In The Matter Of M/S.Targof Pure Drugs Limited (In Liqn) vs. Nil

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed Company Application No. 195 of 2025. The application sought to take on record the half-yearly accounts of M/s Targof Pure Drugs Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024. It also requested permission to make a payment of Rs. 500 plus GST to the independent auditors, M/s KBS and Associates, Chartered Accountants, for their report dated May 31, 2025. Additionally, the Official Liquidator sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement.

Held

The Court held that the application was ordered. Specifically, the half-yearly accounts of the subject Company, which is in liquidation for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 31.05.2025 submitted by M/s KBS & Associates, Chartered Accountants, were taken on record. Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. Furthermore, permission was granted 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 was available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The reasoning was based on the satisfaction with the reasons mentioned in the supporting affidavit and consideration of the filed accounts.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025, should be taken on record? The Official Liquidator argued that these documents were necessary for the proper administration of the liquidation process and sought the court's approval to proceed. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors? The Official Liquidator contended that this payment was essential for obtaining the auditor's report, which was a prerequisite for the court's consideration of the accounts. 3. Whether the costs of the application could be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement? The Official Liquidator submitted that these funds were the appropriate source for meeting such administrative expenses, especially if the company's immediate funds were insufficient.