In The Matter Of M/S. Nest Enterprises Private Limited In Liqn vs. The Official Liquidator

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. Nest Enterprises Pvt. Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022. The application also sought permission to pay an audit fee of Rs. 500 plus GST to the auditor, M/s. KBS and Associates. The application further requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The Court perused the auditor's report and heard the arguments of the Official Liquidator's counsel.

Held

The Court accepted the prayer made by the Official Liquidator. It ordered that the half-yearly accounts of M/s. Nest Enterprises Pvt. Limited (in liquidation) for the period from April 1, 2022, to September 30, 2022, along with the Auditor's Report submitted by M/s. KBS and Associates, be taken on record. Consequently, the Company Application was ordered accordingly. The judgment does not explicitly mention the specific reasoning for accepting the accounts or granting permission for the audit fee payment, other than stating that the prayer was accepted after perusing the auditor's report. The operative direction was to take the accounts and report on file and dispose of the application as ordered. No issues were expressly left undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period April 1, 2022, to September 30, 2022, along with the auditor's report, as submitted by the Official Liquidator? 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fees amounting to Rs. 500 plus GST to the auditor? Petitioner's Arguments: The Official Liquidator, representing the company in liquidation, argued for the acceptance of the half-yearly accounts and the auditor's report. The Liquidator also sought permission to pay the audit fees and cover the application costs from the company's funds or the designated fund. No specific statutory provisions or precedents were cited in the judgment for the petitioner's arguments regarding the acceptance of accounts or payment of fees, beyond the mentioned Companies Act and Rules. Revenue's Arguments: The judgment does not record any arguments presented by the revenue or any opposing party. The matter appears to have been considered ex parte or without contest from the revenue's perspective.