M/S.Enso Secutrack Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana, filed Company Application No. 295 of 2025. The application sought permission to take on record the half-yearly accounts of M/s. Enso Secutrack Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024. It also requested permission to pay an audit fee of Rs. 500 plus GST to the independent auditors, M/s. Murthy and Kanth, Chartered Accountants. Furthermore, the Official Liquidator sought permission to meet the costs of the application from the company's available 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 Court.

Held

The Court, being satisfied with the reasons mentioned in the supporting affidavit and upon considering the half-yearly accounts filed by the Official Liquidator, ordered as follows: (a) The half-yearly accounts of the subject Company (in liquidation) for the period from October 1, 2023, to March 31, 2024, along with the Auditor's Report dated July 4, 2025, submitted on August 8, 2025, by M/s. Murthy and Kanth, Chartered Accountants, are taken on record. (b) Permission is accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the said Auditor. (c) Permission is also 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 fund is available in the Company's account, subject to reimbursement of the same from the funds of the Company (in liquidation) upon realization of its assets. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from October 1, 2023, to March 31, 2024, along with the Independent Auditors' Report dated July 4, 2025. 2. Whether permission should be granted to the Official Liquidator to make payment of audit fees amounting to Rs. 500 plus GST to the auditors. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator argued that the application was supported by a detailed affidavit and the auditors' report. The request for payment of audit fees and application costs was made to facilitate the liquidation process and was in line with established procedures. The petitioner relied on the provisions of the Companies Act, 1956, and the Companies (Court) Rules, 1959, for seeking these permissions. Revenue/State: No specific arguments were recorded from the Revenue or State in the judgment.