M/S.Nirup Synchrome Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application No. 173 of 2025. The application sought permission to take on record the half-yearly accounts of M/s. Nirup Synchrome Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024. It 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. The Official Liquidator further 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 argued by the counsel for the Official Liquidator.

Held

The Court, having considered the supporting affidavit and the half-yearly accounts filed by the Official Liquidator, was satisfied with the reasons provided. The Court ordered that the half-yearly accounts of M/s. Nirup Synchrome Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024, along with the Auditor's Report dated May 27, 2025, submitted on June 3, 2025, by M/s. Padmanabha Rao & Co., Chartered Accountants, be taken on record. Furthermore, permission was accorded to the Official Liquidator to pay the audit fee of Rs. 500 plus GST to the auditor. The Court also granted permission for the payment to be made from the available funds of the company in liquidation, or from the Estate and Establishment Fund account if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. No issues were expressly left undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from October 1, 2023, to March 31, 2024, along with the Independent Auditors' Report dated May 27, 2025. 2. Whether permission should be granted to pay the audit fee of Rs. 500 plus GST to the auditors. 3. Whether permission should be granted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The petitioner, the Official Liquidator, argued that the application was made in accordance with the Companies Act, 1956, and the Companies (Court) Rules, 1959, and that the accounts and auditor's report were duly submitted. The revenue or State did not appear to have presented any arguments as this was an application by the Official Liquidator for administrative and financial approvals related to a company in liquidation.