Section 59Application of payment, where debt to be discharged is indicated

s. 59

59. 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. Illustrations (a) A owes B, among other debts, 1,000 Taka 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 Taka. 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 Taka. B writes to A and demands payment of this sum. A sends to B 567 Taka. This payment is to be applied to the discharge of the debt of which B had demanded payment.