In The Matter Of M/S. Monarch Pipes Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator of M/s. Monarch Pipes Limited (in liquidation) filed a Company Application before the High Court of Telangana. 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, the application also prayed for permission to make payment of an audit fee of Rs. 500/- plus GST to the auditor. 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. The application was supported by an affidavit and heard by the Court.

Held

The Court considered the application filed by the Official Liquidator and was satisfied with the reasons presented in the supporting affidavit. The Court decided to take on record the half-yearly accounts of M/s. Monarch Pipes Limited (in liquidation) for the period 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025. Furthermore, the Court accorded permission to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditor. Permission was also granted to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if company funds were unavailable, with the condition of reimbursement from the company's funds upon realization of its assets. 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 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report. 2. Whether permission should be granted to make payment of the audit fee of Rs. 500/- plus GST to the auditor. 3. Whether permission should be granted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and auditor's report, satisfying the Court with the reasons stated in the supporting affidavit. The counsel argued for the approval of these accounts and the payment of the audit fee and application costs as outlined in the application. Arguments for the Revenue/State: No arguments were recorded for the Revenue or State in the judgment.