M/S. Pratyankara Electronics PVT. Limited.(In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed Company Application No. 12 of 2025. This application, filed under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959, sought to take on record the half-yearly accounts of M/s. Pratyankara Electronics Pvt. Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023. The application also requested permission to pay an audit fee of Rs. 500 plus GST to the auditor, M/s. KBS and Associates, Chartered Accountants, 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 argued by the Official Liquidator's counsel.

Held

The Court accepted the prayer made by the Official Liquidator. The half-yearly accounts of M/s. Pratyankara Electronics Pvt. Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the auditor's report dated 01.11.2024 submitted by M/s. KBS and Associates, Chartered Accountants, were taken on record. The Court also implicitly granted permission for the payment of the audit fee of Rs. 500 plus GST and the costs of the application, as the application was ordered accordingly. The reasoning was based on the Official Liquidator's duty to present these accounts and reports to the Court for its perusal and record, as mandated by the Companies Act and Rules. The ratio decidendi is that the High Court, in its supervisory role over companies in liquidation, will facilitate the necessary procedural steps for the proper administration of the liquidation process, including the acceptance of accounts and auditor's reports and the payment of associated fees.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the auditor's 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, under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959? Petitioner's Contention: The Official Liquidator, representing the company in liquidation, argued for the acceptance of the half-yearly accounts and the auditor's report, and sought permission for the payment of audit fees and application costs. The Official Liquidator relied on the provisions of the Companies Act, 1956, and the Companies (Court) Rules, 1959, to support the application. Revenue/State's Contention: No specific arguments were recorded for the revenue or state in the provided judgment.