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Sections 68–69 of the Indian Contract Act, 1872: Necessaries Supplied and Reimbursement of a Person Paying Another's Dues

A person who supplies necessaries suited to his condition in life to someone incapable of contracting, or to anyone the incapable person is legally bound to support, is entitled...

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Contract Law
Published
October 1, 2026
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Oct 5, 2026
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Last updated: October 2026Verified against: Government sources

Chapter V of the Act is headed "Of certain relations resembling those created by contract". Section 68 gives a claim to someone who supplies necessaries to a person incapable of contracting, or to a person that incapable person must support, to be reimbursed from the incapable person's property. Section 69 gives a claim to someone who pays money which another is bound by law to pay, and who is interested in the payment. If you have paid on someone else's behalf and need to recover it, a legal notice is often the first step.

Section 68: necessaries supplied to a person incapable of contracting

"If a person, incapable of entering into a contract, or any one whom he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person."

Take the elements one by one.

  • A person incapable of entering into a contract. The section does not define who this is; capacity to contract is dealt with in section 11, which has its own article in this series.
  • Or anyone he is legally bound to support. So supplies to the incapable person's dependants are also covered.
  • Necessaries suited to his condition in life. Two ideas: the items must be necessaries, and they must suit the person's condition in life. The section does not give a list.
  • Entitled to be reimbursed from the property of such incapable person. The claim is against the property, not against the person in a personal sense. The text says "from the property".

A footnote states that the property of a Government ward in Madhya Pradesh is not liable under this section; it refers to section 31(1) of the C.P. Court of Wards Act, 1899.

The Act's illustrations

The Act uses the older word "lunatic"; we restate it as a person of unsound mind.

IllustrationFactsResult
(a)A supplies B, a person of unsound mind, with necessaries suitable to his condition in life.A is entitled to be reimbursed from B's property.
(b)A supplies the wife and children of B, a person of unsound mind, with necessaries suitable to their condition in life.A is entitled to be reimbursed from B's property.

A modern example (ours). Hari Medicals supplies prescribed medicines and food supplements for several months to a patient, Mr Iyer, who is not able to manage his affairs. His family has not paid. Medicines suited to his condition are necessaries; Hari Medicals may claim reimbursement from Mr Iyer's property. The section does not say how the claim is enforced, and this article does not discuss procedure.

Section 69: reimbursement of a person paying money due by another

"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."

Elements:

  1. Money which another is bound by law to pay. The primary liability is on the other person.
  2. The payer is interested in the payment. The section requires an interest, not just goodwill.
  3. He therefore pays. The payment is made because of that interest.
  4. He is entitled to be reimbursed by the other.

The Act's illustration

B holds land in Bengal on a lease granted by A, the zamindar. The revenue payable by A to the Government is in arrear, and A's land is advertised for sale. Under the revenue law, the sale would annul B's lease. To prevent the sale and the annulment of his own lease, B pays the Government the sum due from A. A is bound to make good to B the amount so paid.

The facts show the "interest": B's own lease would be lost if A's dues remained unpaid.

A modern example (ours). Sagar leases a shop from landlord Tripathi. Tripathi has not paid the property tax due on the building, and the authority has issued a notice that the building will be sold at auction, which would end Sagar's tenancy. To protect his tenancy, Sagar pays the tax. Under s.69, Sagar is entitled to be reimbursed by Tripathi, who was bound by law to pay it. (The facts are invented and assume the law makes that tax Tripathi's liability.)

The two sections compared

PointSection 68Section 69
Who gets the claimSupplier of necessariesPerson interested in the payment who pays
Against whomThe incapable person (from his property)The person bound by law to pay
What must existIncapacity (or dependants), necessaries suited to condition in lifeA legal liability of another, payer's interest, payment
Contract needed?NoNo

What can the parties change?

Neither section has "unless a contrary intention appears" language. Both are in the chapter on relations resembling those created by contract, so they operate without a contract between the parties. Because they are claims for reimbursement, a contract that already deals with cost sharing may make them unnecessary. Section 73 says that obligations resembling contract, if not discharged, give the injured person the same compensation as for breach of contract; see sections 73 (second paragraph).

Practical points

  • Keep proof of supply and need: invoices, prescriptions, delivery notes and a note on why the item was a necessary.
  • Check the legal duty to pay for s.69; the claim depends on the other person being "bound by law" to pay.
  • Record your interest in the payment: why you had to pay (for example, a notice of sale that would hurt you).
  • Send a written demand for reimbursement with the receipts, and keep a copy.
  • Where a person acts for another without agreement, the next sections of the Act (s.70) deal with benefits enjoyed from non-gratuitous acts; see section 70.

Need help recovering what you paid?

If you supplied goods to someone who could not contract, or paid another's legal dues to protect your own position, a clear written demand with evidence of the payment is the right start. Our legal notice drafting service can prepare it for you. Send the invoices, the receipts and a note of the facts.

Key takeaways

  • A person who supplies necessaries suited to the condition in life of someone incapable of contracting, or of his legal dependants, can be reimbursed from the incapable person's property (s.68).
  • A person interested in the payment of money which another is bound by law to pay, and who pays it, is entitled to be reimbursed (s.69).
  • Neither claim depends on a contract between the parties.
  • The Act's illustrations: supplies to a person of unsound mind and his family, and a lessee paying the landlord's arrears of revenue.

Read next

Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.

Quick recapKey facts & short answers

Key Facts About Sections 68

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who is "incapable of entering into a contract"?

Section 68 does not define it. Capacity is dealt with in section 11 and has its own article.

Are the supplier's claims against the person or the property?

The text says the supplier is "entitled to be reimbursed from the property of such incapable person".

Ask the question before you sign — it is always cheaper than asking it afterwards.

— TaxClue Compliance Desk

Sections 68: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Section 68 does not define it. Capacity is dealt with in section 11 and has its own article.

The text says the supplier is "entitled to be reimbursed from the property of such incapable person".

Yes. It covers "any one whom he is legally bound to support", and the Act's illustration (b) concerns the wife and children.

The section does not define it. In the Act's illustration, B's lease would be annulled if the sale went ahead.

No. These are relations "resembling those created by contract".

A footnote says their property is not liable under section 68; see section 31(1) of the C.P. Court of Wards Act, 1899.