M/S.Midwest (I) Industries Limited.(In Liqn) vs. No Respondent

Facts

This matter concerns Company Application No. 91 of 2024, filed by the Official Liquidator attached to the High Court of Telangana and Andhra Pradesh. The application was made 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 have the half-yearly accounts of M/s. Midwest (I) Industries Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022, taken on record. These accounts were accompanied by an Auditor's Report dated June 17, 2024, submitted by M/s. KBS and Associates, Chartered Accountants. The Official Liquidator also requested permission to pay an audit fee of Rs. 500 plus GST to the auditors and to meet the costs of the application from the company's funds or the Estate and Establishment Fund.

Held

The Court held that the prayer made by the Official Liquidator in the Company Application is accepted. The half-yearly accounts of M/s. Midwest (I) Industries Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022, along with the Auditor's Report submitted by M/s. KBS and Associates, Chartered Accountants, were taken on file. The Court also implicitly granted permission for the payment of the audit fee of Rs. 500 plus GST by ordering the application accordingly. The reasoning was based on the Official Liquidator's submission and the perusal of the Auditor's Reports by the Court with the assistance of the learned counsel. The ratio decidendi is that procedural applications by the Official Liquidator for the proper administration of a company in liquidation, including the filing of accounts and payment of associated professional fees, are to be granted upon satisfaction of the statutory requirements and perusal of the submitted documents.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the Auditor's Report for M/s. Midwest (I) Industries Limited (in liquidation) for the period April 1, 2022, to September 30, 2022, as submitted by the Official Liquidator. 2. Whether permission should be granted to pay 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 relevant provisions of the Companies Act and Rules, seeking the Court's approval for the routine filing of accounts and payment of professional fees. The Official Liquidator contended that these steps are necessary for the proper winding up of the company. The judgment does not record any specific arguments from the revenue or State, as this is a procedural application by the Official Liquidator concerning a company in liquidation, not a dispute involving tax authorities.