(1) Where -

(a) there exists a number of debts, and

(b) the person liable therefor (in this section referred to as the debtor) makes any payment, whether on account or generally, to the person to whom he is liable (in this section referred to as the creditor), and

(c) neither the debtor nor the creditor appropriates the sum paid to any particular debt or debts,

the following provisions shall have effect: -

(i) if some of or all the debts are not statute-barred debts, the payment shall, for the purposes of this Chapter, unless the circumstances in which it was made indicate otherwise, be deemed to be appropriated pari passu in respect of each of the debts which are not statute-barred debts;

(ii) if all the debts are statute-barred debts, the payment shall, for the purposes of this Chapter, unless the circumstances in which it was made indicate otherwise, be deemed to be appropriated pari passu in respect of each of the debts.