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

Facts

The Official Liquidator of M/s. Pennar Paterson Limited (in Provisional Liquidation) filed Company Application No. 172 of 2025 before the Telangana High Court. The application sought to take on record the half-yearly accounts for the period 01.10.2023 to 31.03.2024, along with the Independent Auditor's Report dated 27.05.2025. The Official Liquidator also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. Additionally, the application requested 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.

Held

The Court, having perused the supporting affidavit and considered the half-yearly accounts filed by the Official Liquidator, found the reasons presented to be satisfactory. Consequently, the Court ordered as follows: (a) The half-yearly accounts of M/s. Pennar Paterson Limited (in liquidation) for the period 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 27.05.2025 submitted by M/s. Padmanabha Rao & Co., Chartered Accountants, were taken on record. (b) Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. (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 account 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 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 01.10.2023 to 31.03.2024 and the accompanying Auditor's Report dated 27.05.2025, as submitted by the Official Liquidator. 2. Whether permission should be granted to the Official Liquidator to pay an 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 company's funds or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and auditor's report for the specified period and sought the Court's approval for the payment of audit fees and application costs, citing the necessity for these expenses in the liquidation process. The Official Liquidator relied on the Companies Act, 1956, and the Companies (Court) Rules, 1959, for the procedural aspects of the application. Revenue/State: No arguments were recorded for the Revenue or State in the provided judgment.