In The Matter Of M/S. Raksha Plantations PVT.LTD. vs. No Respondent

Facts

The Official Liquidator (OL) of M/s. Raksha Plantations Pvt. Ltd. (in liquidation) filed a Company Application under Section 462 of the Companies Act, 1956, and relevant Rules. The application sought permission to take on record the half-yearly accounts for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025. Crucially, it requested permission to pay an audit fee of Rs. 500/- plus GST to the chartered accountants, M/s. Murthy and Kanth. The OL also sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon asset realization. The application was supported by an affidavit and argued by the OL's counsel.

Held

The Court, having been satisfied with the reasons presented 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. Raksha Plantations Pvt. Ltd. (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025 submitted by M/s. Murthy and Kanth. Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Additionally, permission was granted to 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, subject to reimbursement from the company's funds upon realization of its assets. The Court found the OL's request to be in order and granted the necessary permissions.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025? (Question of procedure under the Companies Act, 1956 and Rules). 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor? (Question of financial propriety and statutory compliance regarding payment of professional fees). 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? (Question of financial management and cost recovery in liquidation proceedings). Arguments for the Petitioner (Official Liquidator): The OL presented the half-yearly accounts and auditor's report for the specified period and sought the Court's approval to take them on record. The OL also requested permission to pay the audit fee of Rs. 500/- plus GST, as this was a necessary professional charge for the liquidation process. Furthermore, the OL sought authorization to utilize company funds or the Estate and Establishment Fund for application costs, with a provision for reimbursement, to ensure the smooth functioning of the liquidation process. Arguments for the Revenue/State: No arguments were recorded for the Revenue or State in the judgment.