M/S. Nest Enterprises Private Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana, filed Company Application No. 122 of 2025. The application sought permission to take on record the half-yearly accounts of M/s. Nest Enterprises Private Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator further sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having considered the reasons stated in the supporting affidavit and the half-yearly accounts filed by the Official Liquidator, ordered as follows: (a) The half-yearly accounts of M/s. Nest Enterprises Private Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025 submitted by M/s. Padmanabha Rao & Co., Chartered Accountants, were taken on record. (b) Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. (c) Permission was also granted to the Official Liquidator to make the said 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 funds of the Company (in liquidation) upon realization of its assets. The Court was satisfied with the reasons provided in the affidavit.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025. 2. Whether permission should be granted to the Official Liquidator to make payment of audit fee of Rs. 500/- plus GST to the auditors. 3. Whether permission should be granted to meet the costs of the application from the available funds of the company or the Estate and Establishment Fund, subject to reimbursement. Petitioner's Arguments: The Official Liquidator, representing the applicant, presented the half-yearly accounts and the auditor's report, seeking their formal acceptance by the Court. The Official Liquidator also requested authorization to pay the audit fee and cover application costs, citing the necessity for these expenses in the liquidation process. The Official Liquidator argued that these payments are standard procedures in company liquidation and are essential for the proper functioning of the liquidation process. Revenue/State's Arguments: The judgment does not record any specific arguments from the revenue or state.