The Assistant Official Liquidator v. No Respondent
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD TUESDAY,THE TWENTY NINTH DAY OF DECEMBER TWO THOUSAND AND TWENTY PRESENT THE HONOURABLE SRI JUSTICE A.RAJASHEKER REDDY COMPANY APPLICATION NO: 62OF 2020 IN RCC No. 2 of '1995 ln the matter of the Companies Act, 1956 And ln the matter of M/s. A.P. Steels Ltd. & Various Companies ( ln Liqn.) Between:
The Assistant Official Liquidator, For the States of Telangana and Andhra Pradesh, Hyderabad.
...APPLICANT Application Under Section 457 & 462 of the Companies Act, 1956 read with Rules 298, 300, 302, 304, 306 & 309 and further read with Rule 9 of the Companies ( Court ) Rules, '1959 praying that the Hon'ble Court may be pleased to take the affidavit and facts stated here in on record. approve the allocation of 1 15 Companies in liquidation to the 4 Chartered Accountants viz.1). tr//s. IMurthy and Kanth 2). M/s. Padmanabha Rao and Co., 3). M/s. K.B.S. Associates 4) M/s. Dutt and Associates Chartered Accountants on equal basis or pass such other order as this Hon'ble Court may deem fit and proper for audit of Half Yearly Accounts for the period from 01 10412020 to 30/09/2020.
permit the Official Liquidator to file the Audit Report on the Half yearly accounts for the period from 0110412020 to 3010912020 in respect of 115 Companies in liquidation before this Hon'ble Court within 60 days from the date of receipt of the same from the Chartered Accountants, so allotted. permit the Official Liquidator to file an Affidavit of no Receipts or Payments in respect of 1 13 Companies in liquidation pursuant to Rule 300 of Companies (Court) Rules, '1959.
Permit the Official Liquidator to pay the fees to the said chartered Accountants in accordance with the order of this Hon'ble Court dated 03-012014 made in C.A. No. 6 I 2014 in RCC No. 2 / 1995 or as approved by this Hon'ble Court.
Permit the payment of fee to Auditors out of the funds of the respective Companies in liquidation and in case of companies where sufficient funds are not available, it may be permitted to pay from the funds of the Estate and Establishment Fund Account of the Official Liquidator, subject to reimbursement of the same from the funds of such Companies upon realization of those Companies assets if any. Order that the cost of this application and miscellaneous cost do come out of the funds of the respective Companies in liquidation. lt.
v .
This Application coming on for orders upon reading the Judge's Summon and the affidavit dated: 23-12-2020 and filed by Sri D. Suiesh Asst. Official Liquidator, in support of this Application and upon hearing the arguments of Sri J. Sreenadh Reddy, Learned Counsel for the Official Liquidator on behalf of the Applicant. The Court made the following Order :
HON'BLE SRI JUSTICE A.RAJASHEKER REDDY Company Application No.62 of 2O2O ORDER:
This application 1S filed by the official liquidator seeking reliefs as follows:- i) take the affidavit and facts stated herein on record, ii) do the allocation of 1 15 Companies in liquidation to the 4 Chartered Accountants viz: 1) M/s Murthy & Kanth 2) M/s. Padmanabha Rao & Co.,3) M/s K.B.S. Associates 4) M/s Dutt & Associates on equal basis or pass such other order as this Hon'ble Court may deem fit and proper for audit of Half yearly Accounts for the period from O 1.04.2020 to 30.09.2020, iii) permit the Official Liquidator the Audit Reports of the Ha-lf Yearly accounts for the period from Ol.O4.2O2O to 30.09.
2020 in respect of 115 Companies in liquidation before this Honble Court within 60 days from the date of receipt of the same from the Chartered Accountants so allotted, iv) permit the Official Liquidator to frle an AIlidavit of 'no Receipts or Payments' in respect of 113 Companies in liquidation pursuant to Rule 300 of Companies (Court) Rules, 1959, v) permit the Official Liquidator to pay the fees to the said Chartered Accountants in accordance with the order of this Honble Court dated 03.01.2014 made in C.A.No.6 of 2014 in RCC No.
viii) pass such further or other order or orders as t}.is Hon,,ble Court may deem fit and proper in the circumstances of the case."
2, Learned counsel for the official liquidator has annexed copy of order passed by this court appointing auditors to audit the half yearly accounts of various companies in liquidation including the modalities for fees to be paid with respect to companies under audit by categorizing the companies with respect to the number of transactions in each company. He also further submits that the order dated 03.01.2014 in C.A.No.6 of 2Ol4 in RCC No.2 of 95 annexed at page Nos.13 to 15 of the application squarely covers the subject matter and the similar order may be passed in this case.
3. In view of above facts and circumstances and similar order being passed by this Court and also on consideration of the report of the official liquidator, I find that audit work required to be done by the auditors is similar with respect to each company, whether or not there are transactions, and in case there are no transactions in the accounts of particular company, the auditors' work may be less compared to others. However, for the purpose of the work to be carried out, in my view, a group of about 30 companies are to be distributed for each of the auditor.
4. The official liquidator, therefore, is permitted to seek assistance of the four auditors' firms as listed in paragraph 4 of the Affi.davit by altotting to them approximate 30 companies each
as shown in the annexures and pay to each auditor a fee quantified @ Rs.a0o/-(Rupees four hundred only) per company and submit the audited accounts to the court for approval. The company Application is, accordingly, ordered. Miscellaneous petitions, if any, pending shall stand closed. Sd/.K.GANGADHAR RAO JOINT REGISTRAR @ SECTION'OFFICER To //TRUE COPY//
1. The Official Liquidator, High Court at Hyderabad for the state of Telangana and the State of Andhra Pradesh , 1st floor corporate Bhawan, Nagole, Bandlaguda Thattiannaram Village, Hayathnagar lvlandal, Ranga Reddy District Telangana State Pin Code 500 680.
2. The Registrar of Companies, IMinistry of Corporate Affairs, Government of lndia 2nd Floor Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village, Hayathnagar Mandal, Ranga Reddy District, Telangana State Pin Code 500 680.
3. The Regional Director, South Eastern Region, I\/inistry of Corporate Affairs, 3'd floor Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village Hayathnagar Mandal, Ranga Reddy District Telangana State Pin Code 500 680.
4. The S.O. O.S. Section , High Court of Judicature at Hyderabad, for the State of Telangana.
5. One CC to Sri J. Sreenadh Reddy, learned counsel for Official Liquidator, High Court at Hyderabad.
6. Two C.D.Copies t$)"
HIGH COURT ARRJ DATED:2911212020 s HE
ORDER
2 5 .tAtu Z02t U COMPANY APPLICATION No.62 of 2020 + .t) IN RCC NO.2 0F 1995 ORDERING THE COMPANY APPLICATION.