M/S.Bimetallic Steel And Alloys Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed Company Application No. 65 of 2025. The application sought to take on record the half-yearly accounts of M/s. Bimetallic Steel and Alloys Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024. The Official Liquidator also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. Additionally, permission was requested to meet the costs of the application from the company's available funds or the Estate and Establishment Fund if company funds were insufficient. 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 held that the half-yearly accounts of M/s. Bimetallic Steel and Alloys Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024, should be taken on record. The Court found the auditors' report satisfactory after perusing it with the assistance of the Official Liquidator's counsel. Consequently, permission was accorded to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The Court also directed that the cost of the application be met from the available funds of the Company (in liquidation). The judgment did not expressly leave any issue undecided. The ratio decidendi is that when the Official Liquidator presents satisfactory accounts and auditor's reports for a company in liquidation, and seeks approval for associated expenses like audit fees, the Court will grant such approval to facilitate the liquidation process.

Key Issues

1. Whether 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 dated 13.12.2024, should be taken on record by the Court? (Question of procedure/administration) 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? (Question of financial approval) Petitioner's Arguments: The Official Liquidator, through their counsel, argued that the auditors' report had been perused and found satisfactory. They sought the Court's approval to record the accounts and pay the audit fee, including GST, as per the application. The Official Liquidator also requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund. Revenue/State's Arguments: No specific arguments were recorded for the revenue or state in the provided judgment. The matter proceeded based on the Official Liquidator's application and the Court's perusal of the documents.