M/S. Targof Pure Drugs Limited(In Liqn) vs. No Respondent
Facts
The Official Liquidator (OL) of M/s Targof Pure Drugs Limited (in liquidation) filed a Company Application before the Telangana High Court. The application sought permission to take on record the half-yearly accounts for the period 01.10.2022 to 31.03.2023, along with the auditor's report dated 10.04.2025. Crucially, the OL also requested permission to pay an audit fee of Rs. 500/- plus GST to the chartered accountants, M/s. Murthy and Kanth. The application further prayed for 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 from the OL and argued by their counsel.
Held
The Court held that the half-yearly accounts of M/s Targof Pure Drugs Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025 submitted by M/s. Murthy and Kanth, Chartered Accountants, should be taken on record. The Court was satisfied with the reasons provided in the supporting affidavit filed by the Official Liquidator. Furthermore, the Court granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Court also permitted the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if company funds were unavailable, with the condition of reimbursement from the company's assets upon realization. The Court did not expressly leave any issues undecided.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01.10.2022 to 31.03.2023 and the accompanying auditor's report dated 10.04.2025. The Official Liquidator argued for the acceptance of these documents as part of the liquidation process. The revenue or State did not appear to have made any specific arguments against this, as the judgment indicates the Court was satisfied with the reasons in the affidavit. 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 necessary for the proper conduct of the liquidation proceedings and for obtaining the auditor's report. No opposing arguments from the revenue or State were recorded.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 31681 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THUR AY, THE SEVENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPANY APPLiCATION No. 134 ot 2025 IN coMPANY PETITION NO: 164 ot2OO4 ln the matter of the Companies Act, 1956 And ln the matter of M/s Targof Pure Drugs Limited(in liqn), The Official Liquidator, attached to the Honble High Court of Telangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad - 5000ffi ...APPlicant Application under Section 462 of the Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules, 1959 praying that this Court may be pleased to: (i) take the half-yearly accounts of the subject company (in liquidation) for the period from 01.10.2022 lo 31 .03.2023, along with Auditor Report dated 10.04.2025 submitted on 05.06.2025 by M/s. Murthy and Kanth, Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. (ii) cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the Official Liquidator from the available f
The judgment continues below.
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