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

Facts

The Official Liquidator (OL) for M/s Kohinoor Cements Limited (in liquidation) filed a Company Application before the High Court for the State of Telangana. The application sought to take on record the half-yearly accounts for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 04.07.2025. The OL also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy and Kanth, Chartered Accountants. The application further requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of company assets. The application was supported by an affidavit and heard by the Court.

Held

The Court held that the half-yearly accounts of M/s Kohinoor Cements Limited (in liquidation) for the period 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 04.07.2025, should be taken on record. The Court found the reasons mentioned in the supporting affidavit satisfactory. Furthermore, the Court granted permission to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors. The Court also 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 company funds were insufficient, with a condition of reimbursement upon realization of the company's assets. The Court did not leave any issue expressly undecided.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 04.07.2025, should be taken on record by the Court? The Official Liquidator argued that these documents are essential for the proper administration of the company in liquidation and for transparency. The revenue or State did not appear to have made any specific arguments against taking the accounts on record, as the matter pertains to the internal administration of a company under liquidation. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors? The Official Liquidator contended that the audit fee is a necessary expense for the proper conduct of liquidation proceedings and that the auditors have rendered their services. The revenue or State did not appear to have raised any objections to this payment.