M/S.Resolute Electronics Private.Limited. (In Liqn) vs. No Respondent

Facts

This matter concerns a Company Application filed by the Official Liquidator, attached to the High Court of Telangana, for M/s. Resolute Electronics Private Limited (in liquidation). The application, filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959, sought to place the half-yearly accounts of the company for the period 01/04/2023 to 30/09/2023 on record. 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, whose report was submitted on 03/06/2025. Additionally, the application sought 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.

Held

The Court, having satisfied with the reasons presented in the supporting affidavit and considering the half-yearly accounts, ordered as follows: a) The half-yearly accounts of M/s. Resolute Electronics Private Limited (in liquidation) for the period 01/04/2023 to 30/09/2023, along with the Independent Auditor's Report dated 27/05/2025, were taken on record. b) Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. c) Permission was also granted to the Official Liquidator to make this 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's decision was based on the satisfaction with the reasons provided by the Official Liquidator and the consideration of the filed accounts and report.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01/04/2023 to 30/09/2023, along with the Independent Auditor's Report dated 27/05/2025, should be taken on record. The Official Liquidator, as the applicant, contended that these documents are necessary for the proper administration of the company in liquidation. The revenue or State did not appear to have presented any arguments as the matter was presented as a Company Application for administrative orders. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator argued that this payment is a necessary expense for the audit of the company's accounts. 3. Whether the costs of the application can be met from the company's funds or the Estate and Establishment Fund. The Official Liquidator sought this permission to ensure the smooth functioning of the liquidation process.