M/S. Sri Laxmi Saraswathi Papers Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed a Company Application (CA No. 148 of 2025) 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. Sri Laxmi Saraswathi Papers Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy and Kanth, Chartered Accountants. The Official Liquidator further prayed for 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.

Held

The Court, having satisfied itself with the reasons mentioned in the supporting affidavit and upon considering the half-yearly accounts filed by the Official Liquidator, ordered the Company Application. Specifically, the Court took on record the half-yearly accounts of M/s. Sri Laxmi Saraswathi Papers Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025. Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, the Court granted 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 account if company funds were unavailable, with the condition of reimbursement upon realization of the company's assets. The Court also implicitly permitted the costs of the application to be met from these funds as per the prayer.

Key Issues

1. Whether 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, should be taken on record, as per the Companies Act, 1956 and 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, M/s. Murthy and Kanth, Chartered Accountants. 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, through their counsel, presented the half-yearly accounts and auditor's report and sought the court's approval for their record. They also requested permission to pay the audit fee and meet the application costs, citing the necessity for these payments in the liquidation process. The Official Liquidator relied on the supporting affidavit filed in the application. Arguments for the Revenue/State: The judgment does not record any specific arguments presented by the revenue or state authorities in opposition to the application.