M/S.Raksha Plantations 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 (No. 88 of 2026) under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought permission to take on record the half-yearly accounts of M/s. Raksha Plantations Private Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated February 9, 2026. Crucially, the application also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth, Chartered Accountants. Additionally, the Official Liquidator sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement.

Held

The Court allowed the Company Application. Regarding the first issue, the Court ordered that the half-yearly accounts of M/s. Raksha Plantations Private Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated February 9, 2026, be taken on record. On the second issue, the Court accorded permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth, Chartered Accountants. For the third issue, 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 funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court found the reasons stated in the accompanying affidavit to be sufficient and considered the half-yearly accounts filed by the Official Liquidator.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the Independent Auditors' Report for M/s. Raksha Plantations Private Limited (in liquidation) for the period 01.04.2024 to 30.09.2024. 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 & Kanth, Chartered Accountants. 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): The Official Liquidator presented the half-yearly accounts and the auditors' report for the specified period and sought the Court's approval for the payment of audit fees and application costs. The arguments were based on the necessity of these payments for the proper winding up of the company and the management of its liquidation proceedings. No specific statutory provisions beyond the Companies Act and Rules were cited in argument for these reliefs. Revenue/State: No arguments were recorded on behalf of the Revenue or the State in this matter.