The Ol Of M/S New Gujarat Synthetics LTD (In Liqn) vs. Na

Held

The Court accepted the Official Liquidator's Report. The primary finding was that the professional fees claimed by the Chartered Accountant were justified and necessary for the proper administration of the company in liquidation. The Court considered the verification of workmen's claims and the funds available. The ratio decidendi is that the High Court, in its supervisory role over companies in liquidation, has the power to sanction reasonable professional expenses incurred by the Official Liquidator. The operative direction was that the amount of Rs. 2,37,888, inclusive of GST, should be paid to the Chartered Accountant via RTGS, subject to proper verification. No issues were expressly left undecided.

Facts

This matter concerns an Official Liquidator's Report filed before the High Court of Gujarat. The Official Liquidator of M/s. New Gujarat Synthetics Ltd. (in liquidation) sought directions regarding the payment of professional fees to a Chartered Accountant. The report detailed the verification of claim forms submitted by the workmen of the company and the available funds. The Chartered Accountant's fees, including Goods and Services Tax (GST), amounted to Rs. 2,37,888. The Official Liquidator requested the Court's approval for this payment.

Key Issues

1. Whether the Official Liquidator's Report, seeking approval for payment of professional fees to the Chartered Accountant, should be accepted? This issue turns on the Court's discretion to sanction expenses incurred by the Official Liquidator in managing a company in liquidation. Contentions: Petitioner (Official Liquidator): The Official Liquidator argued that the professional fees were necessary for the verification of workmen's claims and the overall management of the company in liquidation. They relied on the verification work carried out by the Chartered Accountant and the availability of funds within the company to justify the payment. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.