M/S. Sri Laxmi Fibres 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 permission to take on record the half-yearly accounts of M/s Sri Laxmi Fibers Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s KBS & Associates, Chartered Accountants. The Official Liquidator further 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 assets. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having been satisfied with the reasons mentioned in the supporting affidavit and upon considering the half-yearly accounts filed by the Official Liquidator, ordered as follows: (a) The half-yearly accounts of M/s Sri Laxmi Fibers Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Auditor's Report dated May 31, 2025, submitted on June 9, 2025, by M/s KBS & Associates, Chartered Accountants, are taken on record. (b) Permission is accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. (c) Permission is also accorded 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 account if no fund is available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court found no impediment to granting the reliefs sought by the Official Liquidator.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of M/s Sri Laxmi Fibers Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated May 31, 2025. 2. Whether permission should be granted to the Official Liquidator to make payment of audit fees amounting to Rs. 500/- plus GST to the auditors. 3. Whether permission should be granted to the Official Liquidator to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator argued that the application was made under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The supporting affidavit provided the necessary reasons for the application. The Official Liquidator sought the Court's approval for the financial statements and the payment of audit fees and application costs. Revenue/State: No specific arguments were recorded for the Revenue or State in the judgment.