M/S. Sree Bhagyalaxmi Coal And Minerals Trading Private. Limited(In Prov. Liqn. ) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed Company Application No. 203 of 2025 in C.P. No. 298 of 2015. The application sought to take on record the half-yearly accounts of Sree Bhagyalaxmi Coal & Minerals Trading Private Limited (in provisional liquidation) for the period April 1, 2023, to September 30, 2023. It also requested permission to pay an audit fee of Rs. 500 plus GST to the independent auditors, KBS & Associates, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon asset realization. The application was supported by an affidavit from the Official Liquidator and heard by the High Court.

Held

The Court held in favour of the Official Liquidator on all counts. Firstly, the half-yearly accounts of Sree Bhagyalaxmi Coal & Minerals Trading Private Limited (in liquidation) for the period April 1, 2023, to September 30, 2023, along with the Auditor's Report dated May 31, 2025, submitted on June 9, 2025, by 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 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 assets. The Court was satisfied with the reasons mentioned in the supporting affidavit.

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 auditor's report. 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. The petitioner, the Official Liquidator, argued that the accounts and auditor's report were duly submitted and that the audit fee and application costs were necessary for the liquidation process. The revenue or State did not appear to have filed any specific arguments or objections, as the judgment focuses on the Official Liquidator's application and the Court's satisfaction with the provided documentation.