M/S.Asia Pacific Investment Trust Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. Asia Pacific Investment Trust Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to M/s. KBS & Associates, Chartered Accountants, for their report dated January 12, 2026, submitted on January 22, 2026. Additionally, the Official Liquidator requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.

Held

The Court held that the half-yearly accounts of the subject company, which is in liquidation, for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, submitted on January 22, 2026, by M/s. KBS & Associates, Chartered Accountants, are to be taken on record. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Furthermore, permission was accorded to the Official Liquidator to make the said payment from the available funds of the Company (in liquidation), or from the Estate and Establishment Fund account if no funds were available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court found merit in the reasons stated in the accompanying affidavit and considered the filed accounts.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026, should be taken on record. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditor. 3. Whether the costs of the application can be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The Official Liquidator argued for the acceptance of the accounts, the payment of audit fees, and the permission to utilize available funds for application costs, citing the necessity of these actions for the proper winding up of the company. The judgment does not record any arguments from the revenue or state.