ABC Private Limited has taken a loan from a former director (Ms XYZ) who exited the company and now only holds a token 10 shares. She had given a loan of Rs 3 lakhs on March 1, 2012 (when she was a director). The notarised loan agreement, which has been signed by both parties on January 1, 2013, has these two conditions-
"Interest: ABC Pvt Ltd shall pay to Ms XYZ interest on the principal amount of the Rupee Loan outstanding from time to time half-yearly on July 1 and January 1 in each year at the rate of 15% per annum from the date of this agreement"
"No additional payments of any kind whatsoever are due from ABC Pvt Ltd to Ms XYZ, including for any services that she provided to The Borrower in her capacity as a Director"
Now Ms XYZ is claiming that the interest is due starting from February 1, 2012 whereas ABC Pvt Ltd is of the opinion that the interest is due starting from January 1,2013 as that was the date of agreement. Can Ms XYZ claim interest from a previous date under any condition? The loan was interest free when it was given by the directors initially.
I think that ABC private limited is correct and that Ms XYZ cannot claim a higher interest but would like to get your opinions.
FYI, this is a hypothetical query which was posted earlier in "Ask experts" section but moved to Discussions on their request.