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

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s Sirsilk Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. KBS and Associates, Chartered Accountants, whose report was submitted on June 9, 2025. The Official Liquidator further 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 M/s Sirsilk Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the auditor's report dated May 31, 2025, submitted on June 9, 2025, by M/s. KBS & Associates, Chartered Accountants, should be taken on record. The Court also granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. 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 if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The reasoning was based on the satisfaction with the reasons mentioned in the supporting affidavit and consideration of the filed half-yearly accounts.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period April 1, 2023, to September 30, 2023, along with the auditor's report, should be taken on record? 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of 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? The petitioner, the Official Liquidator, argued for the approval of the accounts, the payment of audit fees, and the utilization of funds for application costs. The revenue or State did not appear to have made any specific arguments recorded in the judgment, as the matter was decided based on the Official Liquidator's application and affidavit.