A Public Limited Company insists its employees to furnish a sum of Rs. 100000 as security deposit (refundable after 5 years of service) for performance of their employment agreement. The said amount was deposit by company in the manner as provided in section 417 of companies Act 1956, and also earned interest thereon.
Question: -
1) Now, whether the amount of said security deposit, on maturity, needs to be returned to employees with interest?
2) What is the effect, if comany has taken undertaking from the employees that interest will not be returned? In this case, whether company can retain the intetrest earned by it on deposit of said secrutiy deposit under section 417 of Companies Act 1956?

