Proceedings of the Legislative Council of the United Provinces. Monday 26th November 1934. Official Report

The Hon'ble the Home Member : The answer to the first part of the question is in the affirmative; the second part does not arise. [...] As the clause emerged from the select committee the method to be observed by the special judge was firstly the application of certain scheduled percentage rates to the interest accumulated as at 31st December.1929 coupled with the application of the principle of damdupat if after the application of such Percentage the interest was still greater than the principal; and secondly the application [...] The immediate effect of this slump was a decrease in the incomes of the landlords and a fall in the value of their property; and this of course enhanced the difficulty of repaying the existing debt and led to the contraction of fresh debts. [...] The first is that the less the interest the debtor has paid during the currency of the debt the quicker comes the time when the interest has doubled the principal and no further interest becomes due. [...] As my amenment now stands it lays down that as at 31st December 19)6 the interest due will be added to the principal and for the purpose of the application of the law of damdupat the total of both will be regarded as the principal.