M/S. A.P. Steels LTD. And Various Companies (In Liqn) vs. No Respondent
Facts
The Official Liquidator, representing various companies in liquidation, filed a Company Application before the High Court of Telangana. The application sought approval for the allocation of 94 companies in liquidation to three Chartered Accountant firms for the audit of their half-yearly accounts for the period from 01.10.2022 to 31.03.2023. The Official Liquidator also requested permission to file audit reports, affidavits of no receipts or payments for certain companies, and to pay the auditors' fees. The application was supported by an affidavit and argued by the learned counsel for the Official Liquidator. The Court had previously passed a similar order in another Company Application (C.A. No.8 of 2022) concerning the appointment of auditors for companies in liquidation.
Held
The Court held that the audit work for the period 01.10.2022 to 31.10.2023 was required for each of the 94 companies in liquidation, irrespective of whether there were transactions. The Court noted that the three Chartered Accountants had expressed their willingness to undertake this work. Consequently, the Court permitted the Official Liquidator to seek the assistance of these three auditors by allotting them approximately 31 to 32 companies each. The Court also quantified the fee for each auditor at Rs. 500/- plus GST per company and directed the Official Liquidator to submit the audited accounts for the Court's approval. Furthermore, the Official Liquidator was directed to ensure, to the extent possible, that the auditors appointed had not audited the accounts of the same companies in the previous financial year. The Company Application was accordingly ordered.
Key Issues
1. Whether the Court should approve the allocation of 94 Companies in liquidation to three specified Chartered Accountants for the audit of their half-yearly accounts for the period from 01.10.2022 to 31.03.2023, and if so, in what manner? (Question of law and fact, concerning the Official Liquidator's duties under the Companies Act, 1956 and Companies (Court) Rules, 1959). Petitioner's Contention: The Official Liquidator, through their counsel, argued that three Chartered Accountants have expressed willingness to act as auditors. They relied on a previous order of the Court in C.A. No.8 of 2022, where auditors were appointed for companies in liquidation in equal numbers, and sought a similar distribution of work. Revenue/State's Contention: No specific arguments were recorded for the revenue or state in this matter.
Sections Cited
Section 457, Section 462, Rule 298, Rule 300, Rule 302, Rule 304, Rule 306, Rule 309, Rule 9
AI-generated summary — verify with the full judgment below
[ 3166 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD SATURDAY, THE SIXTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR COMPANY APPLICATION NO: I 630F 2023 ln R.C.C.No.2 of 1995 ln the matter of the Companies Act, 1956 And ln the matter of M/s. A.P. Steels Ltd. and Various Companies (in liqn)
Between: The Official Liquidator, for the State of Telangana and The State of Andhra pradesh ...APPELLANT Company Application Under Sections 457 and 462 of the Companies Act, 1956 r/w Rules 298, 300, 302, 304, 306, & 309 and further read with Rute 9 of the Companies (Court) Rules, 1959 praying for an order to: i) take this affidavit and facts stated herein on record. ii.approve lhe allocation of 94 Companies (in liquidation) to 3 Chartered Accountants viz., 1). M/s.Murthy and Kanth, Chartered Accountant, Hyderabad 2). M/s. Padmanabha Rao and Co., Chartered Accountant, Hyderabad 3). M/s. K.B.S. Associates, Chartered Accountant, Hyderabad proportionately or pass such other order(s) as this Honorable Court may deem fit and proper for audit of Half yearly Accounts for the period from 01.10.2022 to 31.03.2023. iii) permit the Officia
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