Mr. L let out his residential house to Mr. M for 50,000 p.m. for a period of one year. According to the Rent agreement, electricity bill will be…

CA Foundation · Business Laws · PYQS · September 2024
Mr. L let out his residential house to Mr. M for 50,000 p.m. for a period of one year. According to the Rent agreement, electricity bill will be paid by Mr. L. But Mr. L could not pay electricity dues up to 5 months, due to his financial hardships. The Electricity Board sent the notice of disconnection, if it is not paid within a week's time. To avoid all this, Mr. M paid the electricity bill of 50,000 with penalty. Later on, L refused to reimburse - 50,000 and argued that he has paid bill voluntarily because of his own interest. Decide with reference to provisions of the Indian Contract Act, 1872 whether Mr. M is entitled to be reimbursed by Mr. L?

Suggested Answer and Working Notes:

According to Section 69 of the Indian Contract Act,1872, 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 the instant case, Mr. M paid the electricity bill to avoid the disconnection that was pending due to Mr. L's failure to fulfil his contractual obligation. Hence, Mr. M is entitled to be reimbursed - 50,000 from Mr. L.

Topics: The Indian Contract Act, 1872, The Indian Contract Act, 1872, The Indian Contract Act, 1872, The Indian Contract Act, 1872

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