In The Matter Of M/S. Nirup Synchrome 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. Nirup Synchrome Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023. The application also sought permission to pay an audit fee of Rs. 500 plus GST to the independent auditors, M/s. Padmanabha Rao and Co., Chartered Accountants, whose report was submitted on June 3, 2025. Additionally, the Official Liquidator requested 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.

Held

The High Court, having been satisfied with the reasons stated in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered the Company Application. The Court took on record the half-yearly accounts of M/s. Nirup Synchrome Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated May 27, 2025. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, permission was accorded to the Official Liquidator to make this payment from the company's available funds or, if insufficient, from the Estate and Establishment Fund, with the understanding that these costs would be reimbursed from the company's assets upon realization. The Court did not expressly leave any issues undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 27.05.2025. 2. Whether permission should be granted to the Official Liquidator to make payment of the audit fee of Rs. 500/- plus GST to the auditors. 3. Whether permission should be granted to the Official Liquidator to meet the costs of the application from the available funds of the company or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and the auditor's report for the specified period. He sought permission to pay the audit fee and cover application costs, as detailed in the supporting affidavit. The Official Liquidator argued that these steps are necessary for the proper administration of the liquidation proceedings. Revenue/State: No specific arguments were recorded for the Revenue or State in the judgment.