Mode of taking accounts and reduction of debt or interest or both.

§18

Summary

Notwithstanding any decree referred to in sub-section (1) of section 3 of the Madhya Pradesh Act passed by a Civil Court, the Court shall determine the amount due to each of the creditors as on the date on which this Act comes into force according to the following provisions, namely :- (1)(a) Separate accounts of principal and interest shall be taken; (b) In the accounts of principal and interest, there shall be debited the amounts, if any, respectively due for principal (including costs) and interest under or in relation to the decree : Provided that, if such decree 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 shall, for purposes of this clause, be deemed to be the amount awarded on account of principal (including costs) and interest, respectively. (2) In respect of the amount due under any decree on the date on which this Act comes into force, in the account of interest, there shall be debited to the debtor simple interest on the balance of principal of the decretal amount for the time being outstanding at the rate agreed upon between the parties, or at the rate allowed under such decree or at a rate not exceeding 1[6 per cent.] per annum, whichever is the lowest. The amount found due under or in relation to such decree in respect of the principal as well as interest shall each separately be reduced by 30 per cent. The amounts so reduced shall be taken to represent the amounts due in respect of principal and interest on the date aforesaid 2[except when the balance appearing due on the interest account exceeds that appearing due on the principal account, in which case, double the latter balance shall be deemed to be the amount then due.].

Notwithstanding any decree referred to in sub-section (1) of section 3 of the Madhya Pradesh Act passed by a Civil Court, the Court shall determine the amount due to each of the creditors as on the date on which this Act comes into force according to the following provisions, namely :- (1)(a) Separate accounts of principal and interest shall be taken; (b) In the accounts of principal and interest, there shall be debited the amounts, if any, respectively due for principal (including costs) and interest under or in relation to the decree : Provided that, if such decree 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 shall, for purposes of this clause, be deemed to be the amount awarded on account of principal (including costs) and interest, respectively. (2) In respect of the amount due under any decree on the date on which this Act comes into force, in the account of interest, there shall be debited to the debtor simple interest on the balance of principal of the decretal amount for the time being outstanding at the rate agreed upon between the parties, or at the rate allowed under such decree or at a rate not exceeding 1[6 per cent.] per annum, whichever is the lowest. The amount found due under or in relation to such decree in respect of the principal as well as interest shall each separately be reduced by 30 per cent. The amounts so reduced shall be taken to represent the amounts due in respect of principal and interest on the date aforesaid 2[except when the balance appearing due on the interest account exceeds that appearing due on the principal account, in which case, double the latter balance shall be deemed to be the amount then due.].

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