M/S. Ontime Pharma Limited vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Ontime Pharma Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022. The application also sought permission to make a payment of Rs. 500 plus GST to the auditor, M/s. KBS and Associates, Chartered Accountants, for their report dated June 17, 2024, submitted on June 20, 2024. Additionally, the Official Liquidator requested permission to meet the costs of the application, including court fees and notary charges, from the company's funds or the Estate and Establishment Fund if company funds were unavailable. The application was supported by an affidavit dated September 23, 2024.

Held

The Court accepted the prayer of the Official Liquidator. It ordered that the half-yearly accounts of M/s. Ontime Pharma 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 & Associates, Chartered Accountants, be taken on record. The Court also ordered that the Company Application be disposed of accordingly. The specific details regarding the payment of audit fees and the meeting of application costs were implicitly approved by the general order of disposal, as the primary prayer to take the accounts and report on record was granted. The reasoning was based on the perusal of the auditor's reports with the assistance of the learned counsel for the Official Liquidator, leading to the acceptance of the prayer.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the auditor's report for M/s. Ontime Pharma Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022, as submitted by the Official Liquidator. This issue turns on the procedural requirements for liquidations under the Companies Act, 1956, and the Companies (Court) Rules, 1959. 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fees, including GST, to the auditor. 3. Whether the costs associated with the Company Application should be permitted to be met from the company's funds or the Estate and Establishment Fund. Contentions: Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and auditor's report for the specified period and sought the Court's approval to take them on record. The Official Liquidator also sought permission for the payment of audit fees and the reimbursement of application costs. No specific arguments were recorded beyond the prayers in the application.