Section Code: 0233 - 0240
Thai Civil and Commercial Code
EFFECT OF OBLIGATIONS
Part 3: Exercising Debtor’s Claims
Section 233. Creditor Subrogation of Debtor’s Rights
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 of behalf of the debtor, except those which are purely personal to the debtor.
Section 234. Notification of Subrogation
The creditor who exercises a claim belonging to his debtor must summon the debtor to appear in the action.
Section 235. Debtor’s Debtor may satisfy the Creditor’s Claim Directly
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. Debtor’s Debtor may use defenses against the Creditor’s Claim
The defendant may set up against the creditor all defenses which he may have against the debtor, excepting those which arose after the entry of the action.
Part 4: Cancellation of fraudulent acts
Section 237. Creditor has a Right to Prevent the Cancellation of Debtor’s Claims
The creditor is entitled to claim cancellation by the Court of any juristic act done by the debtor with knowledge that it would prejudice his creditor; but this does not apply if the person enriched by such act did not know, at the time of the act, or the facts which could make it prejudicial to the creditor, provided, however, that in case of gratuitous act the knowledge on the part of the debtor alone is sufficient.
The provisions of the foregoing paragraph do not apply to a juristic act whose subject is not a property right.
Section 238. Cancellation cannot prejudice the rights of third party
The cancellation under the foregoing section cannot affect the right of a third person acquired in good faith.
The foregoing paragraph does not apply if the right is acquired gratuitously.
Section 239. Cancellation is only allowed to favor creditors
Cancellation operates in favor of all the creditors.
Section 240. Statute of Limitations for Wrongful Cancellation is 1 Year
A claim for cancellation cannot be brought later than one year from the time when the creditor knew of the cause of cancellation, or later than ten years since the act was done.