ISSUE:
Whether the appellants had accepted payment of Rs. 20 lacs in full satisfaction of their claim against the respondent and surrendered all the writings duly discharged and there was absolute release of the debt of the written statement?
What is the effect of the receipt executed contemporaneously with the payment of the second installment of Rs. 8,75,000 ?
RULE:
Every promisee may dispense with or remit, wholly or in part, the performance of the promise made to him, or may extend the time for such performance, or may accept instead of it any satisfaction which he thinks fit. (Section 63 of the ICA)
Reference to section 41 of the ICA was also made which stated that when a promisee accepts performance of the promise from a third person, he cannot afterwards enforce it against the promis