Section 61, Indian Contract Act, 1872 — Application of payment where neither party appropriates

Chapter IV · Of the Performance of Contracts

61Application of payment where neither party appropriates.

Section 61 · Chapter IV · Appropriation of payments · page 27 of the Act

Where neither party makes any appropriation, the payment shall be applied in discharge of the debts in order of time, whether they are or are not barred by the law in force for the time being as to the limitation of suits. If the debts are of equal standing, the payment shall be applied in discharge of each proportionably.

Section 61 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.