M/S. Sakthi Sai Flowers And Tissues Public Limited.(In Liqn) vs. No Respondent
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. Sakthi Sai Flowers & Tissues Public Limited (in liquidation) for the period 01.10.2021 to 31.03.2022, 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 debit the cost of the application from the available funds of the company in liquidation or from the Estate and Establishment Fund if company funds were insufficient. The application was supported by an affidavit and heard by the High Court.
Held
The Court accepted the prayer made by the Official Liquidator. It ordered that the half-yearly accounts of M/s. Sakthi Sai Flowers & Tissues Public Limited (in liquidation) for the period 01.10.2021 to 31.03.2022, along with the Auditors' Report submitted by M/s. KBS and Associates, Chartered Accountants, be taken on record. The Court also implicitly permitted the payment of the audit fee of Rs. 500/- plus GST and the costs of the application, as these were part of the prayers made by the Official Liquidator and were accepted by the Court's order. The reasoning appears to be based on the routine procedural requirements of overseeing the liquidation process and ensuring that the accounts and audit reports are formally placed before the Court for its perusal and record. The ratio decidendi is that the High Court, in its supervisory role over companies in liquidation, will approve the filing and acceptance of statutory accounts and audit reports, and permit necessary expenses related to the liquidation process, provided they are in order.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and the Auditors' Report for the period 01.10.2021 to 31.03.2022, as submitted by the Official Liquidator. This issue turns on the procedural requirements for winding up proceedings under the Companies Act, 1956 and the Companies (Court) Rules, 1959. 2. Whether the Official Liquidator should be permitted to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates. This issue concerns the expenses permissible during the liquidation process. Contentions: Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and Auditors' Report for the specified period and prayed for their acceptance by the Court. He also sought permission for the payment of audit fees and the costs associated with the application, as per the provisions of the Companies Act, 1956 and the Companies (Court) Rules, 1959.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 34051 IN THE HIGH COURT FOR THE STATE OF TELANGANA -- AT HYDERABAD TUE AY, THE TWELFTH DAY OF NOVEUBER TWO iHOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE JUSTICE MOUSHUMI BHATTACHARYA COMPANY APPLICATION No.96 ot 2O24 COMPANY PETITION NO: 174 o12001 The Official Liquidator, attached to the Honourab.le Hioh Court of Telangana' and Aiii nir'p ra"lt, r.t rro[il6lIpi;E b'h;;;'' B'noias uaa' *'n"'? Jl[1i[1]' -500068.
Application under Section 462 of the companies Act' 1956 read with Rule 298 and Rute 306 ottre cJiiplanieslcourt) Rutes, 1959) praying thatthis Hon'ble Court maY be Pleased to : i)takethehalf-yearlyaccountsofthesubjectcompany.(in.liq.uidation)for the period tro ollrcitiozi to lotostzoz2' along with Auditors Report dated 17tO6t2O;4 s'f itt"A on 2OtOGl2O24 by M/s ' KBS and Associates., Chartered Accountants on record and permissionfiay be accorded t" ,"k;'ih;;;fi;;i;i audit fee of Rs'500/- plus GST to said auditor. ii) cost of this application (Court fee Stamps and Notary Charges etc ') may be permitted t" ;';;i; ov t'" otrtl"r Liquidator from tl'e ay,af?lle funds of ,n" ""#o""niiin"i,qr'nl"tionl or Estate and Establishment Fund account if no fund is aviitauie in the
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.