M/S.Leafin INDIA Limited(In Liqn). vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought to take on record the half-yearly accounts of M/s Leafin India Limited (in liquidation) 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. Murthy and Kanth, Chartered Accountants, and to meet the application costs from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The application was supported by an affidavit and heard by the Court.

Held

The Court held that the application was to be ordered. Specifically, the half-yearly accounts of the subject company, which is in liquidation, for the period from 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 04.07.2025 submitted on 08.07.2025 by M/s. Murthy & Kanth, Chartered Accountants, were taken on record. 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 the said payment from the available funds of the Company (in liquidation), or from the Estate and Establishment Fund account if no fund was available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court was satisfied with the reasons mentioned in the supporting affidavit.

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, as required by Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959? 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy and Kanth, Chartered Accountants? 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the available funds of the company in liquidation or the Estate and Establishment Fund account, subject to reimbursement? Arguments for the Petitioner (Official Liquidator): The learned counsel for the Official Liquidator presented the application, highlighting the need to take the accounts on record and seek permission for the payment of audit fees and application costs. The supporting affidavit detailed the reasons for the application. Arguments for the Revenue/State: No arguments were recorded for the Revenue or State in the judgment.