Damdupat

Hello sir, greetings of the day.
The following is the list of statues which contain the provisions of Damdupat.
The rule of damdupat is a branch of Hindu law of debts. According to this rule, the amount of interest recoverable, at any one time cannot exceed the principal. Where a suit has been instituted to recover a loan, the rule of damdupat ceases to operate. The result is that though the Court is bound to apply the rule of damdupat up to the date of the suit, it is free to award interest to the creditor at such rate, as it thinks proper from the date of the suit, up to the date of decree or payment upon the total amount that may be found due to the plaintiff after applying that rule. The rule of damdupat does not apply to interest recoverable in execution of a decree. The reason is that the rule ceases to operate after the suit. The principle of this section applies not only to a suit brought by a creditor, but also to a suit for redemption brought by a mortgager.
The rule of damdupat now finds a statutory recognition in the Karnataka Money Lenders Act, 1961. Section 26 of the said Act provides that notwithstanding anything contained in any agreement or any law for the time being in force, no Court shall in respect of any loan whether advanced before or after the date on which the Act comes into force decree, on account of interest, a sum greater than the principal of the loan due on the date of the decree. Thus, this rule of Hindu Law has been incorporated in the said Act in respect of the loans advanced by money-lenders/
The Damdupat law is found in these two provisions. You can also refer to the following cases for your better understanding on Damdupat law.
Smt. Maina Devi, v. Ms. Punam Umesh Naik, Manager, 2021
Union Of India (S) v. Association Of Unified Telecom Service Providers Of India Etc. (S)., 2019
M/S.GENERAL CONSTRUCTION v. SOUTH INDIAN BANK LTD, 2016
M/S. Bawa Enterprises And Others v. G.R. Shet And Another, 2015
Hope this solves your query.
Regards
Nirali Nayak
Law Student