M/S. Enso Secutrack Limited(In Liqn) vs. No Respondent
Facts
The Official Liquidator of M/s. Enso Secutrack Limited (in liquidation) filed a Company Application seeking to take on record the half-yearly accounts for the period 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024. The application also prayed for permission to pay the audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator also sought permission to meet the cost 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 argued by the Official Liquidator's counsel.
Held
The Court took the half-yearly accounts of M/s. Enso Secutrack 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. The Court was satisfied with the auditors' report. Consequently, permission was accorded to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditors. The Court also permitted the cost of the application to be met from the available funds of the company (in liquidation). No order was made as to costs. The ratio decidendi is that when an Official Liquidator presents proper accounts and an auditor's report, and seeks necessary approvals for payments like audit fees and application costs, the Court will grant such approvals if satisfied, ensuring the smooth functioning of the liquidation process.
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 cost of the application can be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund. The petitioner, the Official Liquidator, argued that the accounts and report were in order and sought approval for the payment of audit fees and costs. The revenue or State did not file any counter or present arguments in this matter.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3168 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD ln the matter of the Companies Act, 1956 And ln the matter of M/s. Enso Secutrack Limited(in liqn), Between: The Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad - 500068 ..:Applicant Application under Section 462 of the Companres Act, 1956 read with Rules 298 and Rule 306 of the Companies (Court) Rules, 1959 praying that this Court may be pleased to: i) take the half-yearly accounts of the subject company (in liquidation) for the period from 01.1O.2022 lo 31.03.2023, along with lndependent Auditors Report dated 13.12.2024 submitted on 16.12-2024 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. ii) cost of this application (Court fee Stamps and Notary Charges etc..) may he permitted to be met out by the Official Liquidator from the available funds of the company (in liquidation) or Estate and Establishment Fund accounl if no fund is available in the company's account.
This application coming on fo
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