M/S.Kode Chit Fund Private Limited (In Liqn) vs. Nil

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 177 of 2025. The application sought permission to take on record the half-yearly accounts of M/s. Kode Chit Fund Private 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 auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator further prayed for 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 the auditor's report.

Held

The Court, having considered the reasons stated in the supporting affidavit and the half-yearly accounts filed by the Official Liquidator, ordered the application. The Court took on record the half-yearly accounts of M/s. Kode Chit Fund Private Limited for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 27.05.2025 submitted by M/s. Padmanabha Rao & Co., Chartered Accountants. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Furthermore, permission was accorded to the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if company funds were insufficient, with the condition that such payments would be reimbursed from the company's funds upon realization of its assets. The Court was satisfied with the reasons provided in the affidavit.

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? (Question of procedure) 2. Whether permission should be granted to make the payment of audit fee of Rs. 500/- plus GST to the auditor? (Question of financial approval) 3. Whether the costs of the application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement? (Question of financial management) Petitioner's Arguments: The Official Liquidator, through their counsel, argued for the approval of the half-yearly accounts and the payment of audit fees and application costs, citing the necessity of these steps for the proper winding up of the company. The Official Liquidator relied on the supporting affidavit and the auditor's report to substantiate the claims. Revenue/State's Arguments: No arguments were recorded on behalf of the revenue or the State in the judgment.