M/S. Omc Computers Limited(In Liqn) vs. Nil

Facts

The Official Liquidator of M/s. OMC Computers Limited (in liquidation) filed a Company Application before the High Court for the State of Telangana. The application sought 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. Additionally, the Official Liquidator requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The application also sought 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 Court heard arguments from the counsel for the Official Liquidator.

Held

The Court held that the half-yearly accounts of M/s. OMC Computers 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. The Court was satisfied with the reasons mentioned in the supporting affidavit and considered the submitted accounts. Furthermore, the Court accorded permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Court also granted permission for this payment to be made from the available funds of the company in liquidation, or from the Estate and Establishment Fund if company funds were insufficient, with the condition of reimbursement from the company's funds upon realization of its assets. The ratio decidendi is that the Court will grant necessary permissions for the smooth conduct of liquidation proceedings, including the acceptance of accounts and payment of professional fees, provided the supporting documentation and justifications are satisfactory.

Key Issues

1. Whether 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, should be taken on record. The Official Liquidator argued for their acceptance, submitting them in support of the application. The Revenue or State did not present any arguments on this issue as recorded in the judgment. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator contended that this payment was necessary for the audit of the company's accounts. No arguments were recorded for the Revenue or State on this point. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The Official Liquidator argued for this provision to ensure the smooth functioning of the liquidation process. The Revenue or State did not present any arguments on this issue.