Indian Contract Act

Introduction

Section 69 of the Indian Contract Act, 1872 (ICA) deals with the payment by an interested person. This Section is one of the five obligations which are known as quasi contracts. Quasi Contracts are contained in Sections 68 to 72 of ICA and these obligations are based on the principle that law as well as justice should try to prevent unjust enrichment.

Section 69 of ICA

• This section deals with the reimbursement of a person paying money due by another, in payment of which he is interested.
• It states that 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 to Section 69 of ICA

• B holds land in Bengal, on a lease granted by A, the zamindar. The revenue 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 a 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.

Conditions under Section 69 of ICA

The conditions of liability under Section 69 are as follows:

• The plaintiff should be interested in making the payment. It is not necessary that he should have a legal proprietary interest in the property in respect of which the payment is made.
• This section does not invite judicial limitation that a person who has no interest in the property can be interested in a payment in respect of that property.
• The plaintiff himself should not bound to pay. He should only be interested in making the payment in order to protect his own interest.
• The defendant should be under legal compulsion to pay.
• The plaintiff should have made the payment to another person and not to himself.
• The payment should not be a voluntary one.

Case Law

• In the case of Abid Hussain v. Ganga Sahai, it was held that the goods belonging to A were wrongfully attached in order to realise arrears of Government revenue due by G. A paid the amount to save the goods from sale. Held he was entitled to recover the amount from G.