M/S. Targof Pure Drugslimited.(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed Company Application No. 272 of 2025 in C.P. No. 164 of 2004. The application, filed under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959, sought permission to take on record the half-yearly accounts of M/s Targof Pure Drugs Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s KBS and 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.

Held

The Court, having been satisfied with the reasons stated in the affidavit filed by the Official Liquidator and having considered the half-yearly accounts, granted the application. Specifically, the Court ordered that the half-yearly accounts of M/s Targof Pure Drugs Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Auditor's Report dated May 31, 2025, submitted on June 9, 2025, by M/s KBS & Associates, Chartered Accountants, be taken on record. Furthermore, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Court also granted permission to make the said 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. No issues were expressly left undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated May 31, 2025, submitted on June 9, 2025. 2. Whether permission should be granted to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors. 3. Whether permission should be granted to meet the costs of the application from the available funds of the company (in liquidation) or the Estate and Establishment Fund, subject to reimbursement. Petitioner's Arguments: The Official Liquidator, representing the applicant, presented the half-yearly accounts and the auditor's report and sought the Court's approval for the payment of audit fees and application costs. No specific arguments were recorded for the revenue or State in this matter, as it pertains to the administration of a company in liquidation.