Mera Samvidhaan All of Indian Contract Act, 1872

Chapter IV · Of the Performance of Contracts

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

Section 60 · Chapter IV · Appropriation of payments · page 27 of the Act

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.

Section 60 of The Indian Contract Act, 1872 is reproduced in full above, as printed by India Code, with its footnotes and amendment markers. Read the whole Act, or browse every Act on Mera Samvidhaan.