Section59
The Indian Contract Act, 1872

Application of payment where debt to be discharged is indicated

In force From 01 Sep 1872 Act 9 of 1872 As on 15 Oct 2026

Act 9 of 1872 Ministry Law and Justice Enacted 25 Apr 1872 In force 01 Sep 1872

Section 59 of the Indian Contract Act, 1872 deals with application of payment where debt to be discharged is indicated. 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. The Act came into force on 01 Sep 1872.

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.

Section 59, The Indian Contract Act, 1872 (Act 9 of 1872).

Questions about Section 59

What does Section 59 of the Indian Contract Act deal with?

Section 59 of the Indian Contract Act is headed "Application of payment where debt to be discharged is indicated". 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.

How do I find court cases under Section 59 of the Indian Contract Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 59, section 59 Contract Act, section 59 of the Indian Contract Act. People searching for it also type insurance contracts act 59. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

When did Section 59 of the Indian Contract Act come into force?

Section 59 of the Indian Contract Act, cited as Contract Act 59, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.