M/S.Lamino Paper Products Private Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed Company Application No. 58 of 2025. The application sought to take on record the half-yearly accounts of M/s. Lamino Paper Products Private Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024. The Official Liquidator also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. Additionally, the application requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit from the Official Liquidator and argued by their counsel.

Held

The Court held that the half-yearly accounts of the subject company (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024, should be taken on record. The Court perused the auditors' report and, being satisfied, ordered that it be taken on record. Furthermore, the Court accorded permission to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The costs of the application were also permitted to be met from the available funds of the company (in liquidation). The Court explicitly stated that there shall be no order as to costs, implying that each party bears their own costs beyond what was permitted from the company's funds. The ratio decidendi is that the Court will approve routine procedural steps and necessary expenses in liquidation proceedings upon being satisfied with the documentation and compliance with relevant rules.

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 Independent Auditors' Report dated 13.12.2024, should be taken on record. This issue turns on the procedural requirements under 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 make the payment of audit fee of Rs. 500/- plus GST to the auditors. This issue relates to the approval of expenses incurred in the liquidation process. Petitioner's Arguments: The Official Liquidator, through their counsel, presented the application and the supporting documents. The arguments focused on fulfilling the statutory requirements for presenting accounts and seeking approval for necessary expenses, including audit fees and application costs. Revenue/State's Arguments: No arguments were recorded for the revenue or state in the judgment.