Valid Tender of money by debtor to creditor discharges the liability of debtor
Under law when a person has tendered the amount payable by him he must be deemed to have discharged his obligation and the creditor is bound to accept the tender. In the book "The Law of Tender" by G.L.B. Harris the author has remarked that "Tender is one of those radiant gems of elemental justice which gleams with augmented lustre in the polished jural systems". As between debtor and creditor it was recognised rule in equity that if the creditor refused to accept the tender of the debt, the debtor was not liable to suffer any consequence for non-performance of his part. The said principle in equity has been woven into the statutory law as could be seen from Section 38 of the Contract Act.
In Dasharathy v. Khondkar, ILR 55 Cal 624 : AIR 1928 Cal 68 it has been held that the effect of a valid tender is to stop the running of interest on the amount payable. "A valid tender on a contract of debt is as much a performance and discharge of a debtor's duty as actual payment". A Division Bench of Allahabad High Court has held in Salik Ram v. Jaigopal Singh, that if the amount due is
tendered either by the debtor or his agent, the creditor is bound to accept it and if he does not accept he is not entitled to claim interest after the date of such tender. Another division bench of Orissa High Court has held in Pyari Mohan v. Durga Sankar, that a valid tender satisfies all the requirements of performance even in case of wrongful refusal to accept the tender.
Kerala High Court
Pradeep Chandran vs Nimmi Velappan And Anr. on 13 December, 1993
Equivalent citations: 1994 (1) ALT Cri 255, 1994 CriLJ 2768
https://www.lawweb.in/2013/06/valid-tender-of-money-by-debtor-to.html
