M.P Civil Jugde Pre Exam 1998
  1. Where a Bhumiswami effects a mortgage the total amount of interest under Section 165(3) of M.P.L.R. Code shall not exceed?
Verified Answer

Core Legal Answer & Context: Section 165(3) of the M.P. Land Revenue Code, 1959, incorporates a significant protective measure for Bhumiswamis who mortgage their land. This provision caps the total amount of interest that can be recovered on such a mortgage. The intent is to prevent the accumulation of excessive interest, which could lead to perpetual indebtedness and loss of land. This principle is akin to the 'Damdupat' rule prevalent in Indian debt laws.

Relevant Statutes and Sections: M.P. Land Revenue Code, 1959, Section 165(3) (Cap on interest in mortgages).

Important Landmark Cases: The principle of Damdupat, which limits interest to the principal amount, is a well-established concept in Indian jurisprudence, though not tied to a specific landmark case for this particular section.

Clear Conclusion: The total amount of interest shall not exceed the principal amount.