Section 14 in The M.P. Anusuchit Jati Tatha Anusuchit Jan Jati (Rinisahayata) Adhiniyam, 1967
14. Calculation of interest and reduction of principal in all transactions.
(1)The Debt Relief Court shall, notwithstanding anything contained in any other enactment for the time being in force, reopen all transactions made [34 years before the last transaction or before the 1st January 1964 in relation to members of Scheduled Tribes and before the 1st January 1966 in relation to members of Scheduled Castes] [Substituted by M.P. Act No. 33 of 1972.] whichever is earlier and, as far as may be, ascertained in respect of each debt the amount of principal actually paid to the debtor and the date on which it was originally advanced. It shall, notwithstanding the provisions of any agreement or law to the contrary, calculate the interest due in accordance with the rate specified in the First Schedule or such lower rate of interest as may have been agreed upon between parties. It shall also determine the amount of principal, if any, of each debt which would have remained unpaid if the calculation of interest had been made as herein provided :Provided that where any sum is payable under a labour agreement or service bond, the Debt Relief Court shall, after equitable adjustment of the remuneration of the labour rendered by the debtor from the date of the agreement or bond, determine the debt due by the debtor.Explanation. -(a)"Labour agreement" or "service bond" means an agreement in writing or otherwise where in consideration for the performance of manual labour for a continuous period of one month by any person is included and includes an advance exceeding the equivalent of one month's fair and equitable remuneration made or to be made to such person or at his request to some one else and the interest, if any, on such advance.(b)[ "fair and equitable remuneration" means such amount as the State Government may, after taking into consideration the rates of wages prevailing at the relevant time in similar employment, by notification, fix.] [Substituted by M.P. Act No. 33 of 1972.](2)Notwithstanding anything contained in any other enactment for the time being in force, no Debt Relief Court shall recognise any labour agreement or service bond entered into by a debtor after the appointed date.(3)Where the principal was borrowed in cash with an agreement to repay it in kind, the Debt Relief Court shall, notwithstanding such agreement, agree to the debtor repaying the debt in cash, after deducting the value of all payments made by the debtor in kind at the rate, if any, stipulated in such agreement, or at the market rate prevailing at the time of each payment, whichever is higher.(4)[ If the Debt Relief Court finds that the loan was originally advanced to a member of Scheduled Tribe prior to 1st January, 1964 or to a member of Scheduled Caste prior to the 1st January, 1966 then it shall reduce the principal determined under sub-section (1) in accordance with Part A of the Second Schedule in respect of loans advanced to a member of Scheduled Tribe and in accordance with Part B of the said Schedule in respect of loans advanced to a member of Scheduled Caste.] [Substituted by M.P. Act No. 33 of 1972.](5)Notwithstanding anything contained in any law for the time being in force, no Debt Relief Court shall, in respect of any debt to which this Act applies, award on account of arrears of interest a sum greater than the principal of the loan as determined under sub-section (1).(6)If the Debt Relief Court finds that nothing is due to the creditor, it shall pass an order discharging the debt with costs.(7)If the Debt Relief Court finds that the creditor has been paid in excess of the amount due to him by the debtor, it shall pass necessary order directing the creditor to refund the excess amount to the debtor in such manner as it may determine.(8)If in the case of a secured loan, the Court is satisfied that the loan advanced on a pawned article has been paid in full and nothing is due to the creditor, it shall [pass an appropriate order under sub-section (8-A)] [Substituted by M.P. Act No. 23 of 1984.].[(8-A) The Court in all cases of secured loan under this section shall where it finds that nothing is due to the creditor, order him to redeliver possession of immovable property, or, as the case may be, to return movable property pawned or pledged, and if for any reason the security is lost, or deteriorates or is destroyed, to pay to the debtor such money value as he may be entitled therefore, and the said Court shall, without prejudice to exercise of any power under Section 11, be entitled to pass such other incidental orders, including an order for payment of mesne profits, reasonable interest and costs, as it may having regard to the circumstances of the case, deem fit] [Inserted by M.P. Act No. 23 of 1934.].(9)Nothing in this section shall be construed as empowering a Debt Relief Court to re-open any debt in respect of which a scheme of repayment has already been prepared by such a Court under the Regulations before the appointed date.
