M/S.Lamino Paper Products Private 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. Lamino Paper Products Private Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024. The application also sought permission to pay an audit fee of Rs. 500 plus GST to the independent auditors, M/s. Padmanabha Rao and Co., 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 the auditor's report.

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 application. Specifically, the Court took on record the half-yearly accounts of M/s. Lamino Paper Products Private Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024, along with the Independent Auditors Report dated May 27, 2025. Furthermore, permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Court also accorded permission for 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 the condition of subsequent reimbursement from the company's assets upon realization. The costs of the application were also permitted to be met from these funds.

Key Issues

1. Whether the Court should 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 27.05.2025, as required under the Companies Act, 1956 and the Companies (Court) Rules, 1959. 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 the Official Liquidator should be permitted to meet the costs of the application from the available funds of the company or the Estate and Establishment Fund, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditor's report, satisfying the procedural requirements. He argued that the payment of audit fees and the costs of the application were necessary for the proper functioning of the liquidation process and sought the Court's approval for these expenditures as per the relevant rules. Arguments for the Revenue/State: The judgment does not record any specific arguments made by the revenue or state authorities in this matter.