M/S.Twin Cities Permanent Fund 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. 132 of 2026) seeking permission to take on record the half-yearly accounts of M/s. Twin Cities Permanent Fund Limited (in liquidation) for the period from 01.10.2024 to 31.03.2025, along with the Independent Auditor's Report. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Company, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The Official Liquidator also sought an exemption from filing annual/final accounts for the financial year 2024-25, as the half-yearly accounts were being filed.

Held

The Court held that the half-yearly accounts of the subject company, which is in liquidation, for the period from 01.10.2024 to 31.03.2025, along with the Independent Auditors' Report dated 03.04.2026 submitted on 06.04.2026 by M/s. Padmanabha Rao & Company, Chartered Accountants, are taken on record. Permission was accorded to the learned 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 did not explicitly address the issue of exemption from filing annual/final accounts, but by taking the half-yearly accounts on record and granting permissions, it implicitly accepted the procedural filings.

Key Issues

1. Whether the half-yearly accounts of the company (in liquidation) for the period 01.10.2024 to 31.03.2025, along with the Independent Auditor's Report, should be taken on record by the Court, as required under Section 462 of the Companies Act, 1956? 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. Padmanabha Rao & Company? 3. Whether the costs of the application should be permitted to be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund, subject to reimbursement? Contentions: Petitioner (Official Liquidator): Argued that half-yearly accounts are being filed regularly as required by Section 462 of the Companies Act, 1956. Submitted that annual accounts are merely a combination of the two half-yearly financial statements. Sought permission for audit fee payment and cost recovery as per standard procedure. Revenue/State: No arguments recorded for the Revenue or State in the judgment.