M/S. Vini-Metaspin Steels 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 (CA No. 224 of 2025) in the matter of M/s Vini-Metaspin Steels Limited (in liquidation). The application sought to take on record the half-yearly accounts for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 31.05.2025. The Official Liquidator also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s KBS and 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 heard by the High Court.

Held

The Court held that the half-yearly accounts of M/s Vini-Metaspin Steels Limited (in liquidation) for the period 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 31.05.2025, should be taken on record. The Court was satisfied with the reasons provided in the supporting affidavit. Furthermore, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Court also granted permission for this payment to be made from the available funds of the company in liquidation, or from the Estate and Establishment Fund if company funds were unavailable, with the condition of subsequent reimbursement from the company's assets upon realization. The Court found no impediment to granting these reliefs.

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 by the Court. The Official Liquidator argued for this, presenting the accounts and report for the Court's consideration. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s KBS and Associates. The Official Liquidator contended that this payment was necessary for the audit of the company's accounts. 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. The Official Liquidator argued for this to ensure the smooth functioning of the liquidation process. The Revenue or State did not appear to have made any arguments as the matter pertains to the administration of a company in liquidation.