What is Doctrine of Subrogation?

The doctrine of subrogation allows a person who pays a debt or compensates a loss for another to step into the legal rights of the original creditor and recover that amount from the party actually responsible. It is an equitable principle that applies only after complete payment of the claim.

In India, Section 92 of the Transfer of Property Act, 1882 recognises subrogation in mortgage redemption, allowing a non-mortgagor or co-mortgagor who fully redeems a mortgage to assume the mortgagee’s recovery rights.

Section 140 of the Indian Contract Act, 1872 also embodies subrogation by granting a guarantor the creditor’s rights after discharging the debt.

Subrogation ensures fairness and prevents unjust enrichment.