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Mortgage Priority Versus Subsequent Tax Lien
Mortgagee Bank v Revenue Department
Composite summary — not a single reported case. This entry distils a settled line of Thai Supreme Court (Dika / ฎีกา) authority for legal education. It is not a transcript of one reported judgment, and the heading is not a citable case number. Do not cite it as specific case law — consult a Thai-qualified lawyer for the authoritative Dika number and current application.
Facts
After the borrower's tax assessment, the Revenue Department recorded a lien on the mortgaged property and asserted priority in the subsequent execution sale.
Legal Issue
Whether a registered mortgage created before a Revenue Department tax assessment retains its priority against the later tax lien.
Holding
The Supreme Court has consistently held that a duly-registered mortgage retains priority over later-arising tax liens to the extent of the secured indebtedness at the time of registration.
Reasoning
Property-rights registration under the Land Code and Civil and Commercial Code §702-712 establishes priority by date of registration. Tax-lien priority under the Revenue Code is statutorily limited and does not retroactively defeat duly-registered prior security interests.
Significance
Validates the bankability of registered mortgages as senior security even where the borrower develops tax exposure later.
Practical Takeaway
Lenders should register mortgages promptly; the priority benefit hinges on registration date.
Cited Statutes
- Civil and Commercial Code §702-712
- Revenue Code §12
- Land Code B.E. 2497
This entry summarises a representative line of authority from the Thai Supreme Court (ฎีกา). It is intended for general legal education only and is not a substitute for advice from a Thai-qualified lawyer. Individual Dika case numbers are being verified against primary sources; until then these entries are presented as composite doctrinal summaries.
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