Where the debtor has omitted to intimate and there are no other circumstances indicating to which de...........

Indian Contract Act (ICA)1872 Performance of a Contract

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 limitations of suits

the creditor may apply it in accordance with the usage of trade

the creditor may apply it in accordance with the contract

the creditor may apply it in the manner as agreed by both the parties

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Explanation:

Section 60 –
60. Application of payment where debt to be discharged is not indicated. 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 limitations of suits.