M/S.Vaishu Engineering Industries Limited (In Liqn) vs. No Respondent
Facts
This case involves a Company Application filed by the Official Liquidator of M/s Srivaishnavi Spinning Industries Limited (in liquidation) before the High Court of Telangana. The application sought permission to take on record the half-yearly accounts of the company for the period 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 31.05.2025 submitted by M/s KBS & Associates. The Official Liquidator also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors. The application further requested permission to meet these costs from the available funds of the company in liquidation, or from the Estate and Establishment Fund if company funds were unavailable, subject to reimbursement upon realization of company assets. The Official Liquidator presented the Judge's summons and supporting affidavit, and arguments were heard from the advocate for the Official Liquidator.
Held
The Court held that the application was satisfied with the reasons presented in the supporting affidavit and upon considering the half-yearly accounts filed by the Official Liquidator. Consequently, the Court ordered as follows: (a) The half-yearly accounts of the company in liquidation for the period 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 31.05.2025 submitted by M/s KBS & Associates, are taken on record. (b) Permission is accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the 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 from the funds of the Company (in liquidation) upon realization of assets. The ratio decidendi is that the Court will grant permission for necessary expenses related to the liquidation process, such as audit fees, upon satisfaction with the supporting documentation and justification provided by the Official Liquidator.
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 Auditor's Report dated 31.05.2025, 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 permission should be granted to the Official Liquidator to utilize the company's available funds or the Estate and Establishment Fund for the payment of audit fees, subject to reimbursement. The petitioner, the Official Liquidator, argued that the application was supported by the reasons mentioned in the affidavit and the filed accounts. The revenue or State did not record any arguments in the judgment.
Sections Cited
Companies Act, 1956, Rule 295, Rule 306
AI-generated summary — verify with the full judgment below
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ApplicationUnderSection462ofCompaniesAct,lg56readwithRule29S and Rule 306 0f the companies (court) Rures 1g5g praying that this Hon'ble court *"1.0"':ilT: har-vearll:::o"'nts or the t-'!l::t companv (in'liquidation) for the p",ioo irt* o, .o,.iiii; .:. * iizoi;..;ffig .i11 ^tlo.pendent Auditors, Report dated ii.oszois suom''rtied-o-n "og 06,025 by M/s KBs. & Associates, cna'rt"rJ rc"orntrni'*-Jn recorO an-d oermission may be acioroeo to ,rr".tnJiivr";, ot .ioir'i"""li'nr.sool'- prus GST to the said auditor' I ii.costofthisapplication(CourtfeeStampsandNotaryChargesetc.,)may be permiued io be met ;;';;,h;-oni"i'i'riquio'qtp,"the available funds of the company r,,l'iioriori,gi-.r =ttate ano Establishment Fund account if no fund i, "rriirnr" in in" .o*prny't "1t-9yll' subject to reimbursement of the .;;;i;r the funds'of company (in liqn) upon r."atir"ii
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