Section 27 in The M.P. Ceiling On Agricultural Holdings Act, 1960
27. Calculation of interest and reduction of principal in all transactions.
(1)The competent authority shall, notwithstanding anything contained in any other enactment for the time being in force, re-open all transactions made twelve years before the last transaction or before the 1st January, 1940, whichever is earlier, and as far as may be, ascertain in respect of each loan 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 at six per centum per annum 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 loan which would have remained unpaid if the calculation of interest had been made as herein provided.(2)If the competent authority finds that the loan was originally advanced prior to the 1st January, 1940, then it 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 competent authority 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 competent authority finds that nothing is due to the creditor, it 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.
