ABC Ltd. has accepted deposits from the public for three years with interest payable at 8% p.a annually or at the end of three years at 9% p.a. One depositor "D" has requested the company for repayment of deposit after o

As per Rule 15 of the Companies (Acceptance of Deposits) Rules, 2014, when a company makes a repayment of deposits, on the request of the depositor, after the expiry of a period of 6 months from the date of such deposit but before the expiry of the period for which such deposit was accepted, the rate of interest payable on such deposit shall be reduced by 1% from the rate which the company would have paid had the deposit been accepted for the period for which such deposit had actually run and the company shall not pay interest at any rate higher than the rate so reduced. However, this rule shall not apply to the repayment of any deposit before the expiry of the period for which such deposit was accepted by the company, if such repayment is made solely for the purpose of- complying with the provisions of Rule 3 of the Companies (Acceptance of Deposits) Rules, 2014; or providing war risk or other related benefits to the personnel of the naval, military or air forces or to their families, on an application made by the associations or societies formed by such personnel, during the period of emergency declared under article 352 of the Constitution. In view of the above provision, D can get repayment of deposit after one year of deposit with reduction of 1% i.e., 7% per annum from ABC Ltd.