M/S.ITC Agrotech Finance And Investments Limited (In Liqn) vs. Nil

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking directions regarding the half-yearly accounts of M/s. ITC Agrotech Finance & Investments Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024. The application also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. Padmanabha Rao and Co., Chartered Accountants, whose report was submitted on 03.06.2025. Additionally, the Official Liquidator sought 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 assets. The application was supported by an affidavit and argued by the counsel for the Official Liquidator.

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 the subject company, 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. 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 funds are 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 the reasons provided by the Official Liquidator to be satisfactory.

Key Issues

1. Whether 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 27.05.2025, should be taken on record. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditors. 3. Whether the costs of the application can be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through their counsel, presented the half-yearly accounts and the auditor's report, seeking their formal acceptance by the Court. They also requested approval for the payment of the audit fee and the costs associated with the application, explaining the proposed source of funds and the condition of reimbursement. Arguments for the Revenue/State: The judgment does not record any specific arguments presented by the Revenue or State in this matter.