M/S. Preyanshu Industries 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. 27 of 2025. This application was made under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The Official Liquidator sought to take on record the half-yearly accounts of M/s. Preyanshu Industries Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Auditors' Report dated 01.11.2024 submitted by M/s. KBS and Associates, Chartered Accountants. The application also prayed for permission to make the payment of audit fee of Rs. 500/- plus GST to the auditor and to meet the cost of the application from the company's funds or the Estate and Establishment Fund.

Held

The Court held that the prayer made by the Official Liquidator was accepted. The half-yearly accounts and the auditors' report of M/s. Preyanshu Industries Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023 were taken on file. The Court found that the application was in order and complied with the requirements of Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. The reasoning was based on the perusal of the auditors' report with the assistance of the counsel for the Official Liquidator. The operative direction was that the Company Application is ordered accordingly, implying the acceptance of all prayers made therein, including the taking on record of the accounts and report, and implicitly permitting the payment of audit fees and costs as sought.

Key Issues

1. Whether the half-yearly accounts and the auditors' report of M/s. Preyanshu Industries Limited (in liquidation) for the period 01.10.2022 to 31.03.2023 should be taken on record by the Court, as prayed by the Official Liquidator under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959? The Petitioner (Official Liquidator) argued that the application was filed in accordance with the relevant provisions of the Companies Act and Rules, seeking judicial approval to record the company's financial statements and the auditor's findings. The Petitioner relied on the affidavit filed in support of the application and the arguments presented by their counsel. The Revenue or State did not appear to have made any arguments in this matter, as the judgment records only the arguments of the Official Liquidator.