M/S.Taurus Earthmovers Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s Taurus Earthmovers 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 application also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy and Kanth Chartered Accountants. Furthermore, the Official Liquidator sought permission to debit the audit fee and other costs of the application from the available funds of the company in liquidation or from the Estate and Establishment Fund account, subject to reimbursement upon realization of assets. The Court heard the arguments of the counsel for the Official Liquidator.

Held

The Court, having satisfied with the reasons mentioned in the supporting affidavit and considering the half-yearly accounts filed by the learned Official Liquidator, ordered as follows: (a) 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 taken on record. (b) Permission is granted to the learned Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. (c) Permission is also accorded to the learned 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 Court found no impediment to granting the reliefs sought by the Official Liquidator.

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, as prayed by the Official Liquidator under Section 462 of the Companies Act, 1956 read with Rules 298 and 306 of the Companies (Court) Rules, 1959? 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 Chartered Accountants? 3. Whether the Official Liquidator should be permitted to debit the audit fee and costs of the application from the company's funds or the Estate and Establishment Fund account, subject to reimbursement? Contentions: Petitioner (Official Liquidator): Argued for the acceptance of the half-yearly accounts and the Auditor's Report, and for permission to pay the audit fee and associated costs from the available funds, citing the necessity of these steps in the liquidation process.