Subrogation can only be initiated by application and cannot be initiated by the people's court ex officio. In principle, an application for subrogation can only be made by the person applying for execution, but the person subject to execution can also make an application. This procedure is often ignored in judicial practice. In practice, some courts are eager to take measures as soon as they discover that the person subject to execution has due creditor's rights, and relax the procedural requirements in this regard.
However, in view of the fact that in judicial practice it is often difficult for the person applying for execution to know the status of the debtor's claims, if the people's court discovers during the execution that the person subject to execution has due creditor's rights, it should inform the person applying for execution and let it decide whether to The application is subject to subrogation. The application should generally be in writing. If it is made orally, the executive should record it in the transcript and have it signed or stamped by the applicant.
The application must state the facts about the creditor's rights and debts relationship between the person subject to execution and the third party, the type and amount of the creditor's rights, the facts and reasons for applying for execution by subrogation, and provide corresponding evidence. The creditor's right of subrogation means that when the debtor fails to exercise its due creditor's rights and causes damage to the creditor, the creditor can request the People's Court to subrogate the debtor's creditor's rights in its own name.
Legal basis:
Article 535 of the Civil Code: The debtor's failure to exercise its creditor's rights or the accessory rights related to the creditor's rights affects the creditor's due creditor's rights If this is achieved, the creditor may request the People's Court to exercise the debtor's rights against the counterparty in its own name as a subrogator, except where the rights belong exclusively to the debtor itself.
The scope of exercise of the right of subrogation is limited to the creditor's due claims. The necessary expenses incurred by the creditor in exercising the right of subrogation shall be borne by the debtor.