Section 24 in M.P. Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950
24. Calculation of interest and reduction of principal in all transactions.
(1)The Claims Officer shall, notwithstanding anything contained in any other enactment for the time being in force, reopen all transactions made twelve years before the last transaction or before the last January, 1932, whichever is earlier and, as far as may be, ascertain in respect of each loan the date on which it was originally advanced. He shall, notwithstanding the provisions of any agreement or law to the contrary, calculate the interest due at six per centum per annum or such lower rate of interest as may have been agreed upon between the parties. He shall also determine the amount of principal, if any, of each loan which would have remained unpaid if the calculation of interest had been made as herein provided.(2)If the Claims Officer finds that the loan was originally advanced prior to the 1st January, 1932, then he shall reduce the principal determined under sub-section (1) by twenty per centum.(3)Notwithstanding anything contained in any law for the time being in force, no Claims Officer shall, in respect of any secured debt or claim to which this Chapter applies, award on account of arrears of interest a sum greater than the principal of the loan as determined under sub-section (1).(4)If the Claims Officer finds that nothing is due to the creditor, he shall pass an order discharging the secured debt or claim.(5)The amounts determined due shall not carry any interest after the date of determination.(6)Nothing in sub-sections (1) to (5) shall apply to excluded debts. The amount due for such debts shall be determined in accordance with the terms of the contract between the parties or any law for the time being in force.
