M/S. Premier Aqua Farms Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. Premier Aqua Farms Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023. The application also sought 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 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. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having considered the reasons in the supporting affidavit and the half-yearly accounts filed by the Official Liquidator, ordered as follows: a) The half-yearly accounts of M/s. Premier Aqua Farms 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 the said 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 funds of the Company (in liquidation) upon realization of its assets. The Court was satisfied with the reasons presented by the Official Liquidator.

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, as required by the Companies Act, 1956 and the Companies (Court) Rules, 1959? The Official Liquidator argued for taking the accounts on record to comply with statutory requirements and facilitate the liquidation process. 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 is necessary for the audit services rendered, as per the agreement and standard practice. 3. Whether the costs associated with the application can be met from the company's funds or the Estate and Establishment Fund, with a provision for reimbursement? The Official Liquidator sought this to ensure the smooth functioning of the liquidation process without immediate financial strain on the estate.