RCC/2/1997 of BIFR Vs M/S.GODAVARI CERAMICS LTD on 29 November 1998

ORDER:

This application is filed for approval of panel of charteredaccountants for preparation of annual statements relating to all thecompanies in liquidation; for fixing the fees of chartered accountantsso empanelled, as per the present cost of living; for granting time forfiling annual accounts, and to order costs of this application to comeout of the funds of the companies in liquidation.

In his report dated 17.09.2014, the Official Liquidator has statedthat the Assistant Official Liquidator has sent letters to 15 firms on26.08.2014, requesting them to convey their willingness forpreparation of annual statements in terms of Rule 311 of theCompanies (Court) Rules, 1959 read with Section 551 of theCompanies Act, 1956, that in response thereto, eight charteredaccountants have conveyed their willingness. It is further stated in thereport that six auditors have voluntarily furnished their willingness, byway of letters. The report has, thus, mentioned, in all, 14 names of thechartered accountants.

Mr. M. Anil Kumar, learned counsel for the Official Liquidator,stated that the panel, if approved, will be a general panel for taking upthe work of audit/preparation of accounts for the post liquidation periodof all the companies ordered to be wound up by this Court. He hasfurther stated that as of now, the panel consists of five charteredaccountants and that it will be feasible if ten more charteredaccountants are added to the panel. He has requested that out of 14names mentioned in the report of the Official Liquidator, four names may be excluded and that they are 1) M/s. Laxminiwas & Co., Hyd., 2)M/s. G. Sai Lekhraj & Associates, Hyd., 3) M/s. Venkata Rama &Associates and 4) M/s. A.G. Hegde & Co. This request of the learnedcounsel for the Official Liquidator is accepted and, accordingly, thesaid names have been deleted from the panel and the followingnames are directed to be included in the panel:

1) M/s. A.V. Ratnam & Co., Hyd.,

2) M/s. N. Saibaba & Co., Hyd.,

3) M/s. Syed & Syed, Hyd.,

4) M/s. K. Suseela & Co., Hyd.,

5) M/s. S.V. Rao Associates, Hyd.,

6) M/s. Deva & Co., Hyd.,

7) M/s. Vijaya Bhaskar & Co.,

8) M/s. CVS. Balachandra Rao & Co.,

9) M/s. Kapasi Bangad & Co.,

10) M/s. CA. Vijaya Kumar KLP.

With respect to the fees of the chartered accountantsempanelled, the Deputy Official Liquidator, in his affidavit filed insupport of the application, has stated that the fees of the charteredaccountants was fixed by order dated 10.09.2008 in CompanyApplication No.175 of 2008 in RCC.No.2 of 1997 as under:

i)At the rate of 100/- per account where there is norealization and expenditure;realization and expenditure;

ii)at the rate of Rs.200/- per account where there isno realization but there is expenditure;no realization but there is expenditure;

iii)at the rate of Rs.700/- per account, where therealization does not exceed Rs.50,000/- andrealization does not exceed Rs.50,000/- and

iv)at the rate of Rs.900/- per account, where therealization exceeds Rs.50,000/-.realization exceeds Rs.50,000/-.

Learned counsel for the Official Liquidator submitted that due tolapse of six years and steep increase in the cost of living, the fees inrespect of each item mentioned above may be doubled. This Court finds this request reasonable. Accordingly, the fees mentioned initems (i) to (iv) reproduced above is doubled. The Official Liquidator isaccordingly permitted to pay the fees fixed as above.

Arguments

With regard to the grant of time for filing annual accounts, thelearned counsel for the Official Liquidator submitted that the office ofthe Official Liquidator has received all the annual accounts, that theOfficial Liquidator will entrust finalization of annual accounts to therespective chartered accountants and that some reasonable time maybe granted for filing the annual accounts. The Official Liquidator isgranted six months time for this purpose. It is further directed that thecosts of this application do come out of the assets of the respectivecompanies in liquidation.

The company application accordingly stands disposed of.

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C.V. NAGARJUNA REDDY, J

22[nd] September, 2014 IBL