Section Code: 0241 - 0250

Thai Civil and Commercial Code


Part 5: Right of Retention

Section 241. No Right to Retention until Obligation is due

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.

Section 242. Right of Retention must be Compatible with Obligation and Public Order

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.

Section 243. Debtor Insolvency

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.

Section 244. Right of Retention until Obligation Performed

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

Section 245. Rights of Retention include Right to take Fruits of Property

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.

Section 246. Holder of property must take care of retained property

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.

Section 247. Holder may request reimbursement for retaining property

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.

Section 248. Retaining Property does not stop Statute of Limitations

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.

Section 249. Debtor can substitute the right of retention with other security

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

Section 250. Right to Retention is extinguished by the Loss of the Possession of Property

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.