Solve.
X owes Y three sums, one for Rs. 2,000 which is barred by limitation, second for Rs. 3,000 which is not barred, and third for Rs. 4,000 which is not barred. X sends Rs. 1,000 to Y. Can Y appropriate Rs. 1,000 towards Rs. 2,000
(a) if X gives no direction in this regard
(b) if X marks Y to appropriate Rs. 1,000 towards the third debt of Rs. 4,000?

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Solution

Section to which the given problem relates: Section 59.
Decision:
case (a) Y can appropriate Rs. 1,000 towards Rs. 2,000.
case (b) Y cannot appropriate Rs. 1,000 towards Rs. 2,000. He must appropriate Rs. 1,000 towards Rs. 4,000 only because the creditor is bound to follow the instruction of debtor regarding application of the payment.

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