M/S.Coduras Exports Limited(In Liqn) vs. Nil

Facts

The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s Coduras Exports Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023. The application also requested 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 16.12.2024. The applicant further sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund if company funds were insufficient. The application was supported by an affidavit and heard by the Court.

Held

The Court took the half-yearly accounts of M/s Coduras Exports Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024, on record. Permission was accorded to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The costs of the application were permitted to be met from the available funds of the Company (in liquidation). The Court also noted that there would be no order as to costs. As a sequel, any pending miscellaneous petitions in the Company Application were ordered to stand closed. The reasoning was based on the satisfaction derived from perusing the auditor's report with the assistance of the counsel for the Official Liquidator.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024, should be taken on record. 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fee of Rs. 500/- plus GST to the auditors. 3. Whether the costs of the application can be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund. Arguments: Petitioner (Official Liquidator): The petitioner sought approval for the accounts and payment of audit fees as detailed in the application, supported by the auditor's report. They also requested permission to utilize company funds or the Estate and Establishment Fund for the application's costs. Revenue/State: No arguments were recorded for the revenue or state in the judgment.