(1) In making settlement of debts by the Tribunal, no creditor shall be allowed a greater amount in satisfaction of both the principal and interest of a debt than twice the amount of the principal and accordingly--
(i) if, in the course of the proceedings before the Tribunal it is found that any of the creditors has received from his debtor twice or more than twice the amount of the principal in cash or in kind, the Tribunal shall pass orders that the debt shall be deemed to have been fully discharged and shall declare that the debtor shall from the date of the order, be in lawful possession of the property secured for the debt that is deemed to have been discharged ;
(ii) If, in the course of such proceedings, it is found that with respect to any debt, the amount received in cash or in kind by the Tribunal shall pass orders that only such amount as together with the amount already so received, will be equal to twice the amount of the principal, shall be repayable with respect to such debt.
Illustration.
(1) A has borrowed a sum of Rs.100/- which with interest has accumulated to Rs.150/-. If A has repaid Rs. 120/- he is liable to repay only Rs. 30/-.
(2) A has borrowed a sum of Rs. 100/- which with interest has accumulated to Rs. 250/- and accordingly ;
(a) If A has repaid Rs. 200/- or more his debt stands redeemed,
(b) If A has repaid Rs.160/- he is liable to repay only Rs. 40/- for redemption.
Maximum amount allowable in settlement of a debt and powers of Tribunal in respect thereof.
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(2) No creditor shall be allowed a higher rate of interest than the agreed rate of interest or the rate of interest as may be fixed by the State Government under section 25 of the Bombay Money Lenders Act, 1946, as extended to the State of Tripura, whichever is less.