M/S. Vaishu Engineering Industries Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 133 of 2025. The application sought permission to take on record the half-yearly accounts of M/s. Vaishu Engineering Industries Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025. Additionally, the Official Liquidator prayed for permission to pay an audit fee of Rs. 500/- plus GST to the chartered accountants, M/s Murthy and Kanth, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit sworn by Sri Uttam Kumar Sahoo, the Official Liquidator.

Held

The Court, having been satisfied with the reasons presented in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered as follows: Firstly, the half-yearly accounts of M/s. Vaishu Engineering Industries Limited (in liquidation) 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 & Kanth, Chartered Accountants, were taken on record. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Thirdly, permission was also 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 if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court found the application to be in order based on the provided documentation and submissions.

Key Issues

1. Whether 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, should be taken on record by the Court? (Question of procedure) 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy and Kanth? (Question of procedure and financial approval) 3. Whether the costs associated with the application can be defrayed from the company's funds or the Estate and Establishment Fund, subject to reimbursement? (Question of financial procedure) Contentions: Petitioner (Official Liquidator): Argued for the acceptance of the accounts and the auditor's report, and for permission to pay the audit fee and application costs, citing the necessity of these actions in the liquidation process. The Official Liquidator relied on the supporting affidavit detailing the circumstances. Revenue/State: No arguments were recorded for the revenue or State in the judgment.