M/S.Targof Pure Drugs Limited (In Liqn.) vs. No Respondent
Original PDF →Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. Targof Pure Drugs Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 27.01.2026. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao & Co., Chartered Accountants. Furthermore, the Official Liquidator requested permission to meet the costs of the application, such as court fee stamps and notary charges, from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of company assets. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959.
Held
The Court allowed the application. Firstly, it took on record the half-yearly accounts of M/s. Targof Pure Drugs Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 27.01.2026. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Thirdly, permission was also granted to the Official Liquidator to make this payment from the available funds of the company (in liquidation) or from the Estate and Establishment Fund account if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court found the reasons stated in the accompanying affidavit to be satisfactory and considered the half-yearly accounts filed by the Official Liquidator.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of M/s. Targof Pure Drugs Limited (in liquidation) for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 27.01.2026, as required under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959? The Official Liquidator argued for the acceptance of these documents to proceed with the liquidation process. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao & Co., Chartered Accountants, as per the terms of engagement and standard practice in liquidation proceedings? The Official Liquidator contended that this payment is necessary for the audit of the company's accounts. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement? The Official Liquidator submitted that these expenses are incidental to the liquidation process and should be borne by the company's estate.
Sections Cited
Section 462, Companies Act, 1956, Rule 298, Companies (Court) Rules, 1959, Rule 306, Companies (Court) Rules, 1959
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE SMT.JUSTICE T. MADHAVI DEVI COMPAN} APPLICATION No.62 of 2026 IN COMPANY PETITION No.164 of 2004 DATE: 06.05.2026 Between: The Offlcial l.iquidator, attached to the Hon'ble }{igh Courr of Telangana and Andhra Pradesh. 1'' I:loor, Corporate Bhau'an, Bandlaguda, Nagole, Hyderabad 500068. .Applicant (,RDER This application is filed under Section 462 of Companies Act. 1956, read u,ith Rules 298 and 306 of the Companies (Court) Rulcs, 1959. sceking the follow.ing reliefs: i. fo take the hali-1early accounts of the subject companv (in liquidation) lbr rhe period fiom 01.04.2024 to 30.09.2024, along r,rith Indepcndent Auditors' Report dated 27.01 .2026 submittcd on 30.01.2026 by M/s.padmanabha Rao & Co., Chartered Accountants on record and permission may be TMDJ COMP A 62 ,2026 n cP 164 2004 2 accorded to make the payment of audit fee of Rs'500/- plus GST to the said auditor. ii. Cost of this application (Court fee Stamps & Notary Charges etc.,) may be permitted to be met out by the Official Liquidator from the available funds of the company (in liquidation) or Estate and Establishment Fund account if no fund is available in the company's account; subject to reimbursement of the same from the funds of company (in liqn) upon realization of assets of the Company (in liqn) whenever so happened and To pass such other order or orders as this Hon'ble CouIt may deem fit and proper in this regard.
Heard Sri J. Sreenadh Reddy, leamed counsel appearing for the Official Liquidator and perused the affidavit filed in support of this application.
Having regard to the reasons stated in the accompanying affidavit and upon considering the half-yearly accounts filed by the leamed Official Liquidator, this application is allowed with the lollowing:-
3 a The half'-:-early accounts of the subject company, which is in liquidation for the period from Ol .04.2024 to 30.09.2024, along with Independent Auditors, Report dated 27.01 .2026 submitted on 30.01.2026 by M/s.Padmanabha Rao & Co., Chartered Accountants are taken on record. b. Permission is accorded to the leamed Official I_iquidator to pa) an audit fee of Rs.500/- plus GST'to the auditor. Permission is also accorded to the learned Official l.iquidator to make trre said payment fiom the available funds of the Company (in liquidation), or from the Estate and Establishment Fund account if no fund is available in thc Cornpanv's account, subject to reimbursement fiom the funds o['Company (in liquidation) upon realization of c rts asset s. //// . C.V.MALLIKARJUNA VARMA JOINT REGISTRAR SECTION OFFICER 'fo, 1 The official Liquidator, Ir//s Targof Pure Drugs Limited (ln Liqn.), office at 1st floor,-l:'.. :, :rte Bhawan, Bandlaguda, Nagole, Hyderabad. " ]h9 I.eq'- .r: of Companies, Ministry ot C5rporai6 Affiirs, Government of lndia 2"0 Floor Corporate Bhawan'trL2g"f"Je";ifr;;Oa, Thattiannaram X[,39?#B[?.nasai Mandar nanga nti;i o]Iii"i%rrns"n, Si.i" pi,i l!?[.?,"",1?1113'?i;i#11fi 3,liiJ5i,ftF#:Tfl,",J,?",{+:,,i:?J{;5: f;dJ#;,,r., r\4ancrar Rans 2 J 6
The Section Officer, O.S.Section, High Court of Hyderabad for the State of Telangana
One CC to Sri J.Sreenath Reddy, Advocate for Official Llquidator, High Court for the S1:'te of Telangana(OPUC)
Two CD Cc;pies TPK /KA
HIGH COURT DATED: 0610512026 ORDER COMPA.No.62 o12026 IN C.P.No.1;-, i of 2004 ;f,rnr' 1 / tii[ 2026 P.r,l',_H{r.* ( ( ,i;t .2.. \11\i. ) J (vZ c) ^ ORDERING THE COMPANY APPLICATION b
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.