M/S. Ominitrode Aditya Electrodes Limited. vs. No Respondent

Facts

This matter concerns a Company Application filed by the Official Liquidator for M/s. Ominitrode Aditya Electrodes Limited (in provisional liquidation). The application, filed under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959, sought to take on record the half-yearly accounts of the company for the period 01.04.2022 to 30.09.2022, along with the Auditor's Report dated 17.06.2024 submitted by M/s. KBS and Associates. The Official Liquidator also sought permission to pay the audit fee of Rs. 5000 plus GST to the auditors 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 argued by the counsel for the Official Liquidator.

Held

The Court accepted the prayer of the Official Liquidator. The half-yearly accounts of M/s. Ominitrode Aditya Electrodes Limited (in provisional liquidation) for the period 01.04.2022 to 30.09.2022, along with the Auditor's Report dated 17.06.2024 submitted by M/s. KBS and Associates, were taken on record. The Court also implicitly permitted the payment of the audit fee of Rs. 5000 plus GST and the costs associated with the application, as these were part of the Official Liquidator's prayer and no objection was raised. The reasoning was based on the perusal of the Auditor's Reports with the assistance of the counsel for the Official Liquidator, indicating satisfaction with the submitted documents. The ratio decidendi is that when an Official Liquidator files an application in compliance with statutory provisions for the acceptance of accounts and auditor's reports, and no opposing arguments are presented, the Court will grant the necessary approvals.

Key Issues

1. Whether the half-yearly accounts and the Auditor's Report for the period 01.04.2022 to 30.09.2022, submitted by M/s. KBS and Associates, should be taken on record by the Court, as per Section 462 of the Companies Act, 1956 and Rules 298 and 306 of the Companies (Court) Rules, 1959? The petitioner (Official Liquidator) argued that the application was filed in compliance with the relevant provisions of the Companies Act and Rules, seeking judicial acceptance of the company's financial statements and the auditor's findings. The Official Liquidator sought permission to proceed with the payment of audit fees and other associated costs from the available funds of the company in liquidation. The revenue or State did not present any arguments as this was an application by the Official Liquidator for administrative and procedural approval.