Pradeep Kothari Vs Official Liquidator (Madras High Court)
The Madras High Court considered an application seeking permission to appoint an Advocate specialising in income tax matters to examine the books of accounts, financial records and other available documents of a company in liquidation. The proposed Advocate was also to facilitate a settlement with the Income Tax Department and submit a detailed report to the Court after completing the examination, verification, coordination and settlement process.
The applicant submitted that a report filed by the Official Liquidator in September 2025 had recorded a claim of Rs.6,29,73,549 by the Income Tax Department. According to the applicant, verification showed that the assessment also covered a period subsequent to the order of liquidation and the appointment of the Official Liquidator. It was therefore submitted that the matter required engagement with the Income Tax Department and that appointing an Advocate with expertise in income tax practice would be in the beneficial interest of the company in liquidation.
The applicant further stated that the expenses for engaging the Advocate could be borne by the applicant. The Madras High Court heard both sides and noted the specific statement made by the applicant’s counsel, as reflected in the affidavit filed in support of the application.
