BHRIGUNANDAN PRASAD AND ORS. vs THE APPELLATE OFFICER & ORS.

The Supreme Court interpreted Section 9(1) of the Evacuee Interest (Separation) Act, 1951, determining that while it mandates a maximum interest rate of five percent per annum simple on the principal amount for liabilities due, it does not authorize the reopening of accounts to adjust excess interest received against the principal. The Court held that the five percent limit applies only to amounts due after the Act's enforcement and not retrospectively to amounts already settled under the original mortgage terms. The appeal was allowed with directions accordingly.