M/S. Sri D.S.M Chit Funds PVT Limited(In Liqn) vs. No Respondent

Facts

This matter concerns a Company Application filed by the Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, for M/s. Sri O.S.#[Xrt Funds Pvt Limited (in liqn). The application, filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959, sought permission to take on record the half-yearly accounts of the company in liquidation for the period from 01/10/2022 to 31/03/2023, along with the Auditor's Report dated 10/04/2025. It also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditor, M/s. Murthy and Kanth, Chartered Accountants, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund.

Held

The Court held that the half-yearly accounts of the subject company, which is 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, are to be taken on record. The Court also granted permission 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 account if no funds are available in the company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The reasoning was based on the satisfaction with the reasons mentioned in the supporting affidavit and consideration of the filed 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, along with the Auditor's Report dated 10/04/2025. The Official Liquidator argued for the acceptance of these accounts and report to facilitate the payment of audit fees and other costs. There is no recorded argument from the revenue or State in this matter. 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 proper functioning of the liquidation process and to compensate the auditor for their services. The revenue or State did not present any arguments on this issue.