In The Matter Of M/S. Ge Godavari Engineering 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 permission to take on record the half-yearly accounts of M/s G.E. Godavari Engineering Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023. The application also prayed for permission to pay an audit fee of Rs. 500/- plus GST to M/s Murthy & Kanth Chartered Accountants, the independent auditors. The Official Liquidator further requested 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 High Court.

Held

The Court, having satisfied with the reasons mentioned in the supporting affidavit and considering the half-yearly accounts filed by the Official Liquidator, ordered the Company Application. Specifically, the Court took on record the half-yearly accounts of the subject Company for the period from 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 04.07.2025 submitted by M/s Murthy & Kanth, Chartered Accountants. Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Furthermore, permission was granted to make this 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 funds of the Company (in liquidation) upon realization of its assets. The ratio decidendi is that the Court will grant necessary permissions for the proper winding up and administration of a company in liquidation, provided the applications are supported by adequate reasons and comply with relevant statutory provisions.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 04.07.2025. 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 available funds of the company or the Estate and Establishment Fund, subject to reimbursement. The petitioner (Official Liquidator) argued that the application was made under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959, and that the reasons mentioned in the supporting affidavit justified the prayers. The revenue or State did not appear to have filed any specific arguments or objections in this matter, as the judgment primarily records the arguments of the Official Liquidator.