Section 11 in The U.P. Debt Redemption Rules, 1941
11. Determination of period of mortgage and the area to be mortgaged.
(1)The tables given in Appendix A show the amount which can be repaid in any period from one to twenty years by annual payment of Rs. 100 allowing for interest at 3 per cent per annum, which is the rate of interest prescribed in sub-section (3) of section 10 of the Act. The Collector shall calculate from these tables the amount which can be repaid in the maximum period of twenty years from the net profits of the judgement-debtor's protected land.Example. - If the net annual profits of the judgement-debtor's protected land are Rs. 200, a reference to the tables in Appendix A shows that in twenty years a sum of Rs. 1,487.74 (say Rs. 1,488) can be repaid by annual payments of Rs. 100. Therefore, in twenty years a sum of Rs. 2,976 can be repaid to the decree-holder from the profits of the judgement-debtor's protected land (Rs. 200).(2)If the amount which can thus be repaid in twenty years is less than or equal to the amount of the decree, the Collector shall grant the mortgage for the full period of twenty years.(3)If the amount so determined is greater than the amount due under the decree, the Collector shall determine what portion of the judgement-debtor's protected land should be mortgaged and for what term of years.Example. - If in the example given in sub-rule (1) the amount due under the decree, is Rs. 1,000 then the decretal amount can be repaid by a mortgage for the full term of twenty years of a portion of the judgement-debtor's protected land represented by the fraction 1,000/2,976.A reference to the table in Appendix A shows that a sum of Rs. 916 can be repaid by annual payments of Rs. 200 in five years, and a sum of Rs. 1,084 in six years. Thus the decretal amount can also be repaid by the grant of a mortgage of the whole of the judgement-debtor's protected land for a term of five or six years, the difference being adjusted by a cash payment(4)In deciding the period of the mortgage and the area of the judgement-debtor's protected land to be mortgaged, the Collector shall consult the wishes of the parties and in particular the wishes of the judgement-debtor, and shall consider how their interest would be best served.
