M/S. Pec Electrical PVT. , Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application (No. 46 of 2024) under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought to take on record the half-yearly accounts of M/s. PEC Electrical Pvt., Limited (in liquidation) 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 sought permission to pay the audit fee of Rs. 500/- plus GST to the auditor and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and argued by the counsel for the Official Liquidator.

Held

The Court considered the application filed by the Official Liquidator, which sought to take on record the half-yearly accounts and Auditors' Report of M/s. PEC Electrical Pvt., Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022. The Court perused the Auditors' Reports with the assistance of the learned counsel for the Official Liquidator. The Court found the application to be in order and accepted the prayer. Consequently, the half-yearly accounts and the Auditors' Reports were taken on file. The application was ordered accordingly. The specific issue of the GST component of the audit fee was implicitly approved as part of the overall permission to pay the audit fee. No issues were expressly left undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and Auditors' Report of the company in liquidation for the period 01.04.2022 to 30.09.2022, as submitted by the Official Liquidator. 2. Whether permission should be granted to pay the audit fee of Rs. 500/- plus GST to the auditor, M/s. KBS and Associates. Contentions: Petitioner (Official Liquidator): The Official Liquidator, through their counsel, presented the half-yearly accounts and Auditors' Report for the specified period and sought the Court's approval to record these documents. They also requested permission to disburse the audit fee, including GST, and to cover the application costs from available company funds or the Estate and Establishment Fund, as per the provisions of the Companies Act and Rules. Revenue/State: No arguments were recorded from the Revenue or State in this matter.