In The Matter Of M/S. Reil Products Limited(In Liqn) vs. No Respondent

Facts

This matter concerns Company Application No. 107 of 2025 filed by the Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, for M/s. REIL Products 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 of the company for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 27.05.2025. It 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, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund.

Held

The Court, having considered the reasons stated in the affidavit filed by the Official Liquidator and the arguments presented, ordered as follows: Firstly, the half-yearly accounts of M/s. REIL Products Limited (in liquidation) for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 27.05.2025, were taken on record. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Thirdly, permission was 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, with the condition of reimbursement from the company's funds upon realization of its assets. The Court was satisfied with the reasons provided by the Official Liquidator.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of M/s. REIL Products Limited (in liquidation) for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 27.05.2025, as submitted by the Official Liquidator. The Official Liquidator argued for the acceptance of these documents to facilitate the ongoing 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, M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator contended that this payment is necessary for the services rendered by the auditors in preparing the report. 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 upon realization of assets. The Official Liquidator submitted that these costs are incidental to the liquidation proceedings.