Nothing herein contained shall affect the right of the parties to require that any matter in difference between them be referred to arbitration.

Mode of taking accounts Mode of taking accounts.-

1. (1) When the Court enquires into the history and merits of a case under section 8, it shall, notwithstanding any agreement between the parties or the persons (if any) through whom they claim, as to allowing compound interest or otherwise determining the manner of taking the account, and notwithstanding any statement or settlement of account, or any contract purporting to close previous dealings and create a new obligation, open the account between the parties from the commencement of the transactions, and take that account according to the rules laid down in sub-section
2. (2) : Provided that, in the exercise of the powers conferred by this and the last preceding section the Court shall not re-open any agreement or contract purporting to close previous dealings and create a new obligation which has been entered into by the parties or the persons (if any) through whom they claim, or go behind and beyond a statement or settlement of account which is of a date prior to the first day of Baisakh, 1978 : Provided further that, nothing hereinbefore contained and nothing contained in section 10 shall be deemed to authorise the Court to re-open any agreement, contract or account when the account has been finally closed and settled between the parties or the aforesaid persons leaving no subsisting liabilities between them.
3. (2) The Court shall take the account under sub-section
4. (1) in accordance with the following rules, namely :-
   • (a) In the account of principal there shall be debited to the debtor such money as may from time to time have been actually received by him or on his account from the creditor as part of the transactions, but not any accumulated interest which has been converted into principal at any statement or settlement of account or by any contract made in the course of the transactions : Provided that, the Court shall allow such debit when such statement, settlement or contract is of a date prior to the first day of Baisakh, 1978.
   • (b) In the account of interest there shall be debited to the debtor monthly simple interest on the balance of the principal for the time being outstanding at the stipulated rate of interest or, in its absence, at the rate considered fair by the Court, not exceeding in either case twelve per centum per annum on such balance.
   • (c) All money paid by or on account of the debtor to the creditor or on his account, and all profits, service or other advantages of every description, received by the creditor in the course of the transactions (estimated, if necessary, at such money value, as the Court in its discretion, or with the aid of arbitrators appointed by it, may determine), shall be credited first in the account of interest, and when any payment is more than sufficient to discharge the balance of interest due at the time it is made, the residue of such payment shall be credited to the debtor in the account of principal.
   • (d) The accounts of principal and interest shall be made up to the date of instituting the suit and the aggregate of the balances (if any) appearing due on both such accounts on that date shall be deemed to be the amount due at that date; except when the balance appearing due on the interest-account exceeds one-half of that appearing due on the principal account, in which case the latter balance plus one-half thereof shall be deemed to be the amount then due. The party from whom this amount is thus found due shall be bound to repay it, whether such party is a plaintiff or a defendant in the suit, and the Court shall by its decree declare and direct accordingly.
   • (e) For the purposes of clauses
   • (a) and
   • (c) the value of the produce for which a record of prices is kept in the local Tehsil office shall be debited or credited, as the case may be, at such rates for the month during which such produce was sold, advanced, supplied or received.