M/S.Raksha Plantations Private Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed a company application seeking permission to take on record the half-yearly accounts of M/s Raksha Plantations Private Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024. The application also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s KBS & Associates, Chartered Accountants, and 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 stated in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered the company application. The Court granted permission to take on record the half-yearly accounts of M/s Raksha Plantations Private Limited (in liquidation) for the period 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 31.05.2025. Furthermore, permission was accorded 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, with the condition that such payments would be subject to reimbursement from the company's funds upon realization of its assets. No issues were expressly left undecided.

Key Issues

1. Whether permission should be granted to take on record the half-yearly accounts of the company in liquidation for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025. The Official Liquidator argued for this permission, presenting the accounts and report for the Court's consideration. 2. Whether permission should be accorded to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator contended that this fee is necessary for the audit services rendered and should be permitted. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The Official Liquidator argued that these funds are available for such expenses, with a provision for reimbursement once company assets are realized. The revenue or State did not record any specific arguments.