In The Matter Of M/S.Mamatha Chit Funds Private Limited (In Prov. Liqn.) vs. No Resppondent
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application (CA No. 110 of 2025) in the matter of M/s. Mamatha Chit Funds Private Limited (in Provisional Liquidation). The application sought permission to take on record the half-yearly accounts for the period 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025. Crucially, it requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator also sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement.
Held
The Court held that the application filed by the Official Liquidator was to be ordered. Specifically, the half-yearly accounts of the company in liquidation for the period 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025, were taken on record. Permission was granted 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 the company's account was depleted, subject to reimbursement upon realization of the company's assets. The Court was satisfied with the reasons provided in the supporting affidavit and the consideration of the filed accounts.
Key Issues
1. Whether the Court should accord permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants, for the period 01.04.2023 to 30.09.2023, as per the application filed under Section 462 of the Companies Act, 1956 read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The petitioner (Official Liquidator) argued that the payment of audit fees, including GST, is necessary for the proper conduct of the liquidation proceedings and the submission of required financial reports. The revenue or State did not appear to have made any specific arguments recorded in the judgment, as the matter was heard ex-parte on behalf of the Official Liquidator.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3168 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNE AY, THE SIXTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPANY APPLICATION No. 110 ot 2025 IN COMPANY PETITION No: 13 of 2002 ln the matter of the Companies Act, 1956 And ln the matter of M/s.Mamatha Chit Funds Private Limited (ln Prov. Liqn.), The Official Liquidgtor, attached to the Honble High Court of Telangana, and Andhra Pradesh, 1"' floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad - 500068 ...Applicant Application under Section 462 of the Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules, '1959 praying that this Court may be pleased to: i) take the half-yearly accounts of the subject company (in liquidation) for the period from 01.04.2023 to 30.09.2023, along with lndependent Auditors' Repo( dated 27.052025 submitted on 03.06.2025 by M/s.
Padmanabha Rao and Co., Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500i- plus GST to the said auditor. cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the Official Liqui
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