M/S.Gsn Ferro Alloys (P) Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application (CA No. 81 of 2024) in the matter of M/s GSN Ferro Alloys (P) Limited (in liquidation). The application, filed under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959, sought to take on record the half-yearly accounts of the company for the period 01.04.2022 to 30.09.2022, along with the Auditor's Report dated 12.06.2024 submitted by M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator also sought permission to pay the audit fee of Rs. 500/- plus GST and any miscellaneous expenses from the company's funds or the Estate and Establishment Fund Account. The application was supported by an affidavit and argued by the Official Liquidator's counsel.

Held

The Court considered the Company Application filed by the Official Liquidator, which sought to take on record the half-yearly accounts of M/s. GSN Ferro Alloys (P) Limited (in liquidation) for the period 01.04.2022 to 30.09.2022, along with the Auditor's Report. The Court, after perusing the Auditor's Reports with the assistance of the learned counsel for the Official Liquidator, found the prayer to be acceptable. Consequently, the Court ordered that the half-yearly accounts and the Auditor's Reports be taken on file. The application was thus ordered accordingly. The Court did not expressly leave any issue undecided. The ratio decidendi is that the High Court, in its company jurisdiction, will approve and record the accounts and reports of a company in liquidation when presented by the Official Liquidator, provided they are in order and supported by the auditor's findings, and will permit necessary expenses related to such filings.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the Auditor's Report for the period 01.04.2022 to 30.09.2022, as submitted by the Official Liquidator for M/s. GSN Ferro Alloys (P) Limited (in liquidation)? 2. Whether permission should be granted to pay the audit fee of Rs. 500/- plus GST and other miscellaneous expenses from the company's funds or the Estate and Establishment Fund Account? Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through their counsel, presented the half-yearly accounts and the Auditor's Report for the specified period. They sought the Court's approval to formally record these documents and to permit the payment of associated audit fees and expenses, as per the statutory provisions and rules governing companies in liquidation. The application was made to ensure proper accounting and administrative procedures were followed. Arguments for the Revenue/State: No arguments were recorded for the Revenue or State in this judgment.