Repayment of Deposit on Maturity

Repayment Must Be Exact and On Time

Chapter 5 already established that repayment of a deposit must happen strictly on the date, and for the amount, stated in the Deposit Receipt — a company has no general right to delay repayment beyond the maturity date without the depositor's consent, and a genuine default exposes both the company and every officer knowingly in default to the consequences the Companies Act, 2013 provides under Sections 73 and 74, including recourse by the depositor to the National Company Law Tribunal. Where a depositor has already indicated, in reply to the renewal letter, that repayment (not renewal) is wanted, the Secretary's task is simply to see that the exact amount reaches the depositor by the maturity date, and to close the deposit correctly in the company's own records.

What the Repayment Letter Must Do

A repayment letter should state the Deposit Receipt number, the principal amount, any interest still due up to the date of repayment, and the total amount being remitted, and should ask the depositor to return the original Deposit Receipt, duly discharged, in acknowledgement — the receipt cannot simply be treated as cancelled on the company's own say-so; it must be returned, endorsed by the depositor, and filed as proof that the debt has genuinely been repaid and accepted as repaid.

Specimen Letter — Repayment of Deposit on Maturity

SAHYADRI ENGINEERING WORKS LIMITED

Registered Office: Shivaji Udyog Nagar, Kolhapur – 416008

CIN: U28900MH2012PLC145678

Date: 10th July

To,

Mrs. Kavita Joshi,

27, Rajarampuri,

Kolhapur – 416008

Dear Madam,

Sub: Repayment of your Fixed Deposit Receipt No. FD/2025/0088, maturing on 11th July

As instructed in your letter dated 20th June, we are arranging repayment, rather than renewal, of your Fixed Deposit Receipt No. FD/2025/0088. We enclose our cheque No. 118902, drawn on State Bank of India, Kolhapur Industrial Estate Branch, for Rs. 50,900, being the principal amount of Rs. 50,000 together with interest of Rs. 900 for the period since your last interest payment up to 11th July, the date of maturity.

Kindly acknowledge receipt of this cheque, and return the original Deposit Receipt No. FD/2025/0088, duly discharged on the reverse, at your earliest convenience, to enable us to close this deposit in our records.

We thank you for the confidence you have placed in the Company over the period of this deposit, and we would be glad to be of service again in the future.

Yours faithfully,

For Sahyadri Engineering Works Limited

(Prasad Joshi)

Company Secretary

Encl: Cheque No. 118902 for Rs. 50,900 …