Section 61: Application of payment where neither party appropriates

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1. 1. Under Section 61 of the Indian Contract Act, 1872, where neither the debtor nor the creditor makes any appropriation of a payment, the payment is applied:

   A.to the debts in order of time, and proportionately among debts of equal standingB.to all the debts proportionately, regardless of the order in which they were incurredC.first to the debt carrying the highest rate of interest, and then to the others in turnD.first to debts not barred by limitation, and only then to debts that are time-barred
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