Chapter V - Of Certain Relations Resembling Those Created by Contract
Section 72
Section 72: Money or goods received by mistake or coercion
Section 72 requires repayment of money or return of things received by mistake or under coercion. It focuses on the receipt and the circumstances of the payment or delivery.
On this page
Need advice on Section 72?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.
Illustrations
(a)A and B jointly owe 100 rupees to C, A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.
(b)A railway company refuses to deliver up certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegally excessive.
Rule and business relevance
The statutory illustrations include duplicate payment of the same joint debt and an excessive unlawful charge paid to secure delivery of goods. The recipient must repay or return the money or thing within the rule's scope.
Limits and related provisions
A sender's later regret is not itself proof of mistake or coercion. Identify the actual legal and factual basis, the amount or thing received and any applicable limitation or other defence. Do not conflate this restitution question with a separate claim for contractual profits or penalties.
Hypothetical business example
Hypothetical: an invoice is paid twice because one payer does not know it has already been settled. The recipient reconciles the two payments and the underlying debt rather than treating the duplicate as an extra entitlement.
Practical decision flow
Trace the payment or delivery and establish the mistake or coercive circumstances.
Reconcile what was actually due and identify the amount or item to be restored.
Seek repayment or return with the evidence and assess any applicable legal limits or dispute.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Trace the payment or delivery and establish the mistake or coercive circumstances.
- Reconcile what was actually due and identify the amount or item to be restored.
- Seek repayment or return with the evidence and assess any applicable legal limits or dispute.
Avoid
- A sender's later regret is not itself proof of mistake or coercion. Identify the actual legal and factual basis, the amount or thing received and any applicable limitation or other defence. Do not conflate this restitution question with a separate claim for contractual profits or penalties.
Glossary
- Mistaken payment
- Payment made under the mistake relevant to the statutory claim.
- Repayment or return
- The remedy described for the money or thing received.
Frequently asked questions
Can duplicate payment of an already paid debt fall within the section?
Yes. The statutory illustration expressly addresses that situation.
Is an invoice dispute automatically a Section 72 claim?
No. Establish the payment or delivery and the required mistake or coercion.
Does the section concern goods as well as money?
Yes. It refers to money paid or anything delivered.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026