M/S. Nagarjuna Finance Limited. vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. Nagarjuna Finance Limited (in liquidation) for the period from 01.01.2022 to 30.06.2022, along with the Auditor's Report dated 17.06.2024 submitted by M/s KBS and Associates. The application also sought permission to pay an audit fee of Rs 5000/- plus GST to the auditor and to meet court expenses from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and argued by the Official Liquidator's counsel.
Held
The Court accepted the prayer made by the Official Liquidator. It held that the half-yearly accounts and the Auditors' Reports of M/s. KBS & Associates, Chartered Accountants, for the company in liquidation, for the period from 01.01.2022 to 30.06.2022, should be taken on record. The Court perused the Auditors' Reports with the assistance of the counsel for the Official Liquidator and found the application to be in order. The ratio decidendi is that procedural applications by the Official Liquidator for recording accounts and reports in liquidation proceedings, when filed correctly, are to be accepted by the Court. The operative direction was that the Company Application is ordered accordingly, meaning the accounts and reports are officially recorded.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and Auditor's Report of the company in liquidation for the period 01.01.2022 to 30.06.2022, as submitted by the Official Liquidator. (Question of procedure under the Companies Act, 1956 and Companies (Court) Rules, 1959). The petitioner (Official Liquidator) argued that the application was filed in compliance with the relevant provisions of the Companies Act, 1956, and the Companies (Court) Rules, 1959, and sought the Court's permission to formally record these documents. The revenue or State did not appear to have made any specific arguments as the matter pertains to the liquidation proceedings of a private company and the Official Liquidator's administrative functions.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
I3405l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUE AY,THE FIFTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENW FOUR PRESENT THE HONOURABLE SMT JUSTICE MOUSHUMI BHATTACHARYA COMPANY APPLICATION No. 17 oI 2024 IN COMPANY PETITION NO: 80 of 2004 ln the Matter of the Companies Act, 1956 AND ln the Matter of M/s. Nagarjuna Finance Limited', (in liqn)
The Official Liquidator, attached to the Hon'ble High Court of Telangana' and n"ir,i, piia""i', iiildor, iorporate Bhawan, Bandlaguda, Nagole' Hyderabad - 500068 ...APPLICANT Applicationundersection462oftheCompaniesAct,l956readwithRuleil29S and iule 306 of the companies (court) Rutes, 1959) Praying that this Hon'ble Court may be pleased to: i)takethehalf-yearlyaccountsofthesubjectcompany(inliquidation),forthe ' perroa trom ti.t.o+.2022 to 30.Og.2O22, along with Auditor's Report dated '17.06.2024 submitted on 20 -06.2024 by M/s KBS and Associates ' chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs 500l plus GST to said auditor' ii; lost of this application (Court fee Stam-ps and Notary Charges etc ').may be permitted to be mei out by the Official Liquidator from the available
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