M/S. T.V.K.Equity Fund 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 to take on record the half-yearly accounts of M/s Sri T.V.K. Equity Fund 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 & Associates, Chartered Accountants, whose report was submitted on June 9, 2025. Furthermore, the Official Liquidator 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.

Held

The Court held that the half-yearly accounts of the subject company, which is in liquidation, for the period from April 1, 2023, to September 30, 2023, along with the Auditor's Report dated May 31, 2025, submitted on June 9, 2025, by M/s KBS & Associates, Chartered Accountants, should be taken on record. Permission was also accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Additionally, the Court permitted the Official Liquidator to make this 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 Court was satisfied with the reasons mentioned in the supporting affidavit.

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. 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 meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Petitioner's Arguments (Official Liquidator): The Official Liquidator argued that the application was made under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The supporting affidavit provided the necessary reasons for the application. Revenue/State's Arguments: The judgment does not record any specific arguments from the revenue or state authorities.