Amendment status not verified — confirm the current text below against the official source.
Interest payable on debts.—(1) Notwithstanding anything contained in any law or contract or in any decree or order of any court or tribunal, for determining the amount due from an agriculturist for the purpose of payment under this Act, interest shall be calculated at the rate applicable to the debt under the law or contract or the decree or order of the Court or tribunal under which it arises or at the rate fixed by the Reserve Bank of India for similar debt or loan, whichever is less, with effect on and from the commencement of this Act, but nothing contained in this sub-section shall be deemed to require a re-appropriation of interest already paid and credited before such commencement: Provided that no interest shall accrue during the period mentioned in sub-section (1) of section 3 in respect of a debt due to a co-operative society or to the Government at the commencement of this Act, from an agriculturist entitled the benefits of sub-section (1) of Section 3: Provided further that no interest shall accrue during the period mentioned in sub- section (1) of section 3 to an agriculturist who discharged his debt in lesser number of monthly instalments than that is mentioned in sub-section (2) of Section 4: Provided also that no penal interest shall be levied if the Agriculturist pays the debt within the period mentioned in Section 4. (2) Nothing contained in this section shall be deemed to require the creditor to refund any sum, which has been paid to or recovered by him. (3) The Government shall reimburse as prescribed to the Co-operative Society concerned an amount equal to the amount of interest suffered by the Co-operative Societies under the provisos to sub-section (1), in respect of a debt.