Thailand Law Library

by Thailand Lawyer

Part 5: Right of Retention

If the possessor of a property belonging to another has an obligation in his favor relating to the property possessed, he may retain the property until the obligation is performed; but this does not apply, if the obligation is not yet due.

The provisions of the forgoing paragraph do not apply, if the possession begins by an unlawful act.

The right of retention does not exist if it is incompatible with the obligation assumed by the creditor, or with the instructions given by the debtor before or at the time of delivery of the property or if it is against public order.

In case of insolvency of the debtor, the creditor has the right of retention even if his claim is not yet due. If the insolvency has occurred or become known to the creditor after the delivery of the property, he can exercise the right of retention even if an obligation previously assumed by him or the instruction given by the debtor, opposes it.

The holder of a right of retention may exercise his right against the whole of the property retained until the obligation is wholly performed.

The holder of a right of retention may take the fruits of the property retained and appropriate them to the performance of the obligation in preference to other creditors.

Such fruits must first be appropriated to the interest on the obligation, and if there is any surplus must be appropriated to the principal.

The holder of a right of retention is bound to take such appropriate care of the property retained as might be expected from him in his situation.

The holder of a right of retention cannot use or let the property retained or give it as security, without the consent of the debtor; but this does not apply to such use as is necessary for the preservation of the property.

If the holder of a right of retention acts contrary to any provision of the foregoing paragraphs, the debtor may claim the extinction of the right.

If the holder of a right of retention incurs necessary expenses in respect to the property retained he may require the owner to reimburse him.

Subject to the provisions of Section 193/27, the exercise f a right of retention does not prevent the running of prescription against the obligation.

The debtor may claim the extinction of the right of retention on giving proper security.

A right of retention is extinguished by the loss of possession of the property; but this does not apply to the case where the property retained is let or pledged with the consent of the debtor.