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.
Source & version
Official text: India Code (official) ↗
Official India Code text: The Indian Contract Act, 1872 (9 of 1872), English PDF (bitstream 123456789/2187/2/A187209.pdf, 568,075 bytes) fetched directly from indiacode.nic.in (Akamai edge, DNS via dns.google) on 2026-07-16. Extracted via pdftotext 26.07 -bbox and @nexlex/ingest inline parser. Automated parse; footnotes/amendment history excluded; illustrations restored via illustration-aware re-extraction on 2026-07-19; spot-verified; full clause-level proofread pending. Sections 2-3 repaired 2026-07-25 by re-extraction from the same source PDF (568,075 bytes, sha256 d756d45a…): a page-10 footnote block had been absorbed into s.2, splitting definitions (b)-(j) into s.3 and leaving s.3's own provision missing (D-027).
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