M/S.Ontime Pharma Limited (In Liqn) vs. Nil
Facts
The Official Liquidator of M/s. Ontime Pharma Limited (in liquidation) filed a Company Application seeking permission to take on record the half-yearly accounts for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 27.05.2025. The application also prayed for permission to make payment of an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. Furthermore, the Official Liquidator sought permission to meet the costs of the application from the company's funds or, if unavailable, from the Estate and Establishment Fund, subject to reimbursement upon realization of company assets. The application was supported by an affidavit and heard by the High Court.
Held
The Court held that the half-yearly accounts of M/s. Ontime Pharma Limited (in liquidation) for the period 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 27.05.2025, should be taken on record. The Court also granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao & Co., Chartered Accountants. This decision was based on the Court being satisfied with the reasons presented in the supporting affidavit and considering the submitted accounts. Permission was further accorded to the Official Liquidator to make the audit fee payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if company funds were insufficient, with the condition that such payments would be reimbursed from the company's assets upon their realization. The Court did not expressly leave any issue undecided.
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, as required under the Companies Act, 1956 and relevant Rules? The Official Liquidator contended that these documents were duly prepared and submitted. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Chartered Accountants for their services? The Official Liquidator argued that this payment was necessary for the audit of the company's accounts. 3. Whether the costs of the Company Application could be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement? The Official Liquidator sought this permission to ensure the smooth functioning of the liquidation process. The Revenue or State did not appear to have made any specific arguments as the matter was an application by the Official Liquidator.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3168 ] 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.164 of 2025 IN COMPANY PETITION NO: 167 of 2OO1 ln the matter of the Companies Act, 1956 And ln the mafter of M/s.Ontime pharma Limited (in liqn)
The. official Liquidator, attached to the Hon'bre High court of reranqana. and Andhra Pradesh, lst floor, Corporate Bhawan, erndirgrda Nr'g"b..'flyl.iZ;ii: 500068 ...Applicant Application under Section 462 of the companies Act, 1gs6 read with Rule 2g8 and Rule 306 of the companies (court) Rures, .r g59 praying that this court may be pleased to: i. take the hatf-yearly.a:^"o^1!: of the subject company (in tiquidation) for the period from 01.10.2023 to. 31 .O3.202 , aiong *itf, inaep.nlent Auditors' Report dated 27.o5.202s submitted on 63.06.202s [v nil, Padmanabha Rao and Co., Chartered Accountants on recori and permission may be accorded to make the payment of audit fee of Rs.500t 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 officiar Liquidator
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