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

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 159 of 2025. The application sought permission to take on record the half-yearly accounts of M/s. Leafin India Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024. It also requested 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 sought permission to meet the costs of the application, including court fees and notary charges, from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets.

Held

The Court, having reviewed the supporting affidavit and the half-yearly accounts filed by the Official Liquidator, found the reasons satisfactory. Consequently, the Court ordered as follows: (a) The half-yearly accounts of M/s. Leafin India Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 27.05.2025, were taken on record. (b) Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500 plus GST to the auditor. (c) Permission was also 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 did not expressly leave any issues undecided.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors Report, should be taken on record, as per 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? 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? Arguments for the Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and the auditor's report, seeking judicial approval to record them. They also requested permission to pay the stipulated audit fee, including GST, and to utilize available funds for application costs, with a provision for future reimbursement. No arguments were recorded for the revenue or State.