Table of Contents
Section 68 – Necessaries Supplied to Incompetent Persons
If a person supplies necessaries suited to the condition in life of someone incapable of contracting (like a minor or lunatic), the supplier is entitled to reimbursement from the person’s property. Example: A supplies B, a lunatic, with clothes and food. A can recover the cost from B’s estate.Section 69 – Reimbursement of Money Paid by Interested Person
It states 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. There are two essentials for the application of Section 69- One person have interest in making payment– The person who makes the payment, and then claim its reimbursement must have an interest in making the payment. The purpose of making the payment should be bona fide protection of his interest.
- Another person is bound by law to pay– The provision is based on the principle that the plantiff having discharged the defendant`s debt is entitled to get payment from him.
Section 70 – Liability for Non-Gratuitous Acts
If someone lawfully provides goods or services without intention to do it for free, and the other party benefits, then compensation must be made to the supplier.Conditions:
For the application of this section, the following conditions are to be satisfied:- The act must be lawful.
- It must not be done gratuitously.
- The benefit must be enjoyed by the other party.
Indu Mehta vs. State of U.P (AIR 1987 ALL 309) – In this case Ms. Indu Mehta, a practicing advocate, was appointed as Assistant District Government Counsel. The appointment was found to be void in view of Section 24(2) CrPC, 1973. It was held that even though the appointment was void, the state enjoyed the benefit of her services, so she is entitled to recover the fees paid to her.
Section 71 – Responsibility of Finder of Goods
It states that, “A person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee” This section provides that the position of finder of goods is same as that of a bailee. For instance, like a bailee of goods, the finder is bound to take as much care of the goods as a man of prudence would under similar circumstances.Finder’s Right to Sell (as per Section 169):
Under Section 169, the finder of goods has the power to sell them when:- Real owner of the goods cannot be found or he refuses to pay lawful charges.
- Either the thing is in danger of perishing or of losing its value, or the lawful charges amount to two-thirds of the value of the goods.
Section 72 – Money or Goods Received by Mistake or Coercion
If someone receives money or goods by mistake or coercion, they are legally required to return it.
Case: Grindlays Bank vs C.D.I.T. (AIR 1997 Delhi 164) – The plaintiff bank mistakenly credited a sum of ₹79,601.99 to the defendant`s account. It was held that the bank was entitled to recover the amount from him along with 12% interest p.a. from the date of institution of the suit till realization.
Quick Recap Table
| Section | Topic | Key Principle |
|---|---|---|
| 68 | Necessaries to Incompetents | Right to reimbursement from property |
| 69 | Payment by Interested Person | Can recover money from debtor |
| 70 | Non-Gratuitous Act | Entitled to compensation if benefit enjoyed |
| 71 | Finder of Goods | Finder = Bailee, with duties & rights |
| 72 | Mistake or Coercion | Must return what is wrongly received |
💡 Final Word: Even without a formal contract, the law ensures justice through quasi contracts. They protect against unjust enrichment and impose duties where fairness demands it.
