The Official Liquidator vs. No Respondent
Facts
The Official Liquidator of M/s. Bull Power Systems Limited (in liquidation) filed a Company Application before the High Court for the State of Telangana. The application sought to take on record the half-yearly accounts of the company for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024. Additionally, the Official Liquidator requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The application also sought permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund. The Court perused the auditors' report with the assistance of the counsel for the Official Liquidator.
Held
The Court held that the application was allowed. It took on record the half-yearly accounts of M/s. Bull Power Systems Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024. Permission was accorded to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The cost of the application was also permitted to be met from the available funds of the company in liquidation. The Court noted that the auditors' report was perused and found satisfactory. The ratio decidendi is that statutory compliance in filing accounts and paying professional fees in liquidation proceedings should be facilitated by the Court when the requirements are met and the reports are satisfactory. No specific GST provisions were discussed or relied upon, other than the mention of GST in the audit fee.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of M/s. Bull Power Systems Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024, as required under 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 the payment of audit fee of Rs. 500/- plus GST to the auditors. Contentions: Petitioner (Official Liquidator): Argued for the acceptance of the accounts and the auditors' report, and for permission to pay the audit fee and associated costs, as detailed in the application filed under the relevant provisions of the Companies Act, 1956 and Companies (Court) Rules, 1959. Revenue/State: No arguments were recorded for the revenue or State in the judgment.
Sections Cited
Section 462, Rule 298, Rule 306
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Cause title — parties, addresses and appearances
take the half-yearly accounts of the subject company (in liquidation) for the period from 0111012
The judgment continues below.
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Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.