M/S.Kohinoor Cements Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application (No. 35 of 2026) in Referred Company Case No. 1 of 2002. The application, filed under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959, sought to take on record the half-yearly accounts of M/s. Kohinoor Cements Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. It also requested permission to pay an audit fee of Rs. 500 plus GST to the independent auditors, M/s. KBS and Associates, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and heard by the High Court.

Held

The Court held in favour of the Official Liquidator on all points. Firstly, the half-yearly accounts of M/s. Kohinoor Cements Limited for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, submitted on January 22, 2026, were taken on record. Secondly, permission was granted to the Official Liquidator to pay the audit fee of Rs. 500 plus GST to the auditors. Thirdly, the Court permitted the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if the company's account was insufficient, with the condition that these amounts would be reimbursed from the company's funds upon realization of its assets. The Court found the reasons stated in the affidavit to be sufficient and considered the half-yearly accounts filed by the Official Liquidator.

Key Issues

1. Whether 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, submitted on January 22, 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 should be permitted to be met by the Official Liquidator from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement. The petitioner (Official Liquidator) argued for the acceptance of the accounts, the payment of audit fees, and the covering of application costs from available funds, citing the necessity of these actions for the proper winding up of the company. The revenue or State did not appear to have made any specific arguments recorded in the judgment.