Q. ‘B’ holds land in Bihar on a lease granted by ‘A’, the landlord. The revenue payable by ‘A’ to the Government being in arrear, the land is advertised for sale by the Government. Under the revenue law, the consequence of such sale will be the annulment of B’s lease. ‘B’ to prevent the sale pays to the Government the sum due from ‘A’. Is ‘A’ bound to make good to ‘B’ the amount so paid?
Delhi Judicial Service Exam. 199
Civil Services (I.A.S.) Exam. 1974,1976
19th Bihar Judicial Service Exam.1979
West Bengal Judicial Service Exam.1999
U.P. Civil Services Main Exam. 1995
Ans: Yes, ‘A’ is bound to make good to ‘B’ the amount paid by ‘B’ to the Government— Section 69 (Reimbursement of person paying money due by another, in payment of which he is interested).
Reasons: This problem is based on Section 69 of Indian Contract Act which 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.”
In this problem ‘B’ is interested to pay money due as arrear to the Government to prevent the sale of land as well as its consequence which will result in annulment of B’s lease, and also pays to the Government the sum due from ‘A’.
Thus, in this problem ‘A’ is bound to make good to ‘B’ the amount paid by him to the Government in view of the provision made in Section 69 of Indian Contract Act.
Note: (1) See Illustration attached to Section 69
(2) It is notable that Section 69 applies only when the plaintiff has made the payment to another person and not to himself. Thus, where a certain Government was the tenant of a land and paid to itself out of the rent due to the landlord the arrears of land revenue due to itself, the Government cannot recover from the landlord because it was a transfer of money from one head to another within the Government and not payment to another person and although it was done to save the land from being sold in execution yet it does not come within the ambit of Section 69-Secretary of State for India v. Fernandes, (1907) 30 Mad 375.
Kishor Prasad
