Section 13 in The Orissa (Scheduled Areas) Debt Relief Regulation, 1967
13. Calculation of interest and reduction of principal in all transactions.
(1)The Debt Relief Court shall, notwithstanding anything contained in any other law for the time being in force re-open all transactions made 20 years before the last transaction or before the 1st January, 1962, whichever is earlier and, as far as may be, ascertain in respect of each debt 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 the 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 it is found that the debtor has paid any amount in excess of the amount which would have been due to the creditor in accordance with the calculation of principal and interest in the aforesaid manners, the Debt Relief Court shall determine such excess amount and pass an order directing the creditor to pay to the debtor the excess amount so determined within such period as he may specify in the order; and any amount remaining unpaid by the expiry of such period shall be recoverable from the creditor as if a decree had been passed by a Civil Court ;Provided further 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 wherein performance or manual labour for a continuous period of one month by a person is included as a consideration for the advance 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 someone else and the interest, if any, on such advance.(b)"Fair and equitable remuneration" means such amount as the State Government may from time to time, by notification, fix or where the amount has not been so fixed, twenty rupees a month where the labourer is not fed by the employer or ten rupee a month where the labourer is fed by the employer.(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 such 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 prior to the 1st January, 1962, then it shall reduce the principal determined under Sub-section (1) in accordance with the Second Schedule.(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 Regulation applies, award of account of arrears of interest a sum greater than the principal of the loan as determined under Sub-section (1).(6)Where any debtor has paid to any credit twice the amount of principal whether by way of principal or interest or both, such debt including the principal shall be deemed to have been wholly discharged.(7)If the Debt Relief Court finds that nothing is due to the creditor, it shall pass an order discharging the debt with costs.
