M/S. Nagarjuna Coated Tubes Limited.(In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Nagarjuna Coated Tubes Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates, Chartered Accountants, and 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 and heard by the High Court.

Held

The Court accepted the prayer of the Official Liquidator. It held that the half-yearly accounts of M/s. Nagarjuna Coated Tubes Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023, along with the auditors' reports submitted by M/s. KBS and Associates, Chartered Accountants, should be taken on file. The Court also implicitly granted permission for the payment of the audit fee as part of accepting the application. The reasoning was based on the Official Liquidator's submission and the perusal of the auditors' reports, indicating compliance with the necessary procedural requirements for the liquidation process. The operative direction was to take the accounts and reports on record, thereby ordering the company application accordingly.

Key Issues

1. Whether the half-yearly accounts and the auditors' reports for M/s. Nagarjuna Coated Tubes Limited (in liquidation) for the period October 1, 2022, to March 31, 2023, should be taken on record by the Court, as required under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. 2. Whether permission should be granted to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates. Petitioner's Arguments: The Official Liquidator, through their counsel, presented the half-yearly accounts and auditors' reports and prayed for them to be taken on record. They also sought permission for the payment of audit fees and associated costs, indicating that these were necessary steps in the liquidation process. Revenue's Arguments: The judgment does not record any specific arguments from the revenue or state side. The matter proceeded based on the Official Liquidator's application and submissions.