M/S.Global Drugs Private 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. 24 of 2026) under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought permission to record the half-yearly accounts of M/s Global Drugs Private Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s KBS & Associates, 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 held that the half-yearly accounts of M/s Global Drugs Private Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, submitted on January 22, 2026, by M/s KBS & Associates, Chartered Accountants, should be taken on record. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Furthermore, permission was accorded to the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court allowed the application.

Key Issues

1. Whether the Court should take the half-yearly accounts of the company in liquidation for the period from 01.04.2024 to 30.09.2024 on record, along with the Independent Auditors' Report dated 12.01.2026. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. 3. Whether the costs of the application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund. The Official Liquidator argued that the application was filed in accordance with the relevant provisions of the Companies Act and Rules, and that the reliefs sought were necessary for the proper administration of the company in liquidation. No arguments were recorded for the revenue or State.