Indian Contract Act, 1872 · Chapter V: Of Certain Relations Resembling Those Created by Contract
Section 70: Obligation of person enjoying benefit of non-gratuitous act
In plain words
If a person lawfully does something for another, or delivers something to them, not intending it as a gift, and the other enjoys the benefit, the other must pay compensation for it or return it.
Example: A tradesman leaves goods at B's house by mistake and B uses them as their own. B must pay for them. But someone who saves property from fire intending to act for free cannot claim compensation.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Read the in-depth explanation, with key Supreme Court rulings ↓
Official text
Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered1 .
Illustrations
(a) A, a tradesman, leaves goods at Bs house by mistake. B treats the goods as his own. He is bound to pay A for them.
(b) A saves Bs property from fire. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Understanding this section
Section 70 makes a person who enjoys the benefit of something lawfully done or delivered by another, who did not intend to act gratuitously, liable to pay compensation or restore the thing. It is the most frequently used quasi-contract provision, especially in claims against the government.
Three conditions
- The thing was done or delivered lawfully.
- It was not intended to be gratuitous.
- The other person enjoyed the benefit, having the option to accept or reject it.
Government contracts
Article 299 requires contracts with the government to be in a prescribed form; an informal arrangement is not a binding contract. But if a contractor does work or supplies goods under such an arrangement and the government accepts and uses them, section 70 lets the contractor recover reasonable compensation. The section is founded on equity, not on contract.
Limits
- It does not apply where the work was meant as a favour.
- A person cannot force a benefit on another; the recipient must have had the choice to accept or reject.
- Compensation is for the benefit actually received, not the contract price claimed.
Key Supreme Court rulings
Anita Rani v. Ashok Kumar 2021 INSC 905
Once the defence that the payments were gratuitous failed, section 70 came into play and the respondents who had received and enjoyed the money were bound to compensate the appellant.
Common mistakes
- Applying section 70 to gratuitous acts.
- Using it to claim the full contract price instead of compensation for the benefit received.
- Forgetting that the recipient must have had the option to reject the benefit.
Read with: Article 299 Constitution, Section 72 Indian Contract Act, 1872
Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.
Supreme Court judgments citing the section 70
- Union of India v. Tata Communications Ltd
- M/S Plus91 Security Solutions v. Nec Corporation India Private Limited Erstwhile Nec Technologies Private Limited
- Maruti Traders v. Itron India Pvt Ltd
- Jindal Rail Infrastructure Limited v. Union of India & Anr
- Rampal v. Anju @ Anju Bala & Ors
- Bharat Sanchar Nigam Ltd v. Vihaan Networks Ltd
- Ntpc Ltd v. Tata Projects Ltd
- M/S. A.G. Enviro Infra Projects Pvt. Ltd v. M/S. J.S. Enviro Services Pvt. Ltd
- Nhpc Limited v. Jaiprakash Associates Ltd
- Anita Rani v. Ashok Kumar & Ors
- Sri K. Marappan (Dead) Through Sole Lr. Balasubramanian v. The Superintending Engineer T.B.P.H.L.C. Circle Anantapur
- Mahanagar Telephone Nigam Ltd. v. Tata Communications Ltd.
- Orissa Industrial Infrastructure Development Corporation v. M/S. Mesco Kalinga Steel Ltd. & Ors.
- H.R. Basavaraj (Dead) by His L. R. S & Anr. v. Canara Bank & Ors.
- Steel Authority of India Ltd. v. Gupta Brother Steel Tubes Ltd.
- Govt. of A.P. and Ors. v. K. Brahmanandam and Ors.
- Food Corporation of India and Ors. v. Vikas Majdoor Kamdar Sahkari Mandli Ltd.
- Saurabh Prakash v. Dlf Universal Ltd.
- National Fertilizers Ltd. & Ors. v. Somvir Singh
- M/S. Sahakari Khand Udyog Mandal Ltd. v. Commissioner of Central Excise and Customs
- Allahabad Bank Etc. Etc. v. Bengal Paper Mills Co. Ltd. and Ors. Etc.
- M.D., Army Welfare Housing Organisation v. Sumangal Services Pvt. Ltd.
- Oil & Natural Gas Corporation Ltd. v. Saw Pipes Ltd.
- Indu Engineering and Textiles Ltd v. Delhi Development Authority
- K.S. Satyanarayana v. V.R. Narayana Rao
- Mohd. Swaleh v. Union of India and Ors.
- M/S. Bejgam Veeranna Venkata Narasimloo Etc. v. State of Andhra Pradesh and Ors.
- Beharilal and Anr. v. Smt. Bhuri Devi and Ors.
- Aries Advertising Bureau v. C.T. Devaraj (Dead) by Lrs.
- Rattan Chand Hira Chand v. Askar Nawaz Jung (Dead) by L.Rs. and Ors.
- U.P Hotels Etc. v. U.P. State Electricity Board
- Union of India v. J. K. Gas Plant
- Jit Ram Shiv Kumar and Ors. Etc. v. State of Haryana and Anr. Etc.
- State of Uttar Pradesh v. Kishori Lal Minocha
- Union of India v. Surjit Singh Atwal
- Bihar Eastern Gangetic Fishermen Co-Operative Society Limited v. Sipahi Singh &.Others
- Union of India v. Sita Ram Jaiswal
- A. Damodaran & Anr. v. State of Kerala & Ors.
- Kuju Collieries Ltd. v. Jharkhand Mines Ltd. & Ors.
- Ramagya Prasad Gupta & Ors. v. Murli Prasad & Ors .
- Piloo Dhunjishaw Sidhwa v. Municipal Corporation of the City of Poona
- Mulamchand v. State of Madhya Pradesh
- K. P. Chowdhary v. State of Madhya Pradesh & Ors.
- State of Bhopal and Ors. v. Champalal and Ors.
- The New Marine Coal Co. (Bengal) Private Ltd. v. Union of India
- State of West Bengal v. M/S. B. K. Mondal and Sons
- Karimbil Kunhikoman v. State of Kerala
- V. R. Subramanyam v. B. Thayappa and Others.