Chapter 1: Q5E (page 2)
The simple exception handler always jumps back to the instruction following the exception. This works fine unless the instruction that causes the exception is in the delay slot of a branch. In that case, the next instruction is the target of the branch. Write a better handler that uses the EPC register to determine which instruction should be executed after the exception.
Short Answer
If there is any exception occurred, then this exception handler returns the instructions and not re-execute the debug instructions, if the same exception is occurring again.