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Section 49: Place for the performance of promise, where no application to be made and no place fixed for performance

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 48 All 266 Sections of Indian Contract Act Section 50

Legal Commentary & Landmark Judgments: Section 49

Section 49 of the Indian Contract Act, 1872 prescribes the procedure where no place is fixed for performance and no application is to be made, requiring the promisor to apply to the promisee to appoint a reasonable place for the performance of the promise, and to perform it at such appointed place.

  • Absence of Fixed Place and Application: Applies where the contract fails to specify the geographic venue of performance and imposes no requirement for prior application by the promisee.
  • Promisor's Statutory Duty to Request Appointment: Imposes an affirmative statutory obligation on the promisor to seek the promisee's appointment of a reasonable place for performance.
  • Interplay with Common Law 'Debtor Must Seek Creditor' Doctrine: Where the obligation is the repayment of a debt and the promisor fails to apply under Section 49, Indian courts apply the English common law maxim that the debtor must seek out the creditor and pay him at his place of business.
Key Landmark Precedents:
  • Bhagwandas Goverdhandas Kedia v. Girdharilal & Co. (1966) 1 SCR 656 / AIR 1966 SC 543: The Constitution Bench reviewed the territorial aspects of contractual performance and formation, observing that place of performance determines jurisdiction under civil procedural law.
  • Kalyanji v. Ramji AIR 1924 Bom 357: The Bombay High Court held that the common law rule that the debtor must seek the creditor applies in India to determine the place of payment where no place is specified and no application is made under Section 49.
  • S.P. Consolidated Engineering Co. v. Union of India AIR 1966 Cal 259: Ruled that where a promisor fails to apply to the promisee to appoint a place under Section 49, the common law doctrine governs, vesting territorial jurisdiction where the creditor resides or carries on business.
Courtroom Practice & Strategic Litigation Guidance:

To establish territorial jurisdiction in recovery suits under Section 20(c) CPC where the contract is silent on venue, plead Section 49 alongside the doctrine 'debtor must seek creditor'. Demonstrate that because the debtor failed to apply for the appointment of a place, the money was payable at the creditor's registered office, giving the local court complete territorial jurisdiction.

Section 48 All 266 Sections of Indian Contract Act Section 50