Section 9(1) in The U.P. Debt Redemption Act, 1940
(1)In a suit to which this Act applies or in amending a decree under the provisions of section 8, the ; court shall, notwithstanding anything to the contrary in any law, decree or contract or in any agreement purporting to close past transactions, 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 realized by the mortgagee or which with the exercise of ordinary diligence might have been realized by him, and shall determine the amount, if any due by the debtor in accordance with the provisions of the following sub-sections : Provided that for the purpose of determining the principal, the court 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 before the first day of January, 1917, but shall treat as interest any accumulated interest which has been converted as aforesaid any such statement, settlement or contract made on or after that date.
