CS Attached to Office of OL Entitled to Remuneration as per Govt. Policy for Young Professionals in MCA

Case Details: O.L. of Various Companies (In Liquidation), In re - [2023] 152 taxmann.com 433 (HC-Gujarat)

Judiciary and Counsel Details

• • Nikhil S. Kariel, J.
  • Bhoomi M. Thakore for the Applicant.

Facts of the Case

In the instant case, the Official Liquidator (OL) filed an instant report, requesting the Court to increase consolidated remuneration, which was being paid to the Company Secretary attached to the office of the Official Liquidator. The request was in line with the monthly remuneration being paid to young professionals like Company Secretaries, Chartered Accountants, etc., as per the terms of the Circular of the Ministry of Corporate Affairs dated 30-11-2018.

It was submitted that young professionals with office of OL cover work on a large number of issues, like preparation of draft reply/representation of OL in various matters, preparation of draft minutes of meetings held with members of secured creditors and workers union of companies (In Liquidation), search reports of ROC records, scrutiny of Statement of Affairs filed by ex-directors of company etc. and work related to cash section like accounting, audits and bank related works and work related to FDR section.

It was further submitted that at present, there was only one Company Secretary working with the office of OL since 1-5-2018, earning a consolidated salary at the rate of Rs.30,000 and whereas such remuneration was being paid from funds available with OL under the head of ‘Common Pool Account’.

Furthermore, the Company Secretary attached to the office of OL for the High Court of Karnataka was also being paid remuneration as per terms of the Office Memorandum (OM) dated 30-11-2018.

The High Court observed that considering submissions made by OL and also considering OM dated 30-11-2018, a request made by OL appeared to be justified and in line with the Policy of the Government of India for paying remuneration to young professionals engaged with the Ministry of Corporate Affairs.

High Court Held

The High Court held that considering the fact that the same practice was being followed in the High Court of Karnataka, it was deemed appropriate to direct allowing of this Report and it was further directed that the Company Secretary attached with the office of OL shall be henceforth entitled to be paid remuneration in terms of OM dated 30-11-2018.