Reimbursement of person paying money due by another, in payment of which he is interested – Obligation of person enjoying benefit of non-gratuitous

Indian Contract Act – CHAPTER V.

OF CERTAIN RELATIONS RESEMBLING THOSE CREATED BY CONTRACT

Section 68. Claim for necessaries supplied to person incapable of contracting, or on his account.
If a person, incapable of entering into a contract, or any one whom he is legally bound to support, is supplied by another, person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person.

Illustrations
a) A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be reimbursed from B’s property.
b) A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life. A is entitled to be reimbursed from B’s property.

Section 69. Reimbursement of person paying money due by another, in payment of which he is interested –
A person who is interested in the payment of money which another is bound by law to pay, and who therefore pays it, is entitled to be reimbursed by the other.

Illustration
B holds land in Bengal, on a lease granted by A, the zamindar. The avenue payable by A to the Government being in arrear, his land is advertised for sale by the Government. Under the revenue law, the consequence of such sale will be the annulment of B’s lease. B, to prevent the sale and the consequent annulment of his own lease, pays to the Government the sum due from A. A is bound to make good to B the amount so paid.

Section 70. Obligation of person enjoying benefit of non-gratuitous act
Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered.

Illustrations
a) A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own. He is bound to pay A for them.
b) A saves B’s property from fire. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously.

Section 71. Responsibility of finder of goods

A person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee.

Section 72. Liability of person to whom money is paid or thing delivered by mistake or under coercion
A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.

Illustrations
a) A and B jointly owe 100 rupees to C. A alone pays the amount to C, and B, not knowing payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegally excessive.ng this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.
b) A railway company refuses to deliver up certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegally excessive.

AIR 2007 Orissa 37
A.K.GANGULY & I.MAHANTY,JJ.
(D)Constitution of India Art.300-A- Electricity Act (36 of 2003), S.43-Contract Act (9 of 1872) S.72 Illegal deprivation of ones property Electricity being a public property its supply is controlled by Statute – Elements of public law governs supply – Distribution licensee clothed with status of State: under Art.12 cannot enjoy monopoly status – Exaction of arrears of previous consumer from subsequent purchaser of property only on grounds that transaction is commercial – Prohibited under Statute – Is unjust enrichment and amounts to deprivation of ones property without authority of law.

AIR 2007 Gujarat 72
RAVI R TRIPATHI,J.
Government Saving Certificate Act (46 of 1959) S12 – Kisan Vikas Patra Rules (1988),R.6-Kissan Vikas Patra – Purchase of, by Mahila Co-operative Bank-Rules of 1988 did not permit Co-operative Bank to purchase Kisan Vikas Patra – But Post Office did not inform Bank this fact and accepted the amount – Post Office cannot refuse interest accrued thereof on its maturity – Principle of unjust enrichment would apply to Government and its agencies.

2 thoughts on “Reimbursement of person paying money due by another, in payment of which he is interested – Obligation of person enjoying benefit of non-gratuitous

  1. My name is Devaiah. I tried paying my House tax for the year 2014-15 on the 12th June 16 of an amount of INR 13726.00. My card transaction was complete and I got a text msg stating that the amount has been debited from my account and my reduced account balance was also highlighted. However, the BBMP screen states that the money is not received. The screen mentions my 2016 – 17 application no as 1400009409, Transaction / Challan id as 161020310. net amount as 13726.00, paid satus as ” Validity expired”.. I am unable to get a solution from my bank or the BBMP offices. I am concern about my money lost,. Please advise.

  2. My name is Devaiah. I tried paying my House tax for the year 2014-15 on the 12th June 16 of an amount of INR 13726.00. My card transaction was complete and I got a text msg stating that the amount has been debited from my account and my reduced account balance was also highlighted. However, the BBMP screen states that the money is not received. The screen mentions my 2016 – 17 application no as 1400009409, Transaction / Challan id as 161020310. net amount as 13726.00, paid status as ” Validity expired”.. I am unable to get a solution from my bank or the BBMP offices. I am concern about my money lost,. Please advise.

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