Section 10 in Rajasthan Relief of Agricultural Indebtedness Act, 1957
10. Determination of debts.
(1) Notwithstanding anything contained in any enactment for the time being in force or in any agreement between the parties or the persons through whom they claim, as to allowing compound interest or treating without' an account the profits of mortgaged property to be interest on the mortgage money or specifying the mode of otherwise setting accounts, and notwithstanding any writing, statement or settlement of accounts or any agreement purporting to close previous dealings and create a new obligation, the Debt Relief Court shall:(i)re-open all transactions carried on during [fifteen years] [Substituted and Inserted and shall be deemed to have been Substituted and Inserted w.e.f. 13.10.1961 vide section 8 Rajasthan Act No. 9 of 1962 (Published in Rajasthan Gazette, Part IV-A, Ex-Ord., dated 23.1962] immediately proceeding the last transaction or the first day of January, 1952, whichever is earlier,(ii)ascertain the amount and date of each loan originally advanced, and(iii)draw up an account, which, in case there are more creditors than one, shall be prepared separately for each of them in the manner laid down hereunder, namely:(a)separate accounts of interest and principal shall be taken upto the date of the application filed under section 6 [or under sub-section (1) of section 6A, as the case may be.] [Substituted and Inserted and shall be deemed to have been Substituted and Inserted w.e.f. 13.10.1961 vide section 8 Rajasthan Act No. 9 of 1962 (Published in Rajasthan Gazette, Part IV-A, Ex-Ord., dated 23.1962](b)in the account of principal moneys advanced, there shall be debited to the debtor such moneys, as may from time to time have been actually received by him or on his account from each creditor and the price of goods, if any, sold to the debtor, by such creditor, as part of the transaction :Provided that there shall not be so debited to the debtor:(i)any sum in excess of the amount due or to accure due under a decree which the debtor may have agreed directly or indirectly to pay in pursuance of any agreement relating to the satisfaction of such decree, or(ii)any accumulated interest which has been converted into principal in any statement or settlement of accounts or by any contract made in the course of the transactions.(c)in the account of interest, there shall be debited to the debtor simple interest on the balance of the principal moneys for the time being outstanding at the rate stipulated by the parties or, if the debt is payable under the decree or order of the Civil Court, at the rate provided for in such decree or order or at the rate of six percent per annum in the case of secured loans and nine per cent per annum in the case of unsecured loans, whichever is the lowest,.(d)all moneys paid by or on account of the debtor to the creditor or on his account and of profits, services or other advantages of every description received by the creditor in the course of the transaction estimated, if necessary, at such money value as the Debt Relief Court in its discretion or with the aid of valuers appointed by it may determine, shall be credited first in the account of interest and, if any such payment or the money equivalent of any such profits, services or other advantages, exceeds the balance of interest due at the time it is made, the residue thereof shall be credited to the debtor in the account of principal moneys:(e)if the aggregate of the amounts so credited in the account of interest is equal to the total amount of the principal, no further interest thereon shall be deemed to be due;(f)If such aggregate is less than the total amount of the principal, further interest, if due in accordance with the provisions of clause (c), may be allowed to the maximum limit of the difference between such aggregate and the total amount of the principal:(g)the Debt Relief Court shall, in the manner laid down in this sub-section and subject to the provisions of the succeeding sub-sections, determine and declare separately the amounts outstanding against the debtor as principal and interest.(2)A Debt Relief Court shall reduce by forty percent, the principal amount of the loans advanced prior to the 1st of January, [1945] [Substituted and Inserted and shall be deemed to have been Substitued and Inserted w.e.f. 13.10.1961 vide section 8 Rajasthan Act No. 9 of 1962 (Published in Rajasthan Gazette, Part IV-A, Ex-Ord. dated 23.4.1962.] as found in accordance with the provisions of sub-section (1) to be due on the date of the application filed under section 6 [or under sub-section (1) of section 6A, as the case may be.](3)Notwithstanding anything contained in this Act or in any other law for the time being in force, no Debt Relief Court shall award on account of arrears of interest a sum exceeding the total amount of principal found due in accordance with the foregoing provision of the this section.(4)If a Debt Relief Court finds that nothing is due to the creditor it shall pass an order discharging the debt.(5)If the aggregate of the amounts credited in the account of interest in the manner laid down in sub-section (1) is less than the total amount of the principal, the difference between the total amount so credited and the total amount of the principal or the balance outstanding in the account of interest, whichever is less, shall be allowed as interest.(6)Nothing contained in this Act shall be deemed to require the creditor to refund any some which has been paid to him or to increase the liability of the debtor to pay any amount in excess of that which would have been payable by him, if this Act had not been passed.(7)In the case of any transaction carried on between a debtor and a creditor in kind in the form of grain or goods for the purpose of manure or seed or any other purpose, the account of such transactions shall be prepared in terms of the money equivalent of such grain or goods calculated at the market price thereof prevailing at the time of the transaction.
