Section 14 in The Bhopal Debt Redemption Act, 1955
14. Accounting and determination of the amount due.
(1)In a suit to which this Act applies or in amending a decree under the provisions of Section 13, the Tribunal shall, notwithstanding anything contrary in any law, decree or contract or in any agreement purporting to close past transaction, determine the principal and take into account all sums paid by or on behalf of the debtor and in the case of a mortgage with possession the net profits realised by the mortgagee or which, with the exercise of ordinary diligence, might have been realised by him, and shall determine the amount, if any, due by the debtor in accordance with the provisions of the following sub-section :Provided that for the purpose of determining the principal, the Tribunal shall treat as principal any accumulated interest which has been converted into principal at any statement or settlement of account or by any contract in the course of the transaction made before the first day of January, 1926, but shall treat as interest any accumulated interest which has been converted as aforesaid at any such statement, settlement or contract made on or after that date.(2)The amount due by the debtor shall not exceed the amount that would have been due if the rate of interest had been in the case of a secured loan, four and a half per cent per annum simple interest and in the case of an unsecured loan, six per cent per annum simple interest:Provided that the provisions of this sub-section shall not apply to loans for seed advanced in kind according to the sawain system under which such loans are repaid in kind with the addition of 25 per cent to the quantity of seed advanced.(3)The amount due by the debtor as interest shall not exceed the amount of the principal outstanding on the date on which the amount due by the debtor is determined and all payments by a debtor over and above the interest so calculated shall be deemed as payments towards the principal.(4)Nothing in this section shall entitle the debtor to a refund of any sum already paid by him.
