In The Matter Of Mjs. Tirumala Technologies Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. Visveswara Finance & Chit Funds Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023. The application also prayed for permission to make payment of an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth, Chartered Accountants. Furthermore, the Official Liquidator sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund account, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.

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 on 05.06.2025 by M/s. Murthy & Kanth, Chartered Accountants, are taken on record. Permission was accorded to the learned Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. The Court also granted permission 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 fund is 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 permission should be granted 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. This issue pertains to the procedural compliance and accounting practices for a company under liquidation. 2. Whether permission should be accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. This issue concerns the authorization of expenses related to the liquidation process, specifically audit fees, and the applicability of GST on such fees. 3. Whether the costs of the application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund account. This issue relates to the financial management and disbursement of funds during the liquidation proceedings. The petitioner, the Official Liquidator, argued for the approval of the accounts, payment of audit fees including GST, and the use of available funds for application costs. The revenue or State did not record any specific arguments in the judgment.