M/S. Shree Gouraavi Plastic Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator (OL), attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 135 of 2025. The application sought to take on record the half-yearly accounts of M/s Shree Gouraavi Plastic Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025. The OL also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy and Kanth, Chartered Accountants. The application 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 dated 16.07.2025.

Held

The Court took on record the half-yearly accounts of M/s Shree Gouraavi Plastic Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025. The Court also granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy and Kanth, Chartered Accountants. Furthermore, the Court accorded permission 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 company funds were insufficient, with the condition that such payments would be reimbursed upon the realization of the company's assets. The Court was satisfied with the reasons provided in the supporting affidavit and considered the submitted accounts.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01.10.2022 to 31.03.2023 and the accompanying Auditor's Report dated 10.04.2025. The Official Liquidator, as the applicant, contended that these documents are essential for the proper administration of the liquidation proceedings. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator argued that this payment is a necessary expense for the audit of the company's accounts. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from available funds, subject to reimbursement. The Official Liquidator submitted that this is a standard procedural requirement to ensure the smooth functioning of the liquidation process. The revenue or State did not appear to have made any specific arguments, as the matter was heard ex parte from their perspective.