In The Matter Of M/S. Uniloids Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application No. 145 of 2025 in R.C.C No. 2 of 1992 concerning M/s. Uniloids Limited (in liquidation). The application sought permission to take on record the half-yearly accounts for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025 submitted by M/s. Murthy and Kanth, Chartered Accountants. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditor and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon asset realization. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having been satisfied with the reasons mentioned in the supporting affidavit and upon considering the half-yearly accounts filed by the Official Liquidator, ordered the application. Specifically, the Court took on record the half-yearly accounts of M/s. Uniloids Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025 submitted by M/s. Murthy & Kanth, Chartered Accountants. Permission was also accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Furthermore, permission was granted to the Official Liquidator to make this payment 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. The ratio decidendi is that the Court will grant necessary permissions for the proper conduct of liquidation proceedings, including payment of audit fees and incidental costs, provided the accounts and reports are in order and the expenses are justified.

Key Issues

1. Whether the Court should accord permission to take on record the half-yearly accounts of the company in liquidation for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025. The Official Liquidator argued for this, presenting the accounts and report for the Court's consideration. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Official Liquidator contended that this payment is necessary for the audit services rendered. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The Official Liquidator argued that these expenses are incidental to the liquidation process and should be allowed from available funds, with a provision for future reimbursement.