M/S. Roofers Associates Limited(In Liqn) vs. Nil

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. Roofers Associates Limited (in liquidation) for the period 01.04.2023 to 30.09.2023. 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 disburse these costs from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.

Held

The High Court, after considering the application and the supporting affidavit, was satisfied with the reasons provided by the Official Liquidator. The Court held that the half-yearly accounts of M/s. Roofers Associates Limited (in liquidation) for the period 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025, should be taken on record. Furthermore, the Court accorded permission to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors. The Court also granted permission for the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if the company's account lacked sufficient funds. This payment is subject to reimbursement from the company's funds upon the realization of its assets. The Court did not leave any issue undecided.

Key Issues

1. Whether the High Court should accord permission to take on record 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. 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 the Official Liquidator should be permitted to utilize the company's available funds or the Estate and Establishment Fund for the payment of audit fees and other costs, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditor's report, seeking their formal acceptance by the Court. He also requested authorization to pay the stipulated audit fee, including the Goods and Services Tax (GST), and to utilize available funds for this purpose, as is standard procedure in liquidation proceedings. The counsel highlighted that these actions are necessary for the proper administration of the liquidation process. Arguments for the Revenue/State: The judgment does not record any specific arguments presented by the revenue or state authorities in opposition to the application.