Allowed

The Official Liquidator, v. -

Telangana HC1 Jul 2014COMPA/767/2014

Case brief

AI extract

What is this about?

Official liquidator sought approval for allocating auditing of 239 liquidated companies to five firms and permitting filing of audit reports or 'no receipts' reports for 70 companies within 60 days, with fees payable from company funds.

What did the court decide?

Approval of company allocation to auditors; permission to file audit reports within 60 days; permission to file 'no receipts' reports; directive to pay auditor fees from company funds.

The Official Liquidator, Vs - — Insolvency and Bankruptcy | Telangana HC (2014)

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THE HON’BLE SRI JUSTICE C.V. NAGARJUNA REDDY

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COMPANY APPLICATION No.767 of 2014

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IN R.C.C.No.2 of 1995

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Dated: 01.07.2014

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Between:

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The Official Liquidator, High Court of Judicature, at Hyderabad.

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.. Applicant.

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Counsel for the applicant: Mr. M. Anil Kumar

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The Court made the following:

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ORDER:

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This application is filed for the following reliefs:

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“i) take the affidavit and facts stated herein on record;

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ii) approve the allocation of 239 companies to 1) M/s. Murthy & Kanth 2) M/s. Padmanabha Rao & Co. 3) M/s. PSN. Ravi Shankar & Associates 4) K.B.S. Associates 5) M/s. Sarathy & Balu equitably in view of the orders dated 22-06-2010 in C.A.No.469/2010 in RCC No.2/1995, for auditing of half yearly accounts for the period from 01-10-2013 to 31-032014 relating to the accounts of companies in liquidation;

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iii) permit the Official Liquidator to file the Audit Report of the half yearly accounts for the period from 01-10-2013 to 31-03-2014 in respect of 239 companies in liquidation before this Court within 60 days from the date of receipt of the same from the Chartered Accountants;

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iv) permit the Official Liquidator to file an affidavit of ‘no receipts or payments’ in respect 70 companies in liquidation pursuant to Rule 300 of the Companies (Court) Rules, 1959;

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v) permit the Official Liquidator to pay the fees to the above Chartered Accountants in accordance with the order dated 03-01-2014 made in C.A.No.6/2014 in RCC.No.2/1995;

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vi) permit the payment of the fee to the Auditors out of the funds of the respective companies in liquidation or where sufficient funds are not available, out of the Estate and Establishment Fund Account of the Official Liquidator, however, subject to reimbursement from the funds of such companies as and when assets are realized; and

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vii) order that the costs of this application do come out of the funds of the respective companies.”

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This Court in Company Application No.6 of 2014 in R.C.C.No.2 of 1995 passed order on 03.01.2014 permitting the Official Liquidator to seek the assistance of five auditors’ firms as listed in paragraph 3 of the Official Liquidator’s report placed before the Court, allocating to the said firms approximately 50 companies each, and pay to each auditor

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a fee quantified at Rs.400/- per company and submit the audited accounts to the Court for approval.

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In the affidavit filed by the Deputy Official Liquidator in support of the present application, he has stated that out of 309 companies under liquidation, 70 companies had no receipts or payments and, therefore, they were not referred to the Chartered Accountants for preparation of half-yearly accounts and that the remaining 239 companies were allocated among the five auditors for auditing halfyearly accounts for the period from 01.10.2013 to 31.03.2014. He has, therefore, sought for approval of the said allocation, grant of permission to the Official Liquidator to file audit reports of half-yearly accounts in respect of the 239 companies for the period from 01.10.2013 to 31.03.2014 before this Court within 60 days from the date of receipt of the audit reports and to file a report of “no receipts or payments” in respect of 70 companies in liquidation as per Rule 300 of the Companies (Court) Rules, 1959, and also for permission to pay the fees to the five Chartered Accountants in accordance with the order dated 03.01.2014 in Company Application No.6 of 2014 in R.C.C.No.2 of 1995.

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In the facts pleaded by the Deputy Official Liquidator, the application is allowed by granting all the prayers vide (i) to (vii) mentioned above.

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________________________ C.V.NAGARJUNA REDDY, J 1^st July, 2014 IBL

The Official Liquidator, v. -

Case brief

What is this about?

What did the court decide?

The Official Liquidator, v. -

Case brief

What is this about?

What did the court decide?

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