M/S. Neeraj Petrochemicals Limited(In Liqn.) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Neeraj Petrochemicals Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023. The application also sought permission to make payment of audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates, Chartered Accountants. The auditors' report was submitted on 05.11.2024. The Official Liquidator also prayed for the costs of the application to be met from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and argued by the counsel for the Official Liquidator.
Held
The Court accepted the prayer of the Official Liquidator. The half-yearly accounts and the auditors' report of M/s. KBS & Associates, Chartered Accountants, for the period 01.10.2022 to 31.03.2023, were taken on record. The Court also implicitly granted permission for the payment of the audit fee, as it ordered the application accordingly, which included the prayer for audit fee payment. The ratio decidendi is that the Court will facilitate the proper winding up of companies by taking on record necessary financial documents and permitting reasonable expenses like audit fees, as per the relevant provisions of the Companies Act and Rules. The Court ordered the Company Application accordingly.
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 the Official Liquidator? 2. Whether permission should be granted to the Official Liquidator to make payment of the audit fee of Rs. 500/- plus GST to the auditors? The petitioner, the Official Liquidator, argued that the application was filed in accordance with the Companies Act, 1956, and the Companies (Court) Rules, 1959, to ensure proper accounting and oversight of the company in liquidation. The revenue or State did not appear to have made any specific arguments recorded in the judgment, as the matter was presented by the Official Liquidator for the Court's order.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3166 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE FOURTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENW FIVE PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR COMPANY APPLICATION No. 30 of 2025 IN COMPANY PETITION NO: 68 of 1994 & RCC No. 11 of 2000 ln the mafter of the Companies Act, 1956 And ln the matter of M/s. Neeraj Petrochemicals Limited (ln Liqn.)
Between: The Official Liquidator, attached to the Honble High Court of Telangana, and Andhra Pradesh, '1st floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad -500068 ...Applicant Application Under Section 462 of the Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules, '1959) praying that this Hon'ble Court may be pleased to. i) take the half-yearly accounts of the subject company (in liquidation) for the period from 0'l .10.2022 to 31 .O3.2O23, along with Auditors' Report dated 01.11.2024 submitted on 05.11.2024 by M/s. KBS and Associates., Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. cost of this application (Court tee Stamps and Notary Charges etc..) may be permitted to be met o
The judgment continues below.
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