Section 61 Indian Contract Act 1872
Section 61 of the Indian Contract Act 1872 is about Application of payment where neither party appropriates. It is under “Appropriation of payments” of CHAPTER IV of the Act. CHAPTER IV is titled OF THE PERFORMANCE OF CONTRACTS.
Application of payment where neither party appropriates
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 proportionally.
Section 60 Indian Contract Act 1872 (Application of payment where debt to be discharged is not indicated)