14. (1) The Special Judge shall, by an order in writing, fix a date for inquiring into [ the claims] made in ‘pursuance of the notice published in accordance with [ section 9] and give notice of such date [ to all the claimants] and the person who made the application under section 4.
(2) The Special Judge shall examine each claim and after hearing such parties as desired to be heard and considering the evidence, if any, produced by them shall determine the amount, if any, due from the landlord to the claimant on the date of the application under section 4.
(3) All evidence recorded in any suit or proceeding which is stayed under sub-section (1) of [section 7]may be taken by the Special Judge as evidence recorded before himself.
(4) In examining each claim the Special Judge shall have and exercise all the powers of the court in which a suit for the recovery of the money due would lie and shall decide the questions in issue on the same principles as those on which such court would decide them, subject to the following provisions, namely—
(a) the amount of interest held to be due on the date of the application shall not exceed that portion of the principal which may still be found to be due on the date of the application :
(b) the provisions of the Usurious Loans Act, 1918, will be applicable to proceedings under this Act :
(c) the provisions of the United Provinces Agriculturists’ Relief Act, 1934, shall not be applicable to proceedings under this Act.
(5) For the purpose of ascertaining the principal under clause (a) of sub-section (4) the Special Judge shall treat as principal any accumulated interest which has been converted into principal at any statement or settlement of account or by any contract made in the course of the transaction [ on or before December 31, 1916].
[Explanation— Interest which on or before December 31, 1916, become part of the principal under the express terms of original contract shall, for the purposes of this section, be deemed to be principal.]
(6) For the purpose of ascertaining the principal under clause (a) of sub-section (4) the Special Judge shall not treat as principal any accumulated interest which has been converted into principal at any statement or settlement of accounts or by any contract made in the course of the transactions after December 31. 1916. (7) If the Special Judge finds that—
(a) no amount is due, he may pass a decree for costs in favour of the landlord ;
(b) an amount is due to the claimant he shall —
(i) pass a simple money decree, having regard also to the provisions of sections 3 of the U. P. Zamindar’s Debt Reduction Act, 1952, for such amount together with any costs which he may allow in respect of the proceedings in his court and of proceedings in any court stayed under the provisions of this Act together with pendentelite and further interest at a rate not higher than 4¼ per cent per annum ; and
(ii) also certify the amount, if any, of such decree which, in accordance with the provisions of section 8 of the U. P. Zamindar’s Debt Reduction Act, 1952, is not legally recoverable otherwise than out of the compensation and rehabilitation grant payable to the landlord :
[ Provided that no pendentelite interest shall be allowed in the case of any debt where the creditor was in possession of any portion of the debtor’s property in lieu of interest payable on such debt for the period he was so in possession.
(8) Every decree passed under sub-section (7) shall be deemed to be a decree of a court of competent jurisdiction but shall not be executable within U. P. except under the provisions of this Act.]