M/S.Sri Raja Rajeshwara Finance And Investment Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought to take on record the half-yearly accounts of M/s Sri Raja Rajeshwara Finance and Investment Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 27, 2026. The Official Liquidator also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Padmanabha Rao & Co., Chartered Accountants, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement.

Held

The Court held that the half-yearly accounts of the subject company in liquidation for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 27, 2026, should be taken on record. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, the Court permitted the Official Liquidator to make the said payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund account if no funds were available in the company's account, subject to reimbursement from the funds of the company upon realization of its assets. The Court found no impediment to granting these reliefs based on the affidavit and the nature of the application.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 27, 2026, should be taken on record? 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors? 3. Whether the costs of the application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement? The petitioner, the Official Liquidator, argued for the acceptance of the accounts and reports, and for permission to make the payments as sought, citing the necessity of these actions in the winding-up process. The revenue or State did not file any specific arguments as this was an application by the Official Liquidator for procedural approvals.