M/S. Ranka Cables Limited.(In Lign.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed Company Application No. 28 of 2025 in R.C.C. No. 11 of 1999 concerning M/s Ranka Cables 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 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 Auditors' Report dated 01.11.2024 submitted by M/s KBS and Associates. The Official Liquidator also sought permission to make a payment of Rs. 500/- plus GST to the auditor for their services and to meet the cost of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and argued by the Official Liquidator's counsel.

Held

The Court accepted the prayer of the Official Liquidator. It ordered that the half-yearly accounts of M/s Ranka Cables Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditors' Report submitted by M/s KBS and Associates, be taken on record. The Court also implicitly granted permission for the payment of the audit fee of Rs. 500/- plus GST, as it was part of the prayer for which the accounts were taken on record and the application was ordered accordingly. The Court further permitted the cost of the application to be met out by the Official Liquidator from the available funds of the company (in liquidation) or the Estate and Establishment Fund account if no funds were available in the company's account. The reasoning was based on the perusal of the Auditors' Report with the assistance of the counsel for the Official Liquidator, and the application was ordered accordingly. No issues were expressly left undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the Auditors' Report of M/s Ranka Cables Limited (in liquidation) for the period 01.10.2022 to 31.03.2023. (Question of procedure). 2. Whether permission should be granted to make the payment of audit fee of Rs. 500/- plus GST to M/s KBS and Associates. (Question of procedure and financial approval). 3. Whether the cost of the application can be met from the available funds of the company or the Estate and Establishment Fund. (Question of financial approval). Contentions: Petitioner (Official Liquidator): Argued for the acceptance of the half-yearly accounts and the Auditors' Report, and for permission to make the payment of audit fees and application costs from the available funds, as per the provisions of the Companies Act and Rules. The counsel for the Official Liquidator presented the application and argued for its acceptance. Revenue/State: No arguments were recorded from the Revenue or State in the judgment.