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

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application under the Companies Act, 1956, seeking permission to take on record the half-yearly accounts of M/s Shree Gouraavi Plastic 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 and Associates, Chartered Accountants, whose report was submitted. Additionally, the Official Liquidator requested permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets.

Held

The Court, having considered the half-yearly accounts and the auditor's report, and being satisfied with the reasons provided in the supporting affidavit, ordered as follows: a) The half-yearly accounts of M/s Shree Gouraavi Plastic Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 31.05.2025, were taken on record. b) Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500 plus GST to the auditor. c) Permission was also granted 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 were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court found no impediment to granting the reliefs sought.

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 dated 31.05.2025. 2. Whether permission should be granted to make the payment of 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 or the Estate and Establishment Fund, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditor's report, satisfying the court with the reasons stated in the supporting affidavit. The counsel argued for the approval of the accounts, the payment of audit fees, and the meeting of application costs from company funds as outlined in the application.