M/S.Mitra Chit Fund Private Limited(In Liqn) vs. Nil
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Mitra Chit Fund Pvt. 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. The Official Liquidator further 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 the company's assets. The application was supported by an affidavit and heard by the High Court.
Held
The Court held in favor of the Official Liquidator on all counts. Firstly, the Court ordered that the half-yearly accounts of M/s. Mitra Chit Fund Pvt. Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report dated May 21, 2025, submitted on June 3, 2025, by M/s. Padmanabha Rao & Co., Chartered Accountants, be taken on record. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500 plus GST to the auditor. Thirdly, the Court 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 funds were available in the company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court was satisfied with the reasons mentioned in the supporting affidavit.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500 plus GST to the auditors. 3. Whether the Official Liquidator should be permitted to utilize available company funds or the Estate and Establishment Fund for the payment of audit fees and application costs, subject to reimbursement. Petitioner's Arguments: The Official Liquidator, through his counsel, presented the half-yearly accounts and auditor's report and sought the court's approval for the payment of audit fees and application costs, citing the necessity of these expenses for the liquidation process. The Official Liquidator relied on the supporting affidavit to justify the requests. Revenue/State's Arguments: No arguments were recorded on behalf of the revenue or the State in the provided judgment extract.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERAAAD COMPANY APPLICATION NO. 1OO OF 2025 ln C.P. NO. 20of 1984 f n]Ute matter of the Companies act, 1956 And n the matter of M/s. Mitra Chit Fund Pvt. Limited in Prov. Li n Between: The fficial.Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, '1"' floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad -500068 ...APPLICANT Company 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 Honble Court may be pleased to an order to. lt. WEDNE AY,THE SIXTH DAY OF AUGU,ST TWO THOUSAND AND TWENW FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN i. take the half-yearly accounts of the subject cornpany (in liquidation) for the period from 0110412023 lo 3010912023, along with lndependent Auditors' Report dated 2710512025 submitted on 03lOOl2O25 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.500l 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 Off
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