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Question

Answer in 150 words. Support your answer with relevant legal provisions and judicial pronouncements:
"Law as well as justice should try to prevent unjust enrichment." Elucidate the statement in reference to relevant provisions of the Indian Contract Act, 1872.

This question was previously asked in
UPSC CSE 2025 (Prelims) CSAT Official Paper (25-May-2025)

The statement “Law as well as justice should try to prevent unjust enrichment” reflects a central equitable principle: no one should unfairly benefit at another’s expense without lawful justification. This principle is codified in the Indian Contract Act, 1872, under quasi-contractual obligations (Sections 68–72). These provisions impose duties even in the absence of formal agreements, ensuring fairness.

  • Section 68: A supplier of necessaries to a minor or lunatic can recover costs from their property.
  • Section 69: A person paying money another is bound to pay, in which they are interested, is entitled to reimbursement.
  • Section 70: Where a lawful, non-gratuitous act benefits another, compensation is owed.
  • Section 72: Money paid under mistake or coercion must be repaid.

Judicial recognition, such as in Mahabir Prasad Rungta v. Durga Datta (1961), confirms these provisions as safeguards against unjust enrichment, aligning law with justice.

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