M/S. Oban Finance And Investments 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. 34 of 2025. The application sought to take on record the half-yearly accounts of M/S. OBAN Finance & Investments Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023, along with the Auditors' Report dated November 1, 2024, submitted by M/s KBS and Associates. The Official Liquidator also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditor and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The Court perused the auditors' reports and heard the counsel for the Official Liquidator.

Held

The Court held that the half-yearly accounts and the auditors' reports of M/S. OBAN Finance & Investments Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023, should be taken on record. The Court accepted the prayer made by the Official Liquidator. The reasoning was based on the perusal of the auditors' reports with the assistance of the learned counsel for the Official Liquidator. The Court found the application to be in order and granted the relief sought. The operative direction was to take the half-yearly accounts and auditors' reports on record. The issue regarding the payment of audit fees and costs was implicitly granted as part of the overall acceptance of the application.

Key Issues

1. Whether the half-yearly accounts and auditors' reports of the company in liquidation, M/S. OBAN Finance & Investments Limited, for the period from October 1, 2022, to March 31, 2023, should be taken on record by the Court, as prayed for by the Official Liquidator under Section 462 of the Companies Act, 1956, read with Rule 306 of the Companies (Court) Rules, 1959? The Petitioner (Official Liquidator) argued that the filing of these accounts and reports is a procedural requirement for the proper administration of the company in liquidation and sought the Court's approval to record them. The Petitioner also sought permission to pay the audit fee and associated costs. The Revenue or State did not file any counter or present any arguments in this matter, as recorded in the judgment.