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

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s Vara Vara Chits Limited (in liquidation) for the period 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, KBS & Associates. The Official Liquidator further requested permission to meet the costs of the application, including court fees and notary charges, 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 held that the half-yearly accounts of M/s Vara Vara Chits Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 31.05.2025 submitted by 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 auditor. 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 account if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court was satisfied with the reasons mentioned in the supporting affidavit and considered the filed accounts.

Key Issues

1. Whether 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 31.05.2025, should be taken on record by the Court. 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 meet the costs of the application from available funds, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditor's report, seeking their formal acceptance by the Court. He also requested authorization to pay the audit fee and cover the application costs from company funds, with a provision for reimbursement. Arguments for the Revenue/State: The judgment does not record any specific arguments from the revenue or state authorities regarding these issues.