M/S.Krishi Engines Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. Krishi Engines Limited (in liquidation) for the period 01.10.2023 to 31.03.2024. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of company assets. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having satisfied with the reasons mentioned in the supporting affidavit and considering the half-yearly accounts filed by the Official Liquidator, ordered as follows: (a) The half-yearly accounts of the subject company, which is in liquidation for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 27.05.2025 submitted on 03.06.2025 by M/s. Padmanabha Rao & Co., 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. 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 did not expressly leave any issue undecided.

Key Issues

1. Whether permission should be granted to the Official Liquidator to take on record the half-yearly accounts of M/s. Krishi Engines Limited (in liquidation) for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report. 2. Whether permission should be accorded to the Official Liquidator to make payment of 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 Company Application from the available funds of the company (in liquidation) or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and auditor's report for the specified period and sought the court's approval for the same. The Official Liquidator also sought permission to pay the audit fee and cover the application costs, as detailed in the supporting affidavit.