Indian Contract Act, 1872 · Chapter IV: Of the Performance of Contracts · Appropriation of payments
Section 60: Application of payment where debt to be discharged is not indicated
In plain words
If the debtor does not indicate which debt a payment is for and nothing else shows it, the creditor can apply it to any lawful debt that is due, even one that is time-barred.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
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: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 60
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M/S Sonali Power Equipments Pvt. Ltd. v. Chairman, Maharashtra State Electricity Board, Mumbai & Ors.
(i) Whether the Limitation Act applies to conciliation proceedings u/s.18 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), and even if not, whether time-barred debts can be referred to…
- Sgs Infratech Ltd v. Punjab and Sind Bank
- M/S Cobra Instalaciones Y Servicios, S.A and M/S Shyam Indus Power Solution Pvt. Ltd.(Jv) v. Haryana Vidyut Prasaran Nigam Ltd.(Hvpnl)
- Cobra Instalaciones Y Servicios, S.A and Mis Shyam Indus Power Solution Pvt. Ltd.(Jv) v. Haryana Vidyut Prasaran Nigam Ltd.(Hvpnl)
- M/S Cobra Instalaciones Y Servicios, S.A and M/S Shyam Indus Power Solution Pvt. Ltd.(Jv) v. Haryana Vidyut Prasaran Nigam Ltd.(Hvpnl)
- M/S Cobra Instalaciones Y Servicios, S.A and M/S Shyam Indus Power Solution Pvt. Ltd.(Jv) v. Haryana Vidyut Prasaran Nigam Ltd.(Hvpnl)
- Modern Construction Company Delhi v. Hitech Enterprises
- B.K. Educational Services Private Limited v. Parag Gupta and Associates
- Essar Steel Ltd. v. Union of India & Ors.
- T.N. Generation & Distbn. Corpn. Ltd. v. Ppn Power Gen. Co. Pvt. Ltd.
- Leela Hotels Ltd. v. Housing & Urban Development Corporation Ltd.
- Bharat Sanchar Nigam Ltd. & Anr. v. Bpl Mobile Cellular Ltd. & Ors.
- Delhi Development Authority, N.D. & Anr. v. Joint Action Committee, Allottee of Sfs Flats & Ors.
- Gurpreet Singh v. Union of India
- National Textile Corporation (Gujarat) v. State Bank of India and Ors.
- M/S. Industrial Credit and Development Syndicate Now Called I.C.D.S. Ltd. v. Smt. Smithaben H. Patel and Others
- Urban Improvement Trust, Jodhpur v. Gokul Narain and Anr.
- Prem Nath Kapur and Another Etc. v. National Fertilizers Corporation of India Limited and Others
- Mathunni Mathai v. M/S. Hindustan Organic Chemicals Ltd. and Anr.
- Khadi Gram Udyog Trust v. Shri Ram Chandraji Virajman Mandir Sarsaiya Ghat, Kanpur
- Commissioner of Licome-Tax, Madras v. T.S.Pl.P. Chidambaram Chettiar (Dead) Through L.Rs.