Money refused releases the debtor.
When a debtor pays back the sum of money which has been borrowed by him and the party who lent the money refuses to take it, then in such case the borrower is released from the debt & the lender cannot sue him for the non-repayment money
‘A’ borrowed a sum of Rs. 10 Lakhs with interest rate 12% p.a from ‘B’. When ‘A’ went to return the borrowed money ‘B’ denied taking it. After one month ‘B’ sued ‘A’ for the non-repayment of the borrowed money, the court provided the judgment in favor of ‘A’ by stating the maxim ‘Reprobata pecunia leberat solventem’.
Indian Law Position:
Lending & Borrowing of money can be considered as a contract and hence it can be dealt by the provisions of the Indian Contract Act 1872. The Section 38 of the Indian Contract Act provides the effect of refusal to accept offer of performance, the Section states the following
“Where a promisor has made an offer of performance to the promisee, and the offer has not been accepted, the promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract.
Every such offer must fulfill the following conditions:—
(1) It must be unconditional;
(2) it must be made at a proper time and place, and under such circumstances that the person to whom it is made may have a reasonable opportunity of ascertaining that the person by whom it is made is able and willing there and then to do the whole of what he is bound by his promise to do;
(3) If the offer is an offer to deliver anything to the promisee, the promisee must have a reasonable opportunity of seeing that the thing offered is the thing which the promisor is bound by his promise to deliver.
An offer to one of several joint promisees has the same legal consequences as an offer to all of them.” 
This section of the Indian Contract Act clearly provides that in case where a promisor has made an offer of performance to the promisee, and the offer has not been accepted, the promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract. Hence, it clear from the bare reading of the act that in the case where a lender denies the repayment of the money lent then he/she cannot sue the borrower for not repaying the loan.
Edited by Vigneshwar Ramasubramania
Approved & Published – Sakshi Raje