Section 69 Contract Act: Reimbursement of person paying money due by another, in payment of which he is interested

Section 69 of Indian Contract Act: Reimbursement of person paying money due by another, in payment of which he is interested

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

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.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Contract Sec 2(h)

Legal Commentary & Landmark Judgments: Section 69

Section 69 of the Indian Contract Act, 1872 provides for the reimbursement of a person who pays money which another was bound by law to pay, and who has an interest in the payment.

Reimbursement of Person Paying Money: Section 69 provides 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.
Equitable Restitution Criteria: To claim reimbursement under this quasi-contractual doctrine, the claimant must prove an existing legal or pecuniary interest to protect, and that the defendant was legally bound to make the payment.

Key Landmark Precedents:

Govindram Gordhandas Seksaria v. State of Gondal (AIR 1950 PC 99): The Privy Council held that a purchaser of a mill who paid municipal taxes to avert municipal attachment of the property was interested in the payment, and was entitled under Section 69 to recover the sum from the seller who was legally bound to pay it.
Brook's Wharf and Bull Wharf Ltd v. Goodman Brothers [1937] 1 KB 409: The Court affirmed that where warehousemen paid customs duties compulsorily to prevent sale of goods, they were entitled to indemnity from the cargo owners who were primarily liable under law.

Legal Commentary:

Section 69 is frequently invoked in property transactions where a tenant or mortgagee pays outstanding municipal property taxes or electricity arrears to prevent disconnection or public auction, subsequently suing the defaulting owner for full reimbursement.

Section 69: Reimbursement of person paying money due by another, in payment of which he is interested

Section 69 of Indian Contract Act: Reimbursement of person paying money due by another, in payment of which he is interested

Legal Commentary & Landmark Judgments: Section 69