M/S.Premier Aqua Farms Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application (CA No. 258 of 2025) under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought permission to take on record the half-yearly accounts of M/s Premier Aqua Farms Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s KBS & Associates, Chartered Accountants, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit filed by the Official Liquidator and heard by the High Court.

Held

The Court, having been satisfied with the reasons mentioned in the affidavit filed by the Official Liquidator and having considered the half-yearly accounts, ordered as follows: (a) The half-yearly accounts of M/s Premier Aqua Farms Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 31.05.2025 submitted on 09.06.2025 by M/s KBS & Associates, Chartered Accountants, are taken on record. (b) Permission is accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. (c) Permission is also accorded to the Official Liquidator to make the said payment from the available funds of the Company (in liquidation), or from the Estate and Establishment Fund account if no fund is available in the company's account, subject to reimbursement from the funds of the company (in liquidation) upon realization of its assets. The Court found no impediment to granting the reliefs sought by the Official Liquidator.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025, should be taken on record. (This issue pertains to procedural compliance under the Companies Act and Rules). 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s KBS & Associates. (This issue concerns the authorization of expenses related to the liquidation process). 3. Whether the costs of the Company Application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement. (This issue relates to the management of liquidation expenses). Petitioner's Arguments: The Official Liquidator, through their counsel, presented the application and supporting affidavit, seeking the court's approval for the aforementioned actions. No specific arguments against the application were recorded from any party.