Thailand Law Library

by Thailand Lawyer

Part 6: Preferential Rights

A holder of a preferential right has, according to the provisions of this Code or other laws, a right as to the property of his debtor to receive therefrom performance of an obligation due to him in preference to other creditors.

 

1. General Preferential Rights

A person in whose favor an obligation exist based upon any of the following grounds has a preferential right in the whole property of the debtor:

1. Expenses for the common benefit
2. Funeral expenses
3. Taxes and duties, and money to which an employee entitled for the service rendered to the debtor who is his employer.
4. Supplies of daily necessaries.

The preferential right on account of expenses for the common benefit is for expenses incurred for the common benefit of all the creditors in regard to preservation, liquidation or distribution of the debtor’s property.

If any such expense was not incurred for the benefit of all the creditors, the preferential right only exist against those creditors for whose benefit it was incurred.

The preferential right on account of funeral expenses is for such funeral expenses as are accordant to the station in life of the debtor.

The preferential right on account of taxes and rates is for all land, property or other taxes or local rates due from the debtor for the current year and the preceding year.

The preferential right on account of money, to which an employee is entitled for services rendered to the debtor who is his employer, is for basic pay, overtime pay, holiday pay, holiday overtime pay, severance pay, special severance pay, and other money to which the employee is entitled for services rendered to, for four months back not exceeding one hundred thousand baht for each employee.

The preferential right on account of supplies of the daily necessaries is for supplies for six months back of food, drink, light, firewood and charcoal, necessary for the living of the debtor, of members of his family, who live with him and whom he is bound to support, and of his servants.

 

2. Special Preferential Rights
(a) PREFERENTIAL RIGHTS IN MOVABLES

A person in whose favor an obligation exists based upon any of the following grounds has a preferential right in particular movables of the debtor:

1. Hiring of an immovable.
2. Lodging in an inn.
3. Carriage of passengers of goods.
4. Preservation of movables.
5. Sale of movables.
6. Supply of seeds, young plants or manure.
7. Agricultural or industrial services.

The preferential right on account of the hiring of an immovable is for the hire of the immovable and for other obligations of the hired arising from the relation of hiring, and is in the movables of the hirer which are in or on the immovable.

The preferential right of the letter of land is in such movables as have been brought by the hirer upon the land hired or into buildings subservient to the use of such land, in such movables as are destined for the use of such land and in such fruits of the land as are in the possession of the hirer.

The preferential right of the letter or a building is in such movables as have been brought into the building by the hirer.

If a hirer of immovable property is transferred or sublet, the preferential right of the original letter extends to the movables brought by the transferee or sub-hirer into the property. The same applies to the money which the transferor or the sub-letter is to receive from the transferee or sub-hirer.

In case of a general liquidation of the property of the hirer, the preferential right of the letter is only for the rent and other obligations of the last preceding, the current and the next following rent period and for such damages as have arisen during the last preceding and the current rent period.

If the letter has received security money, he has a preferential right only with regard to that part of his claim which is not covered by the security money.

The preferential right on account of lodging in an inn is for what is due to the proprietor for lodging and other services afforded to the traveler or guest in satisfaction of his needs, including disbursements, and is in the luggage or other property of the traveler or guest which is in the inn, hotel or other such place.

The letter of an immovable property or the proprietor of an inn, hotel or other such place may enforce his preferential right in the same manner as a pledgee. The provisions of this Code concerning Enforcement of Pledge apply mutatis mutandis.

The preferential right on account of carriage is for charges for the carriage of a passenger or goods and for accessory expenses, and is in all goods and luggage in the hands of the carrier.

The letter of an immovable, the proprietor of an inn, or the carrier may enforce his preferential right against movables belonging to a third person in the case contemplated in the preceding eight sections, unless he knew in due time that they belong to the third person.

If such movables have been stolen or lost the provisions of the law concerning recovery of possession shall apply.

The preferential right on account of the preservation of a movable is for the expense of the preservation of movable, and is in such movable.

The preferential right exists also for necessary expenses incurred for the purpose of having a right relating to a movable preserved, acknowledged or enforced.

The preferential right on account of the sale of a movable is for the price and interest thereon, and is in such movable.

The preferential right on account of the supply of seeds, young plants or manure is for the price of seeds, young plants or manure and interest thereon, and is in the fruits which have grown on the land for which those things have been used within one year after their use.

The preferential right on account of agricultural and industrial services is as to the person who rendered agricultural service for wages for one year back, and as to a person who rendered industrial services for wages for three months back, and is in the fruits or manufactured things produced by his service.

 

(b) PREFERENTIAL RIGHTS IN IMMOVABLES

A person in whose favor an obligation exists based upon any of the following grounds has a preferential right in a particular immovable of the debtor:

1. Preservation of an immovable
2. Work done upon an immovable
3. Sale of an immovable

The preferential right on account of the preservation of an immovable is for the expense of preservation of an immovable, and is in such immovable.

In case of the foregoing paragraph the provisions of Section 269 paragraph 2 apply correspondingly.

The preferential right on account of work done upon an immovable is for charges for the work done upon an immovable of the debtor by a builder an architect or a contractor, and is in such immovable.

This preferential right exist only if there is a present increase of the value of such immovable due to such work, and is only in such increased value.

The preferential right on account of the sale of an immovable is for the price and interest thereon, and is in such immovable.