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Ruling: While the main clause on the liens of pl2 and pl3 do not mention the interest, the clause on the timing of exercising the lien refers to "the loan and/or the interest." Therefore, pls all have rights to the lien for their interest.
The question is whether they have rights to interest at all when there were no profits. According to the terms of the heter iska, while half of the funds given were a loan and half were an investment, in theory it would not even be necessary to pay all of the principal when the investment lost money. However, according to the terms of the heter iska, two witnesses must testify that money was lost. Regarding the denial of profits, the "borrower" needs to take a formal oath (which, as a rule, is not administered in our times). While the court-appointed trustee confirmed that there was loss on all of the properties that def bought in the relevant time period, it is unclear if the trustee’s findings are equivalent to witnesses of fact, because it is possible to deceive a trustee.
More importantly, many heter iskas, including the one used here, relate the money lent to any profitable interest of the borrower at the time. Therefore, even if the main investment for which the people had in mind was not profitable, we must consider the possibility that there were gains in other of def’s holdings. Therefore, the d’mei hitpashrut (amount set to approximate the profits made) are still a valid standard assumption in the face of inability to fully determine how much is due. Furthermore, there are opinions that debts can be updated according to the inflation rate, even without a heter iska. Based on compromise, beit din gave pls rights to 35% of the inflation rate from the time the debt was due. This comes to, cumulatively, 103,016 NIS (most but not all of the money in escrow).
P'ninat Mishpat (829)
Beit Din Eretz Hemda - Gazit
767 - P'ninat Mishpat: Used Car with a Faulty Motor
768 - P'ninat Mishpat: How Far Does a Lien Go?
769 - P'ninat Mishpat: Did the Real Estate Agent Remain Relevant?
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Beit Din Eretz Hemda - Gazit

P'ninat Mishpat Limits of Interest Rate for Loan with Heter Iska – part I
based on ruling 80033 of the Eretz Hemdah-Gazit Rabbinical Courts

Igrot Hare’aya Trying to Arrange Purchase of Land in Eretz Yisrael
#222 Date and Place: 2 Elul 5669 (1909), Rechovot

P'ninat Mishpat Limits of Interest Rate for Loan with Heter Iska – part II
based on ruling 80033 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: A Contractor’s Leaving the Job in the Middle – part III
based on ruling 84013 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: Dividing Parents’ Resources when Mother Still Alive
based on ruling 82017 of the Eretz Hemdah-Gazit Rabbinical Courts
Lessons
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Kuzari -Rabbi Ari Shvat Kuzari class 9 - "Seeing is Believing" (parag. 21-30)
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