In The Matter Of M/S.Mitra Chit Fund Private Limited. (In Liqn.) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Mitra Chit Fund Private Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the auditors' report dated 01.11.2024 submitted by M/s. KBS & Associates, Chartered Accountants. The application also requested permission to make the payment of audit fee of Rs. 50,000 plus GST to the auditors and to meet the cost of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit from the Assistant Official Liquidator and argued by the counsel for the Official Liquidator.
Held
The Court decided to take the half-yearly accounts and the auditors' reports of M/s. Mitra Chit Fund Private Limited (in liquidation) for the period 01.10.2022 to 31.03.2023 on record. The Court perused the auditors' reports with the assistance of the learned counsel for the Official Liquidator and found the prayer to be acceptable. The reasoning was based on the proper procedure for companies in liquidation, where the Official Liquidator is tasked with managing the company's affairs and presenting financial statements for judicial scrutiny. The operative direction was that the Company Application is ordered accordingly, implying the acceptance of the prayers made by the Official Liquidator regarding taking the accounts on record and implicitly permitting the payment of audit fees and costs as sought. No issue was expressly left undecided.
Key Issues
1. Whether the half-yearly accounts and the auditors' report for the period 01.10.2022 to 31.03.2023, submitted by M/s. KBS & Associates, Chartered Accountants, for M/s. Mitra Chit Fund Private Limited (in liquidation) should be taken on record by the Court? (Question of procedure turning on Section 462 of the Companies Act, 1956 and Rule 298 of the Companies (Court) Rules, 1959). Contentions: Petitioner (Official Liquidator): Argued that the application seeks to formally record the financial statements and audit findings as per statutory requirements and sought permission for payment of audit fees and associated costs. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE TWENry FOURTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR COMPANY APPLICATIO N No.8 of2025 IN COMPANY PETITION NO: 20 OF't984 ln the Mafter of the Companies Act, 1956 And [ 3166 ] ...Applica nt g.tr"en1n the matter of M/s. Mitra Chit Fund private Limited. (tn Liqn.), I he otficiar Liquidator. attached to the Honbre High court of rerangana, and ff3J6A Pradesh. 1st ftoor Corporare Bhr;;;, dr;;Y;suda, Nasote, Hyderabad _ Application Under Secti and Rule 306 of the Com Court may be pleased to on 462 of the Companies Act, 1g56 read with Rule 298 panies (Court) Rules, 19S9) praying that this ion Of. i) take the hal'f-yearly accounts of the subject company (in liquidation) for the period from 01.10.2022.to 31 03.202S, ,t"rg-*itn Auditors Report dated 01 .11 2024 submitted on OS lt ZOtiq- O, ,O KBS and Associates., Chartered Accountants on record anJ permission may be accorded to make the payment of audit fee of Rs.SObl_ plus GST to the said auditor ii) cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the officiar Liq
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