M/S. Visveswara Finance And Chit Funds Limited(In Liqn) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s Visveswara Finance and Chit Funds Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023. The application also prayed for 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 sought permission to meet the costs of the application from the company's 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 Visveswara Finance and Chit Funds Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditors Report dated 31.05.2025 submitted by M/s KBS & Associates, Chartered Accountants, should be taken on record. The Court found the reasons mentioned in the supporting affidavit to be satisfactory. Furthermore, the Court granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Court also accorded permission to the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if no funds are available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court did not expressly leave any issue undecided.
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. The Official Liquidator argued that these accounts and the report are necessary for the proper administration of the company in liquidation. The revenue or State did not present any arguments on this issue as it is an internal procedural matter for the company in liquidation. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator contended that this fee is a legitimate expense for the audit of the company's accounts. The revenue or State did not present any arguments on this issue. 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. The Official Liquidator argued for the necessity of this provision to ensure the smooth functioning of the liquidation process. The revenue or State did not present any arguments on this issue.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3168 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY,THE TWENry SECOND DAY OF SEPTEMBER TWO THOUSAND AND TWENW FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPANY APPLICATION NO: 223 OF 2025 C.P.No. 38 of 2005 ln the matter of the Companies Act, 1956 And ln the mafter of M/s Visveswara Finance and Chit Funds Limited (in liqn)
The Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1stfloor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad -500068 ...APPLICANT Application Under Section 462 of Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules 1959 praying that this Hon'ble Court may be pleased to : take the half-yearly accounts of the subject company (in liquidation) for the period from 01.O4.2O23 to 30.09.2023, along with Independent Auditors Report dated 31.O5.2025 submitted on 09.06.2025 by M/s. KBS andAssociates, Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. fl. cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the Official Liquidator from t
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