Q: Discuss Section 59 of Indian Contract Act, 1872 when money is not demanded by creditor ?

Ans: According to section 59 of Indian Contract Act, 1872, when a debtor makes a payment with either express and implied intimation that the payment is to be applied to discharge of some particular debt, the payment if accepted and must be applied accordingly.
Scenario: Azam owes Babur among other debts Rs 1000 related to invoice #27 which falls due on first June.
1. Rs 300 ( invoice #5 )
2. Rs 567 ( invoice # 8)
3. Rs 853 (Invoice # 19)
4. Rs 1000 (Invoice # 27)
He owes Babur no other debt of that amount.  On the first June, Azam pays to Babur the amount of Rs 1000.

Appropriation: The payment is to be applied to the discharge of invoice # 27.

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