5. Interest payable on debts.

(1) Notwithstanding anything contained in any law or contract or in any decree or order of court, for determining the amount of a debt (other than a debt due to a banking company) for the purpose of payment under this Act..-\n(a) interest shall be calculated at the rate applicable to the debt under the law, custom or contract or the decree or order of court under which it arises or at six per cent per annum simple interest, whichever is less, and credit shall be given for all sums paid or credited towards interest, and only such amount as is found outstanding, if any, as interest thus calculated shall be deemed payable together with the principal or such portion of it as is due:\nProvided that not more than one-half of the principal shall be deemed payable or to have been payable towards interest which accrued due till the commencement of this Act;\n(b) if the amount paid or credited towards interest exceeds the amount payable under clause (a), such excess shall be credited towards the principal and the balance, if any, and future interest alone shall be recoverable.\n(2) Notwithstanding anything contained in any law or contract or in any decree or order of court, for determining the amount due to a banking company for the purpose of payment under this Act, interest shall be calculated at the rate applicable to the debt under the law or contract or the decree or order of court under which it arises or at seven per cent per annum simple interest, whichever is less, with effect on and from the commencement of this Act, but nothing contained in this sub-section shall be deemed to require a re-appropriation of interest already paid and credited before such commencement.\n(3) Nothing contained in this section shall be deemed to require the creditor to refund any sum which has been paid to or recovered by him.