M/S. Padamaja Ventures Limited.(In Liqn.) vs. No Respondent

Facts

This matter concerns Company Application No. 6 of 2025, filed by the Assistant Official Liquidator for M/s. Padmaja Ventures Limited (in liquidation). The application was filed 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 the company for the period 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 sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors and to meet the cost of the application from the company's funds or the Estate and Establishment Fund. The application was heard on 24/01/2025.

Held

The Court accepted the prayer made in the Company Application. The half-yearly accounts of M/s. Padmaja Ventures Limited (in liquidation) for the period 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, were taken on record. The Court ordered accordingly, implying that the payment of audit fees and costs would be permitted as sought in the application, subject to the availability of funds as stated. The Court did not expressly leave any issues undecided. The ratio of the decision is that the High Court, in its company jurisdiction, will facilitate the proper administration of companies in liquidation by taking on record necessary financial documents and approving incidental expenses like audit fees and application costs when properly presented by the Official Liquidator.

Key Issues

1. Whether the half-yearly accounts and the Auditors' Report of the company in liquidation for the period 01/10/2022 to 31/03/2023, submitted by M/s. KBS and Associates, should be taken on record by the Court? (Question of procedure) 2. Whether permission should be granted to pay the audit fee of Rs. 500/- plus GST to the auditors? 3. Whether the costs of the application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund? Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the Auditors' Report for the specified period. The application sought the Court's approval to formally record these documents and to permit the payment of the audit fee and application costs. No specific arguments were recorded for the revenue or State, as this was an application by the Official Liquidator concerning the administration of a company in liquidation.