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CHAPTER IV OF THE PERFORMANCE OF CONTRACTS · Appropriation of payments

Section 60: Application of payment where debt to be discharged is not indicated

The Indian Contract Act, 1872

Where the debtor has omitted to intimate and there are no other circumstances indicating to which debt the payment is to be applied, the creditor may apply it at his discretion to any lawful debt actually due and payable to him from the debtor, whether its recovery is or is not barred by the law in force for the time being as to the limitation of suits.

Questions on this section

1 question in 4 of our papers cite Section 60.

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