M/S. South Asian Agro Industrieslimited. (In Liqn.) vs. No Respondent

Facts

This matter concerns a Company Application filed by the Official Liquidator of M/s. South Asian Agro Industries Limited (in liquidation) before the High Court for the State of Telangana. The application, filed under Section 462 of the Companies Act, 1956, sought to take on record the half-yearly accounts of the company for the period from April 1, 2023, to September 30, 2023. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. KBS and Associates. The Official Liquidator further sought permission to meet the costs of the application, including court fees and notary charges, 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 Court.

Held

The Court, having been satisfied with the reasons presented in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered the application. Specifically, the Court took on record the half-yearly accounts of M/s. South Asian Agro Industries 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. Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. Furthermore, permission was granted to the Official Liquidator to make this 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, with the condition that such payments would be subject to reimbursement from the funds of the company upon the realization of its assets. The Court did not expressly leave any issues undecided.

Key Issues

1. Whether the half-yearly accounts of M/s. South Asian Agro Industries Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated May 31, 2025, submitted on June 9, 2025, should be taken on record. 2. Whether permission should be granted to the Official Liquidator to make payment of the audit fee of 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): Argued for the acceptance of the accounts and the auditor's report, and for permission to pay the audit fee and application costs as outlined in the application, citing the necessity for proper liquidation proceedings. The Official Liquidator relied on the supporting affidavit detailing the reasons for the application. Revenue/State: No arguments were recorded for the revenue or State in the judgment.