In The Matter Of M/S.Saibhya Oceanics PVT. Limited In Liqn vs. The Official Liquidator

Facts

The Official Liquidator (OL) for M/s. Saibhya Oceanics Pvt. Limited (in liquidation) filed a Company Application before the High Court of Telangana. The application sought to take on record the half-yearly accounts of the company for the period April 1, 2022, to September 30, 2022, along with the auditor's report dated June 17, 2024, submitted by M/s. KBS and Associates. The OL also requested permission to pay the auditor's fee of Rs. 500 plus GST, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and heard by the Court.

Held

The Court accepted the prayer of the Official Liquidator. It ordered that the half-yearly accounts of M/s. Saibhya Oceanics Pvt. Limited (in liquidation) for the period from 01.04.2022 to 30.09.2022, along with the auditor's report dated 17.06.2024 submitted by M/s. KBS and Associates, be taken on record. The Court also granted permission for the payment of the audit fee of Rs. 500 plus GST to the said auditor. Furthermore, the Court permitted the Official Liquidator to meet the costs of the application, including court fee stamps and notary charges, from the available funds of the company in liquidation or the Estate and Establishment Fund if no funds were available in the company's account. The application was ordered accordingly.

Key Issues

1. Whether the Court should take on record the half-yearly accounts and auditor's report of the company in liquidation for the period 01.04.2022 to 30.09.2022, as submitted by the Official Liquidator. (Procedural/Administrative Issue) 2. Whether permission should be granted to pay the audit fee of Rs. 500 plus GST to the auditors, M/s. KBS and Associates. (Financial/Administrative Issue) 3. Whether the costs of the application, including court fee stamps and notary charges, can be met from the company's funds or the Estate and Establishment Fund. (Financial/Administrative Issue) Arguments: Petitioner (Official Liquidator): The OL presented the half-yearly accounts and auditor's report for record and sought approval for payment of audit fees and application costs, as per the Companies Act and Rules. No specific arguments were recorded against this prayer. Revenue/State: No arguments were recorded from the Revenue or State in this matter.