M/S. Global Drugs (P) Limited (In Liqn. ) vs. No Respondent
Facts
This matter concerns a Company Application filed by the Official Liquidator of M/s. Global Drugs (P) Limited (in liquidation). The Official Liquidator sought permission from the High Court to take on record the Half-Yearly Accounts of the company, along with the Auditors' Reports from M/s. Padmanabha Rao and Co., Chartered Accountants. The application also requested permission to debit the audit fee of Rs. 500/- plus GST and other miscellaneous expenses from the company's available funds or, if insufficient, from the 'Common Cause, Trust and Establishment Fund Account'. The application was supported by an affidavit filed by the Official Liquidator. The Court perused the Auditors' Reports with the assistance of the counsel for the Official Liquidator.
Held
The Court accepted the prayer made by the Official Liquidator. The Half-Yearly Accounts and the Auditors' Reports of M/s. Global Drugs (P) Limited (in liquidation) were taken on file. The Court also ordered the Company Application accordingly, implying that the permission to debit the audit fee and miscellaneous expenses from the company's funds, as sought by the Official Liquidator, was implicitly granted by the order. The ratio decidendi is that the High Court, exercising its powers under the Companies Act and Rules, can direct the taking on record of liquidation accounts and grant necessary permissions for expenses related to the liquidation process upon due perusal and satisfaction.
Key Issues
1. Whether the Half-Yearly Accounts and Auditors' Reports of M/s. Global Drugs (P) Limited (in liquidation) should be taken on record by the Court, as prayed for by the Official Liquidator under Section 462 of the Companies Act, 1956 read with Rules 298 and 306 of the Companies (Court) Rules, 1959. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the Half-Yearly Accounts and Auditors' Reports for the Court's perusal and sought their formal acceptance on record. The Official Liquidator also sought permission to debit the audit fees and miscellaneous expenses from the company's funds. Arguments for the Revenue/State: The judgment does not record any specific arguments made by the Revenue or State in this matter.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
t 3405l IN THE HIGH COURTFOR THREASTATE OF TELANGANA FRTDAY,-rHErrysEINglllJiRlIf.Irootlo"=* ln the matter of the Companies Act' '1956 ln the Matter of M/s' Global Drugs (P) Limited (ln liqn)'
The Official Liquidator' attached to the Honble High- Court of Telangana' and Andhra Pradesh, 1 st floor' 3:j;;t;i"'il'*inl a"noi"g'da' Nasole' Hvderabad - PRESENT R.c.c No: 1ot2OO4 500068 upon hearing the arguments of Sri J Liquidator for the APPlicant. THE HONOURABLE JUSTICE MOUSHUMI BHATTACHARYA Application under Section 462 of the Companies Act' 1956 read with Rule 2e8 and Rure 306 "r th" ;fi;:;[TtitJ*l iui"i' rsssl pravins that this Hon'ble Court may be Pleased to: i) take the harr- *1\,t :;"i}i:]:'Ji:#'i'ru"jiy#Li'[ iHfii$)g:T [iJo"i';"[:T'?ist;;fi ;',*:9:'i:^l'^;*';:x1[ffi o#,*i" and Co , Cf'arte'J nccountants on 'record ind permission may be accorded to rn'r5til O"rn"'t of audit fee of Rs 500/- plus GST' ii) cost of trti" 'p"'ri"Itili and any -miscellaneous expenses may be permitted to o" o']lli'J" 6yin" bri""r I iouidator from the available funds of tn" "ornp'"nYiin thuiOatron) o:::i'i" and Establishment Fund Account 'r no t'n5f, l*ilabje in the company's account'
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