Section 59 - Application of payment where debt to be discharged is indicated : Indian Contract Act 1872

What is Application of payment where debt to be discharged is indicated? Section 59 of Indian Contract Act 1872

Section 59 of Indian Contract Act 1872 : "Application of payment where debt to be discharged is indicated"

59. Where a debtor, owing several distinct debts to one person, makes a payment to him, either with express intimation or under circumstances implying that the payment is to be applied to the discharge of some particular debt, the payment, if accepted, must be applied accordingly.

Illustrations
(a) A owes B, among other debts, 1,000 rupees upon a promissory note which falls due on the first June. He owes B no other debt of that amount. On the first June A pays to B 1,000 rupees. The payment is to be applied to the discharge of the promissory note.

(b) A owes to B, among other debts, the sum of 567 rupees. B writes to A and demands payment of this sum. A sends to B 567 rupees. This payment is to be applied to the discharge of the debt of which B had demanded payment.

INDIAN CONTRACT ACT 1872

Section 41 - Effect of accepting performance from third person

Section 42 - Devolution of joint liabilities

Section 43 - Any one of joint promisers may be compelled to perform

Section 44 - Effect of release of one joint promiser

Section 45 - Devaluation of joint rights

Time and place for performance

Section 46 - Time for performance of promise, where no application is to be made and no time is specified

Section 47 - Time and place for performance of promise, where time is specified and no application to be made

Section 48 - Application for performance on certain day to be at proper time and place

Section 49 - Place for performance of promise, where no application to be made and no place fixed for performance

Section 50 - Performance in manner or at time prescribed or sanctioned by promisee