M/S.Shree Gouraavi Plastic Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 198 of 2025. The application sought to take on record the half-yearly accounts of M/s Shree Gouraavi Plastic Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s KBS & Associates, Chartered Accountants, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The application was supported by an affidavit and argued by the Official Liquidator's counsel.

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: Firstly, the half-yearly accounts of M/s Shree Gouraavi Plastic Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 31.05.2025 submitted on 09.06.2025 by M/s KBS & Associates, Chartered Accountants, were taken on record. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Thirdly, 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 upon realization of its assets. The ratio decidendi is that the Court has the power to approve such routine administrative expenses necessary for the liquidation process under the Companies Act and Rules.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025, should be taken on record, as per the Companies Act, 1956 and the Companies (Court) Rules, 1959. 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 in liquidation or the Estate and Establishment Fund, subject to reimbursement. Petitioner (Official Liquidator) Arguments: The Official Liquidator, through their counsel, presented the half-yearly accounts and auditor's report and sought the court's approval for the payment of audit fees and application costs. The supporting affidavit detailed the necessity of these payments for the proper winding up of the company. Revenue/State Arguments: The judgment does not record any specific arguments from the revenue or state.