The Calcutta Law Journal. December 1 1929

But it does not prevent an agreement between the debtor and the credtor to capitalize interest at a stage when the interest does not exceed the principal." His Lordship means to say that arrears of interest cannot exceed the principal in the course of one transaction and the capitalization of interest is only permissible before it exceeds the principal. [...] Thirdly :—Supposing for a moment that inrest bigger than the principal as well as the principal sum remai unpaid is one suit maintainable for the recovery of principal and interest equal tothat and the other at a different'time for recovering the exceeding balance of interest or is there an y bar of Oder 2 Rule a of the evil Procedure Code ?' Since the recovery of a debt by a suit is lie of the [...] But it is submitted that although a creditor's claim extends in such cases to the principal and the whole of interest whenever the latter exceeds the former also he is only entitled to make in respect of the claim a demand for the recovery of principal plus interest equal to that o:r account of the rule of Damdupat. [...] Whenever a creditor sues for the principal and the whole gi interest due although the latter has exceeded the former at the date of the suit the Court is competent on being so requested to grant two separate instalments and postpone the payment of the second instalment for a reasonable time since the bar of Dadupat to recover the exceeding interest at once is a good and sufficient reason fo [...] f)n the same principle if the exceeding interest cannot be recovered as interest on account of a technical defect in the Rule and the defendant admits his position as a debtor but contends that he is not responsible to pay the remainder of interest it can be fairly deduced that the debtor in such cases is liable to satisfy the demand of his creditor as !or possession and use of the latter's money