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

Held

The Court, being satisfied with the reasons provided in the supporting affidavit and having considered the half-yearly accounts, ordered the Company Application. Specifically, the Court took on record the half-yearly accounts of M/s Bull Power Systems Limited for the period 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 04.07.2025. Permission was granted to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors. Furthermore, the Court permitted the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if the company's account was depleted. This permission was granted with the condition that the amount would be reimbursed from the company's funds upon the realization of its assets. No issues were expressly left undecided.

Facts

The Official Liquidator of M/s Bull Power Systems Limited (in liquidation) filed a Company Application before the High Court of Telangana. The application sought permission to take on record the half-yearly accounts for the period 01.10.2023 to 31.03.2024, along with the Independent Auditor's Report dated 04.07.2025. Crucially, the application also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy & Kanth, Chartered Accountants. The Official Liquidator further sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon asset realization. The application was supported by an affidavit and argued by the Official Liquidator's counsel.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.10.2023 to 31.03.2024, along with the Independent Auditor's Report dated 04.07.2025, should be taken on record? (Question of procedure) 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors? (Question of financial approval) 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? (Question of expenditure approval) Petitioner (Official Liquidator) Arguments: The Official Liquidator, through their counsel, presented the half-yearly accounts and auditor's report, indicating their completeness and accuracy. They sought approval for the payment of the audit fee, which is a necessary expense for the liquidation process. They also requested flexibility in meeting the application costs from available funds, ensuring eventual reimbursement from company assets. The judgment does not record any arguments from the revenue or state.