M/S.Southern Pesticides Corporation Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator of M/s Southern Pesticides Corporation Limited (in liquidation) filed a Company Application before the High Court of Telangana. The application sought to take on record the half-yearly accounts for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025. The Official Liquidator also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s KBS and Associates, Chartered Accountants. Additionally, the application requested permission 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 and argued by the Official Liquidator's counsel.

Held

The Court held that 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 on 09.06.2025 by M/s. KBS & Associates, Chartered Accountants, are 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 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 was satisfied with the reasons mentioned in the supporting affidavit and upon considering the half-yearly accounts filed by the Official Liquidator.

Key Issues

1. Whether the Court should take on record 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, as required under the Companies Act, 1956 and the Companies (Court) Rules, 1959? 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 and Associates, Chartered Accountants? 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the available funds of the company or the Estate and Establishment Fund, subject to reimbursement? The Petitioner (Official Liquidator) argued for the approval of the accounts, the payment of audit fees, and the meeting of application costs. The Revenue or State did not file any specific arguments or objections in this matter as it pertains to the internal administration and financial management of a company in liquidation, overseen by the Official Liquidator and the Court.