In The Matter Of M/S. R.G.Foundry Forge Limited.(In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. R.G. Foundry Forge Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Auditors' Report dated 01.11.2024. The application also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS & Associates, Chartered Accountants. The costs of the application were also sought to be met from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit from the Official Liquidator and argued by their counsel.

Held

The Court accepted the prayer made in the Company Application. It ordered that the half-yearly accounts and the auditors' reports submitted by M/s. KBS & Associates, Chartered Accountants, for the company in liquidation be taken on record. The Court also implicitly granted permission for the payment of the audit fee and the costs associated with the application by accepting the application in its entirety, which included these prayers. The reasoning was based on the perusal of the auditors' reports with the assistance of the Official Liquidator's counsel. The operative direction was to order the Company Application accordingly, signifying the acceptance of all its prayers.

Key Issues

1. Whether the half-yearly accounts and the auditors' reports of the company in liquidation, submitted by M/s. KBS & Associates, should be taken on record by the Court? (Question of procedure/administration) 2. Whether permission should be granted to the Official Liquidator to make payment of the audit fee of Rs. 500/- plus GST to the auditors? 3. Whether the costs of the Company Application, including court fee stamps and notary charges, can be met from the available funds of the company in liquidation or the Estate and Establishment Fund? Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through their counsel, presented the half-yearly accounts and auditors' reports and sought their formal acceptance by the Court. They also requested permission to disburse the audit fee and cover the application's costs from the company's funds or the designated fund, as per established practice for companies in liquidation. Arguments for the Revenue/State: The judgment does not record any specific arguments presented by the revenue or state authorities in opposition to the application.