to the assured until he has given notice of his intention to do so to the mortgagee or other preferred creditor, and has not within one month from such notice received any objection to the payment, provided always that the insurer knew or ought to have known of the mortgage or other preferential rights ; however, any right registered in the Land Registry is deemed to be known to the insurer. The same rule shall apply to mortgage of movables allowed by law.

In case of movable property, the insurer may pay the indemnity to the assured directly, unless he knew or ought to have known of the pledge or other preferential right.

The insurer is not liable to the creditor if the insured property is restored or a substitute for it is provided.

The same rule shall be applied mutatis mutandis in case of expropriation as well as in case of indemnity due to the owner of the property for destruction or damage.


Section 232.- If under the foregoing Section, a sum of money is being substituted for the property destroyed or damaged, such sum shall in no case be delivered to the mortgagee, pledgee or other preferred creditor before the obligation secured is due, and if the parties cannot come to an agreement with the debtor, each of them is entitled to demand that the said sum be deposited at the Deposit Office for their common benefit unless the debtor gives proper security.





Section 233.- If, to the prejudice of the creditor, the debtor refuses or neglects to exercise a claim, the creditor may, in order to protect his obligation, exercise such claim in his own name on behalf of the debtor, except those which are purely personal to the debtor.


Section 234.- The creditor, who exercises a claim belonging to his debtor, must summon the debtor to appear in the action.


Section 235.- A creditor may exercise a claim belonging to the debtor for the whole amount due to the debtor, without regard to the amount due to him. But the defendant may satisfy the creditor by paying the amount due to him alone, provided that if the original debtor has joined as a plaintiff he may proceed to judgment for the balance.

In any case the creditor cannot obtain more than what is due to him.


Section 236.- The defendant may set up against the creditor all defences which he may have against the debtor, excepting those which arose after the entry of the charge.