Of M/S.Tungabhadra Industries Limited (In Liqn) vs. No Respondent

Facts

This case involves an application filed by the Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, on behalf of M/s Tungabhadra Industries Limited (in liquidation). The Official Liquidator sought permission to take on record the half-yearly accounts of the company for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025. Crucially, the application also requested permission to make a payment of Rs. 500/- plus GST towards the audit fee to the auditors, M/s. KBS and Associates, Chartered Accountants. The Official Liquidator also sought permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement.

Held

The Court held in favor of the Official Liquidator on all counts. Firstly, the Court was satisfied with the reasons presented in the supporting affidavit and, upon considering the half-yearly accounts and the Auditor's Report, ordered that these documents be taken on record. Secondly, the Court granted permission to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS & Associates, Chartered Accountants. Thirdly, the Court also accorded permission for the Official Liquidator to make this payment from the available funds of the Company (in liquidation) or, if no funds were available in the company's account, from the Estate and Establishment Fund account. This payment was permitted subject to reimbursement from the funds of the Company (in liquidation) upon the realization of its assets. The Court's decision was based on its satisfaction with the reasons provided by the Official Liquidator and the submitted financial documentation.

Key Issues

1. Whether the Court should grant permission to take on record the half-yearly accounts of the company in liquidation for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 31.05.2025, as required under company law procedures. 2. Whether permission should be accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates, Chartered Accountants. 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, subject to reimbursement. Contentions: Petitioner (Official Liquidator): Argued for the approval of the accounts and the payment of audit fees and application costs, citing the necessity of these actions for the proper winding up of the company. Relied on the supporting affidavit and the auditor's report. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.