The Official Liquidator vs. S
Held
The Court allowed the company application in part. It held that the half-yearly accounts for the period April 1, 2022, to September 30, 2022, along with the auditor's report dated December 2, 2023, submitted by M/s. KBS & Associates, should be taken on record. The Court also permitted the payment of the audit fee of Rs. 500 plus GST. However, the Court did not allow the miscellaneous expenses, stating that no details or evidence were provided to substantiate them. The operative direction was to allow the application as prayed for, excluding the miscellaneous expenses. No costs were awarded.
Facts
The Official Liquidator, representing a company in liquidation, filed a company application seeking permission to take on record the half-yearly accounts for the period April 1, 2022, to September 30, 2022, along with the auditor's report dated December 2, 2023. The application also sought permission to pay the audit fee of Rs. 500 plus GST and to meet miscellaneous expenses from the company's funds or the Estate and Establishment Fund. The auditor, M/s. KBS & Associates, appointed by the Court, submitted their report on December 5, 2023, indicating no adverse comments on the company's statement of accounts. However, the Court noted that no details or evidence were provided for the miscellaneous expenses.
Key Issues
1. Whether the half-yearly accounts of the company (in liquidation) for the period 01-04-2022 to 30-09-2022, along with the auditor's report dated 02-12-2023, should be taken on record and the audit fee of Rs. 500 plus GST permitted to be paid. 2. Whether the miscellaneous expenses incurred by the Official Liquidator should be permitted to be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund Account. Contentions of the Petitioner (Official Liquidator): The Official Liquidator, through their counsel, sought the Court's permission to formally record the audited half-yearly accounts and to authorize the payment of the audit fee, acknowledging the auditor's report which found no adverse comments. They also requested permission to cover miscellaneous expenses from company funds or the designated fund. Contentions of the Revenue/State: The judgment does not record any specific arguments or contentions from the Revenue or State in this matter.
Sections Cited
Section 462, Companies Act, 1956, Rule 298, Companies (Court) Rules 1959, Rule 306, Companies (Court) Rules 1959
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Cause title — parties, addresses and appearances
ORDER:
This company application is filed under Section 462 of the Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules 1959 by the Official Liquidator, for the following reliefs: i) Take the half-yearly accounts of the subject company (in liquidation) for the period from 01-04-2022 to 30-09-2022 along with Auditor Report dated 02-12-2023 submitted on 05-12-2023 by M/s. KBS & Associates, Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500 plus GST. ii) Cost of this application and any miscellaneous exp
The judgment continues below.
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