Official Liquidator Of Vitta Mazda LTD. vs. N/A.

Held

The Court held that the prayer made by the Official Liquidator in paragraph 7(A) of the report could be granted. The Court considered the facts presented in the report, including the justification provided by the Chartered Accountants for their professional fees and the inclusion of GST. The Court found the expenditure to be permissible in the context of the liquidation proceedings. Consequently, the Court granted the prayer, allowing the Official Liquidator to make the payment of Rs. 1,18,000/- to M/s. Kirti J. Nayak & Associates. The report was accordingly disposed of. No specific provisions of the GST Act were discussed in detail, but the inclusion of GST in the professional fees was implicitly accepted.

Facts

The Official Liquidator of Vitta Mazda Ltd. filed a report seeking permission to pay Rs. 1,18,000/- to M/s. Kirti J. Nayak & Associates, Chartered Accountants. This amount represents professional fees for verifying claims of workers and creditors, including Goods and Services Tax (GST). The Chartered Accountants had verified 17 creditor claims and stated they spent over 60 days on the task, employing qualified professionals. The Official Liquidator initially questioned the bill amount, finding it high for the verification of secured and other creditors. However, after receiving a reply from the Chartered Accountants justifying their charges based on the time spent and the volume of papers, the Official Liquidator requested the Court's permission to make the payment from the company's funds.

Key Issues

1. Whether the Court should permit the Official Liquidator to pay Rs. 1,18,000/- to M/s. Kirti J. Nayak & Associates for professional services, including GST, in the liquidation of Vitta Mazda Ltd.? The Petitioner (Official Liquidator) argued that the Chartered Accountants had undertaken significant work, including verifying 17 creditor claims and spending over 60 days, justifying their fee. They relied on the detailed explanation provided by the Chartered Accountants regarding the time spent and the complexity of the verification process. The Petitioner sought permission to disburse the amount as per the bill submitted. The judgment does not record any arguments from a respondent side, as it is an Official Liquidator's report seeking court permission.