Amendment status not verified — confirm the current text below against the official source.
Accounting and determination of the amount due.- (1) In a suit to which this Act applies or in an application made in a suit to which this Act applies or in amending a decree under the provisions of section 7, the court shall, notwithstanding anything to the contrary in any law, decree or contractor 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 realised by the mortgagee or which with the exercise of ordinary deligence might have been realised by him and shall determine the amount, if any, due by the debtor in accordance with the provisions of sub-sections (2) and (3); Provided that for the purpose of determining the principal, the court shall treat as principal any accumulated interest which has been converted in to principal at any statement, settlement of account or any contract in the course of transaction made before the first day of January, 1917 but shall treat as interest any accumulated interest which has been converted as aforesaid at any such statement, settlement, or contract made on or after that date. (2) The amount due by the debtor shall not exceed the amount that could have been due if the rate of interest had been, in the case of a secured loan 6 per cent per annum simple interest, and in the case of unsecured loan 12 per cent per annum simple interest. (3) The total amount due by the debtor as interest and principal shall not in any case, exceed- (a) in respect of a loan advanced before the commencement of this Act, twice the amount of the principal less any amount already received by the creditor in excess of the amount due under sub-section (2); (b) in respect of loan advanced after the commencement of this Act, twice the amount of principal less any amount already received by the creditor. (4) Nothing in this section shall entitle the debtor to a refund of any sum already paid by him.