Section 20(2) in The Orissa Estates Abolition Act, 1951
(2)In determining the principal amount and interest under Sub-section (1), the Claims Officer shall, notwithstanding the provisions of any agreement or law to the contrary, proceed in the following manner:(a)he shall ascertain the amount of the principal originally advanced in each case, irrespective of the closing Of accounts, execution of fresh bonds or decree or order of a Court :(b)he shall ascertain the amount of the interest already paid or realised and shall set off towards the amount of the principal any amount paid or realised as simple interest in excess of six per centum per annum or the stipulated rate of interest whichever is lower;(c)he shall separately specify the amount of the Principal and the amount of the interest, if any, due to the creditor, such interest being calculated at the rate mentioned in Clause (b) and being limited to the amount of the principal originally advanced;(d)if he finds that in any case the creditor has received or realised by way of interest an amount equal to or more than the amount of the principal, he shall not allow any further interest to run on such principal;Explanation - In the case of usufructuary mortgage, or a lease executed in lieu of an advance made of an estate or in the case of possession of such estate or part thereof by widow in lieu of her dower debt, the net amount of rents and profits accuring from such estate shall be deemed to be the interest for the purposes of this section.(e)in other cases, the amount of the principal ascertained to be due to the claimant shall carry interest at such rate not exceeding six per centum per annum as may be prescribed by the State Government;(f)No future interest shall run on any interest ascertained to be due to a creditor.
