Promise may dispense with or remit performance of promise
Section 63 of the Indian Contract Act, 1872 deals with promise may dispense with or remit performance of promise. Every promisee may dispense with or remit, wholly or in part, the performance of the promisee made to him, or may extend the time for such performance1 , or may accept instead of it any satisfaction which he thinks fit. The Act came into force on 01 Sep 1872.
Every promisee may dispense with or remit, wholly or in part, the performance of the promisee made to him, or may extend the time for such performance1 , or may accept instead of it any satisfaction which he thinks fit.
Illustrations
(a) A promises to paint a picture for B. B afterwards forbids him to do so. A is no longer bound to perform the promise.
(b) A owes B 5,000 rupees. A pays to B, and B accepts, in satisfaction of the whole debt, 2,000 rupees paid at the time and place at which the 5,000 rupees were payable. The whole debt is discharged.
(c) A owes B 5,000 rupees. C pays to B 1,000 rupees, and B accepts them, in satisfaction of his claim on A. This payment is a discharge of the whole claim2 .
(d) A owes B, under. a contract, a sum of money, the amount of which has not been ascertained. A, without ascertaining the amount, gives to B, and B, in satisfaction thereof, accepts, the sum of 2,000 rupees. This is a discharge of the whole debt, whatever may be its amount.
(e) A owes B 2,000 rupees, and is also indebted to other creditors. A makes an arrangement with his creditors, including B, to pay them a 3 [composition] of eight annas in the rupee upon their respective demands. Payment to B of 1,000 rupees is a discharge of B's demand.
Section 63, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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National Insurance Co. Ltd. v. Boghara Polyfab Pvt. Ltd.
Court's Decision & Legal Precedent
Judgment of Main Case order-7.pdf 2008-09-18. CA 5733/2008. Raveendran reportable. DATE-CHECK flagged policy dates (false positive); body is the named 18 Sep 2008 reportable. A full-and-final discharge voucher is accord and satisfaction (Contract 63 remission of performance) only if voluntary; financial duress or a genuine dispute about the voucher leaves the claim alive. Map contract-act 63 only. Do not pad Arbitration Act 11 (already filled).
On this section: A full-and-final discharge voucher remits performance under s.63 only if it is a voluntary accord and satisfaction, not if obtained under financial duress (Boghara Polyfab).
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 63
What have the courts held on Section 63 of the Indian Contract Act?
National Insurance Co. Ltd. v. Boghara Polyfab Pvt. Ltd. (18 Sep 2008) is the leading judgment on this section among those set out below: A full-and-final discharge voucher remits performance under s.63 only if it is a voluntary accord and satisfaction, not if obtained under financial duress (Boghara Polyfab).
How do I find court cases under Section 63 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 63, section 63 Contract Act, section 63 of the Indian Contract Act. People searching for it also type indian contract act 63. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with National Insurance Co. Ltd. v. Boghara Polyfab Pvt. Ltd. (18 Sep 2008).
When did Section 63 of the Indian Contract Act come into force?
Section 63 of the Indian Contract Act, cited as Contract Act 63, 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
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
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 14 Oct 2026. This page is not a substitute for legal advice.