RAMNANDAN PRASAD NARAYAN SINGH vs MAHANTH KAPILDEO RAM JEE ANDANOTHER(and 3 other appeals)

The Supreme Court interpreted Section 7 of the Bihar Money-Lenders (Regulation of Transactions) Act, 1939, clarifying that when a fresh document is executed for the remaining amount due on a loan, the 'amount of loan mentioned in, or evidenced by, such document' refers to the later document, not the original. The Court held that interest can be decreed based on the later document, and the total amount decreed must not exceed the amount specified in that document. The judgment emphasized that the maximum amount decreed should not consider the original loan amount or its interest.