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Notwithstanding any decree against the debtor or any agreement between the parties or the persons, if any, through whom they claim, as to allowing compound interest or setting off the profits of mortgaged property without an account in lieu of interest, or otherwise determining the manner of taking the account, and notwithstanding any statement or settlement of account, or any contract purporting to close previous dealings and create a new obligation, the Court shall inquire into the history and merits of the case and take account between the parties from the commencement of the transactions subsisting between the parties and the persons, if any, through whom they claim, out of which the claim has arisen and determine the amount due to each of the creditors at the date of the application made under section 24, according to the following rules, namely:- (a) Separate accounts of principal and interest shall be taken. (b) In the account of principal, there shall be debited to the debtor only such money as may, from time to time, have been actually received by him, or on his account, from the creditor, and the price of goods, if any, sold to him by the creditor. (c) In the accounts of principal and interest, there shall be debited the amounts, if any, respectively due for principal (including costs) and interest under any decree or order passed by a competent Court in respect of any debts: Provided that, if such decree or order does not specify the amount of principal and interest separately or does not contain any material for determining the same, two-thirds and one-third of the amount awarded by such decree or order shall, for the purposes of this clause, be deemed to be the amount awarded on account of principal (including costs) and interest, respectively. (d) In the accounts of interest, there shall be debited to the debtor simple interest on the balance of principal for the time being outstanding at the rate agreed upon between the parties, or at the rate allowed under any decree or order passed between the parties, or at a rate not exceeding six per cent. per annum, whichever is the lowest. (e) Credit shall be given for all sums paid by the debtor first towards outstanding interest and the balance, if any, shall be credited towards repayment of the principal. The principal and interest outstanding thus calculated shall be considered as net outstanding debts as on the date of application for the purpose of scaling down as hereinafter provided. In no case the total repayments made shall exceed twice the principal.
<span style="margin-left:15px;"></span>Notwithstanding any decree against the debtor or any agreement between the parties or the persons, if any, through whom they claim, as to allowing compound interest or setting off the profits of mortgaged property without an account in lieu of interest, or otherwise determining the manner of taking the account, and notwithstanding any statement or settlement of account, or any contract purporting to close previous dealings and create a new obligation, the Court shall inquire into the history and merits of the case and take account between the parties from the commencement of the transactions subsisting between the parties and the persons, if any, through whom they claim, out of which the claim has arisen and determine the amount due to each of the creditors at the date of the application made under section 24, according to the following rules, namely:- <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>a</i>) Separate accounts of principal and interest shall be taken. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span><i>(b)</i> In the account of principal, there shall be debited to the debtor only such money as may, from time to time, have been actually received by him, or on his account, from the creditor, and the price of goods, if any, sold to him by the creditor. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>c</i>) In the accounts of principal and interest, there shall be debited the amounts, if any, respectively due for principal (including costs) and interest under any decree or order passed by a competent Court in respect of any debts: <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>Provided that, if such decree or order does not specify the amount of principal and interest separately or does not contain any material for determining the same, two-thirds and one-third of the amount awarded by such decree or order shall, for the purposes of this clause, be deemed to be the amount awarded on account of principal (including costs) and interest, respectively. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>d</i>) In the accounts of interest, there shall be debited to the debtor simple interest on the balance of principal for the time being outstanding at the rate agreed upon between the parties, or at the rate allowed under any decree or order passed between the parties, or at a rate not exceeding six per cent. per annum, whichever is the lowest. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>e</i>) Credit shall be given for all sums paid by the debtor first towards outstanding interest and the balance, if any, shall be credited towards repayment of the principal. The principal and interest outstanding thus calculated shall be considered as net outstanding debts as on the date of application for the purpose of scaling down as hereinafter provided. In no case the total repayments made shall exceed twice the principal. <br> <br>