The Official Liquidator vs. A

Held

The Court allowed the company application as prayed for, with the exception of miscellaneous expenses. The Court took the half-yearly accounts for the period April 1, 2022, to September 30, 2022, along with the auditor's report dated December 27, 2023, on record. Permission was granted to make the payment of the audit fee of Rs. 500 plus GST. The Court reasoned that the auditor's report contained no adverse comments on the statement of accounts. However, the miscellaneous expenses were disallowed due to a lack of detail or evidence presented in support of them. No costs were awarded.

Facts

The Official Liquidator, acting as the applicant, filed a company application seeking reliefs related to the half-yearly accounts of a company in liquidation for the period April 1, 2022, to September 30, 2022. The application also sought permission to pay an audit fee of Rs. 500 plus GST and to meet miscellaneous expenses from the company's funds or the Estate and Establishment Fund. The accounts were audited by M/s. Murthy & Kanth, Chartered Accountants, who submitted their report on January 3, 2024. The audit report indicated no adverse comments on the statement of accounts. The Court heard the counsel for the Official Liquidator.

Key Issues

1. Whether the half-yearly accounts of the company (in liquidation) for the period from 01-04-2022 to 30-09-2022, along with the auditor's report dated 27-12-2023, should be taken on record and permission granted for the payment of audit fee of Rs. 500 plus GST. The petitioner argued for the acceptance of the accounts and the payment of the audit fee. 2. Whether the cost of the application and any miscellaneous expenses can be permitted to be met by the Official Liquidator from the available funds of the company or the Estate and Establishment Fund. The petitioner sought permission to utilize these funds for miscellaneous expenses. The revenue or State did not present any arguments as this was an application by the Official Liquidator.