Supreme Court Judgment 2240/2568: Withdrawal of Lawsuit versus Release from Debt

Описание: This briefing document analyzes the Thai Supreme Court Judgment No. 2240/2568, which establishes a critical legal distinction between withdrawing a lawsuit against a guarantor and legally releasing that guarantor from their debt obligation. The Court ruled decisively that a creditor's withdrawal of a lawsuit against one co-guarantor, even following a settlement, does not constitute a "release of debt" under the Civil and Commercial Code. Consequently, this action does not automatically extinguish the liability of other co-guarantors. The remaining co-guarantor's obligation is only reduced by the specific amount paid by the first guarantor in their settlement. The Court affirmed that the remaining guarantor, after paying the debt, retains the full right of subrogation to seek reimbursement from both the principal debtor and the co-guarantor against whom the initial suit was withdrawn.