The Official Liquidator vs. Xx
Held
The Court directed the distribution of 35 companies equally among the three auditors, allotting 12 companies to each. It also permitted the Official Liquidator to pay a fee of Rs. 500 plus GST per company to each auditor.
Facts
The Official Liquidator filed a company application seeking approval for the allocation of 35 companies in liquidation to three Chartered Accountants for auditing half-yearly accounts. The application also sought permission to dispense with audits for companies with no transactions and to pay auditor fees.
Key Issues
The primary issues were the allocation of audit work for companies in liquidation and the payment of fees to the auditors, considering the nature of work and potential lack of transactions in some companies.
Sections Cited
Sections 457, 462, Rule 9, Rules 298, 300, 302, 304, 306
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
COMPANY APPLICATION NO.10 OF 2025 IN C.P.No.34 OF 1985
ORDER:
This company application is filed under Sections 457 & 462 of the Companies Act, 1956 read with Rules 298, 300, 302, 304, 306 & 309 and Rule 9 of the Companies (Court) Rules, 1959, claiming the following reliefs: i. Take the affidavit and facts stated on record. ii. Approve the allocation of 35 companies (in liqn) as per Annexure-B to 3 Chartered Accountants viz., 1) M/s. Murthy & Kanth, Chartered Accountant, Hyderabad 2) M/s. Padmanabha Rao & Co., Chartered Accountant, Hyderabad 3) M/s. K.B.S. Associates, Chartered Accountant, Hyderabad proportionately (i.e., 12 companies each to two auditors at Sl.No.1 & Sl.No.2 and 11 companies to one auditor at Sl.No.3) or pass such other order as this Hon’ble Court may deem fit and proper for the audit of Half Yearly Accounts for the period from 01.04.2023 to 30.09.2023. NV,J C.A.No.10 of 2025
2 iii. Permit the Official Liquidator to file the Audit Report of Half Yearly accounts for the period from 01.04.2023 to 30.09.2023 in respect of 35 Companies in li
The judgment continues below.
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