M/S. Vaishu Engineering Industries Limited(In Liqn) Limited vs. Nil

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed Company Application No. 245 of 2025 in R.C.C. No. 14 of 1998. The application sought to take on record the half-yearly accounts of M/s Sri Vaishu Engineering Industries Limited (in liquidation) for the period from 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, M/s KBS & Associates, Chartered Accountants. Furthermore, the Official Liquidator sought 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. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having satisfied with the reasons stated in the supporting affidavit and considering the half-yearly accounts filed by the Official Liquidator, ordered as follows: a. The half-yearly accounts of M/s Sri Vaishu Engineering Industries Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Auditors' Report dated May 31, 2025, submitted on June 9, 2025, by M/s KBS & Associates, Chartered Accountants, are taken on record. b. Permission is accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. c. Permission is also accorded 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 fund is available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court found no impediment to granting these permissions based on the Official Liquidator's submissions.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated May 31, 2025, submitted on June 9, 2025, should be taken on record. 2. Whether permission should be granted to the Official Liquidator to make payment of the audit fee of Rs. 500/- plus GST to the auditors. 3. Whether permission should be accorded to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The petitioner (Official Liquidator) argued that the accounts and auditor's report were duly filed and sought approval for the audit fee and application costs. The revenue or State did not appear to have made any specific arguments as the matter was an application by the Official Liquidator for administrative approval.