M/S. Pennar Paterson Limited(In Prov.Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application (No. 124 of 2025) under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Company (Court) Rules, 1959. The application sought permission to take on record the half-yearly accounts of M/s. Pennar Paterson Limited (in Provisional 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. Padmanabha Rao and Co., Chartered Accountants, 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 from the Official Liquidator and heard by the High Court.

Held

The Court, having been satisfied with the reasons mentioned in the supporting affidavit and upon considering the half-yearly accounts filed by the Official Liquidator, ordered the application. The Court took on record the half-yearly accounts of the company in liquidation for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 21.05.2025. 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 make the said payment from the available funds of the company (in liquidation), or from the Estate and Establishment Fund account if no funds were available in the company's account, subject to reimbursement from the funds of the company upon realization of its assets. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 27.05.2025. 2. Whether permission should be granted to make the payment of 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 account, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator argued that the application was filed in compliance with the relevant provisions of the Companies Act and Rules. The supporting affidavit provided the necessary reasons for the application. The auditors' report was submitted, and the audit fee was a necessary expense for the liquidation process. Revenue/State: No specific arguments were recorded for the Revenue or State in the judgment.