M/S.Godavari Plywood Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Godavari Plywood Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. KBS and Associates, Chartered Accountants, whose report was submitted on January 22, 2026. Furthermore, the Official Liquidator requested permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of the company's assets. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959.

Held

The Court allowed the Company Application. Regarding the first issue, the Court ordered that the half-yearly accounts of M/s. Godavari Plywood Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, submitted by M/s. KBS & Associates, Chartered Accountants, be taken on record. Concerning the second issue, the Court accorded permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. For the third issue, permission was granted to the Official Liquidator to make the said payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court found the reasons stated in the accompanying affidavit to be sufficient and considered the filed accounts.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026. 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 Official Liquidator should be permitted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and the auditors' report, seeking their formal acceptance by the Court. The Official Liquidator also sought permission to disburse the audit fee and cover the application costs, outlining the financial arrangements for these payments. The Official Liquidator relied on the provisions of the Companies Act, 1956, and the Companies (Court) Rules, 1959, to support the application. Arguments for the Revenue/State: The judgment does not record any specific arguments made by the Revenue or State in opposition to this application.