M/S. Sunrise Oleo Chemicals Limited(In Liqn) vs. Nil

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 Sunrise Oleo Chemicals 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. 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 been satisfied with the reasons stated in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered as follows: a) The half-yearly accounts of M/s Sunrise Oleo Chemicals Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Auditor's Report dated May 31, 2025, were taken on record. b) Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. c) Permission was also granted 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 funds of the Company (in liquidation) upon realization of its assets. The Court found no impediment to granting the reliefs sought by the Official Liquidator.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated May 31, 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 company's funds or the Estate and Establishment Fund, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and the auditor's report, seeking the Court's approval to record them. The Official Liquidator also requested permission to pay the audit fee and cover the application costs, providing reasons in the supporting affidavit. The Official Liquidator relied on the established procedures for managing companies in liquidation. Arguments for the Revenue/State: The judgment does not record any specific arguments from the Revenue or State. The Court proceeded to pass an order based on the application and the arguments presented by the Official Liquidator.