M/S.Global Drugs Private Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 169 of 2025. The application sought to take on record the half-yearly accounts of M/s. Global Drugs Private Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024. 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. The Official Liquidator further prayed for permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having considered the supporting affidavit and the half-yearly accounts filed by the Official Liquidator, ordered the application. The Court took on record the half-yearly accounts of M/s. Global Drugs Private Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 27.05.2025. Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. 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 if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court was satisfied with the reasons presented in the affidavit.

Key Issues

1. Whether 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 27.05.2025, should be taken on record? 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fee of Rs. 500/- plus GST to the auditors? 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? Petitioner's Arguments: The Official Liquidator, through their counsel, presented the half-yearly accounts and the auditor's report, seeking judicial approval to proceed with the payment of audit fees and application costs. The arguments focused on the procedural necessity of obtaining court permission for these actions as per the Companies Act, 1956, and the Companies (Court) Rules, 1959. Revenue/State's Arguments: No specific arguments were recorded from the revenue or state in the provided judgment.