M/S. Paramount Agencies Private 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 (CA No. 13 of 2025) under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought to take on record the half-yearly accounts of M/s. Paramount Agencies Private 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 Official Liquidator also prayed for permission to make payment of audit fee of Rs. 500/- plus GST to the auditor and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and heard by the High Court.

Held

The Court considered the application filed by the Official Liquidator. After perusing the Auditors' Report with the assistance of the counsel for the Official Liquidator, the Court found the prayer to be acceptable. The Court held that the half-yearly accounts and the auditors' report are to be taken on file. The Court's reasoning appears to be based on the routine procedural requirement of filing and recording such documents in liquidation proceedings. The ratio decidendi is that the High Court, in its supervisory role over companies in liquidation, will accept and record duly submitted financial statements and auditor's reports as per the prescribed rules. The operative direction was that the Company Application is ordered accordingly, signifying the acceptance of the Official Liquidator's prayers.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the Auditors' Report of the company in liquidation for the period 01.10.2022 to 31.03.2023, as submitted by M/s. KBS and Associates, Chartered Accountants. This issue turns on the procedural requirements for winding up proceedings under the Companies Act, 1956 and the Companies (Court) Rules, 1959. Contentions of the Petitioner (Official Liquidator): The Official Liquidator, through his counsel Sri J. Sreenath Reddy, argued that the application was filed in accordance with the relevant provisions of the Companies Act and Rules. The prayer was to formally place the accounts and the auditor's report on record and to permit the payment of audit fees and application costs. Contentions of the Revenue/State: The judgment does not record any specific arguments or contentions from the Revenue or State in this matter.