ECONOMICS

Detailed explanation-1: -Pre-payment of Part Payment of a Debt at the Creditor’s Request. Payment of a Lesser Sum at Another Place at the Creditors Request. A Contract with Creditors after Insolvency of the Debtor. The Parties Enter into a Deed of Release – Part Payment of a Debt.

Detailed explanation-2: -The term debt assignment refers to a transfer of debt, and all the associated rights and obligations, from a creditor to a third party. The assignment is a legal transfer to the other party, who then becomes the owner of the debt.

Detailed explanation-3: -Such an assignment is called equitable assignment. The proviso to Section 130 of the TP Act provides that dealing of debt/actionable claim by the debtor shall be valid as against the transfer between the assignor and the assignee, save where the debtor is a party to the transfer or has received express notice thereof.

Detailed explanation-4: -The word appropriation refers to ‘application or allotment’ and the word payment means giving a certain sum of money to discharge an obligation. Thus, appropriation of payments means the application of the certain amount paid by a person towards discharging of the several debts owed by the person towards the other.