In The Matter Of M/S.Mitra Chit Fund (P) Limited In Liqn vs. The Official Liquidator

Facts

The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Mitra Chit Fund (P) Limited (in liquidation) for the period 01.04.2022 to 30.09.2022, along with the Auditors' Report dated 17.06.2024. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates, Chartered Accountants. Additionally, the Official Liquidator requested permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund if company funds were insufficient. The application was supported by an affidavit.

Held

The Court accepted the prayer of the Official Liquidator. It ordered that the half-yearly accounts and the Auditors' Reports submitted by M/s. KBS and Associates, Chartered Accountants, for the company in liquidation be taken on file. The Court also implicitly granted permission for the payment of audit fees and application costs by accepting the Official Liquidator's application in its entirety, which included these prayers. The reasoning was based on the perusal of the Auditors' Reports with the assistance of the learned counsel for the Official Liquidator, leading to the acceptance of the prayer. The ratio decidendi is that the High Court, in its winding-up jurisdiction, will facilitate the necessary administrative and financial steps for the liquidation process upon satisfactory submission of accounts and reports by the Official Liquidator and auditors.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and the Auditors' Report for the period 01.04.2022 to 30.09.2022, as submitted by M/s. KBS and Associates, Chartered Accountants, for the company in liquidation. 2. Whether permission should be granted to make the payment of audit fee of Rs. 500/- plus GST to the said 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 account. Contentions: Petitioner (Official Liquidator): The Official Liquidator, through his counsel, submitted the half-yearly accounts and Auditors' Report and sought the Court's permission to take them on record and to approve the payment of audit fees and application costs. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. Revenue/State: No specific arguments were recorded for the Revenue or State in the judgment provided.