M/S. Safe Pack Polymers Limited.(In Liqn). vs. No Respondent

Facts

The Official Liquidator of M/s. Safe Pack Polymers Limited (in liquidation) filed a Company Application before the Telangana High Court. The application sought to take on record the half-yearly accounts of the company for the period from April 1, 2022, to September 30, 2022, along with the Auditors' Report dated June 17, 2024, submitted by M/s. KBS and Associates. The Official Liquidator also requested permission to pay the audit fee of Rs. 500 plus GST to the auditors. Additionally, the application sought permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund if company funds were insufficient. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959.

Held

The Court accepted the prayer made by the Official Liquidator. It ordered that the half-yearly accounts of M/s. Safe Pack Polymers Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022, along with the Auditors' Report submitted by M/s. KBS and Associates, be taken on record. The Court also implicitly granted permission for the payment of the audit fee by accepting the application which included this request. The reasoning appears to be based on the routine procedural necessity of approving such accounts and reports to facilitate the orderly liquidation of the company. The Court's decision is a procedural one, ensuring that the liquidation process can continue with proper oversight and documentation. No specific issues regarding GST were decided as the primary focus was on the company's liquidation accounts and audit.

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 April 1, 2022, to September 30, 2022? (Question of fact and procedure, turning on the Court's supervisory role over companies in liquidation). 2. Whether permission should be granted to the Official Liquidator to pay the audit fee of Rs. 500 plus GST to the auditors? (Question of fact and procedure, turning on the Official Liquidator's powers and the necessity of audit fees). Petitioner's Contentions (Official Liquidator): The Official Liquidator, through their counsel, presented the half-yearly accounts and the Auditors' Report for the specified period. They sought the Court's approval to place these documents on record and requested permission to disburse the audit fee, which is a necessary expense for the liquidation process. The application was made in accordance with the relevant provisions of the Companies Act and Rules. Revenue/State Contentions: The judgment does not record any specific contentions from the revenue or state authorities. The matter proceeded based on the application filed by the Official Liquidator.