Section 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 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. (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 p