M/S.Godvari Plywood Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Godavari Plywood Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023. The application also sought permission to make payment of an audit fee of Rs. 500/- plus GST to the Independent Auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The applicant further prayed that the cost of the application be permitted to be met from the available funds of the company in liquidation or the Estate and Establishment Fund account if company funds were unavailable. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959.

Held

The Court, having perused the auditor's report dated 13.12.2024 with the assistance of the learned counsel for the Official Liquidator and being satisfied, took the same on record. Consequently, the application was allowed. The Court accorded permission to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The costs of the application were directed to be met from the available funds of the company (in liquidation). The Court also stated that there shall be no order as to costs. Any pending miscellaneous petitions in the Company Application were ordered to stand closed.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report, as required by Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. 2. Whether permission should be granted to the Official Liquidator to make payment of the audit fee of Rs. 500/- plus GST to the auditors. 3. Whether the costs of the application should be permitted to be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund account. Contentions: Petitioner (Official Liquidator): The Official Liquidator presented the application with the supporting affidavit and auditor's report, seeking the Court's approval for the accounts and payment of audit fees. The counsel for the Official Liquidator argued for the allowance of the application. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.