M/S.Bull Power Systems Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Bull Power Systems Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022. The application also sought permission to pay an audit fee of Rs. 500/- plus GST, along with the costs of the application and any miscellaneous expenses, to be met from the company's available funds or the Estate and Establishment Fund Account. The application was supported by an affidavit and heard by the High Court.

Held

The Court accepted the prayer made in the Company Application. It ordered that the half-yearly accounts of M/s. Bull Power Systems Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022, along with the Auditor's Report submitted by M/s. Padmanabha Rao and Co., Chartered Accountants, be taken on record. The Court also permitted the payment of the audit fee of Rs. 500/- plus GST, and any miscellaneous expenses, to be met from the available funds of the company in liquidation or the Estate and Establishment Fund Account. The reasoning provided is that the application was filed under the relevant provisions of the Companies Act and Rules, and the prayer was found to be in order.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.04.2022 to 30.09.2022, along with the Auditor's Report dated 12.06.2024, should be taken on record by the Court, as per Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959? Petitioner's Argument: The Official Liquidator, representing the company in liquidation, argued for the acceptance of the accounts and the Auditor's Report, and sought permission for the payment of audit fees and associated expenses. Revenue's Argument: The judgment does not record any specific arguments from the revenue or state.