In The Matter Of M/S. Pec Electrical 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, in the matter of M/s. PEC Electrical 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 permission to take on record the half-yearly accounts for the period from 01.04.2023 to 30.09.2023. 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, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The Official Liquidator filed an affidavit supporting the application, and arguments were heard from the counsel for the Official Liquidator.

Held

The Court, having satisfied with the reasons mentioned in the supporting affidavit and considering the half-yearly accounts filed by the Official Liquidator, ordered as follows: (a) The half-yearly accounts of the subject Company, in liquidation, for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025 submitted by M/s. Padmanabha Rao & Co., Chartered Accountants, are taken on record. (b) Permission is accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. (c) Permission is also accorded 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 fund is available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 27.05.2025. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the available funds of the company (in liquidation) or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator argued for the approval of the accounts and the payment of audit fees and application costs, supported by the affidavit and the auditor's report. The application was made in accordance with the relevant provisions of the Companies Act and Rules. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.