In The Matter Of M/S.Godvari Plywood 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 Godavari Plywood Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023. The application also sought permission to make payment of an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. Murthy and Kanth, Chartered Accountants, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having been satisfied with the reasons mentioned in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered the application. Specifically, the Court took on record the half-yearly accounts for the period 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 27.05.2025. Permission was granted 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, subject to reimbursement from the company's funds upon realization of its assets. The Court did not expressly leave any issues undecided.

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. 2. Whether permission should be granted to make the payment of audit fee of Rs. 500/- plus GST to the auditor. 3. Whether the costs of the application can be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund account. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditor's report and sought the Court's approval for the same. He also requested permission to pay the audit fee and meet the application costs from the company's funds, as detailed in the supporting affidavit. The Official Liquidator relied on the Companies Act, 1956, and the Companies (Court) Rules, 1959, for the procedural aspects of the application. Arguments for the Revenue/State: The judgment does not record any specific arguments made by the revenue or state authorities in opposition to this application.