M/S.Merbanc Financial Services 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 (No. 80 of 2026) in C.P. No. 113 of 2002. The application sought to take on record the half-yearly accounts of a company in liquidation for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated February 9, 2026. Additionally, the Official Liquidator requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth, Chartered Accountants. The application also sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The Official Liquidator presented the application and affidavit in support.
Held
The Court considered the application filed by the Official Liquidator under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. Having regard to the reasons stated in the accompanying affidavit and upon considering the half-yearly accounts filed by the Official Liquidator, the Court allowed the application. Specifically, the Court ordered that the half-yearly accounts for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 09.02.2026, be taken on record. Permission was also accorded to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditor. Furthermore, permission was granted to make this payment from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement upon realization of the company's assets. The Court also permitted the Official Liquidator to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The ratio decidendi is that the Court has the power to permit the Official Liquidator to incur necessary expenses for the proper winding up of a company, including audit fees and application costs, from the company's funds or designated funds, provided it is in the best interest of the liquidation process.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 09.02.2026. 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. Murthy & Kanth, Chartered Accountants. 3. Whether permission should be granted to the Official Liquidator to meet the costs of the application from the available funds of the company (in liquidation) or the Estate and Establishment Fund, subject to reimbursement. Arguments presented by the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the application and supporting affidavit, seeking the aforementioned reliefs. No specific arguments were recorded beyond the presentation of the application and the reasons stated in the affidavit. The revenue or State did not appear to have made any arguments as this was an application by the Official Liquidator for procedural matters related to a company in liquidation.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Application Under Section 462 of Companies Act' 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules 1959 praying that this Hon'ble Court may be pleased to : i.takethehalf-yearlyaccountsoftheSubjectcompany(inliquidation)forthe period f rom O r oa' Z?li?io'"K.ri}.-ZOii'. alono with - I ndependent Aud itors' Report dated og.o-i7o-z'o't'otiit"o on '11 o2'i026 by M/s Murthv'& Kanth' chartered n""orno-.nf,ln-i"iorJ "na permis_sion may be accorded to make the payment ot a'Oit ieoot Rs 500/- plus GST to the said auditor' ii. cost of this applrcation (Court fee Stamps and Notary Charges etc ') may be permitted t" b" ,"t;;i;vii.r"btt'""r [iquid"tot from the available funds of the companv (i. li;;'d;ffii ; itiate ano.establishment Fund account if no fund is available in the company's account' srrbiect to reimbursement of the same from the funds of Company (in liqn) upon realization of assets of the Corprny (in liqn), whenever so happened' This applil.ation coming on for orders' upon reading the Judge's summons and the affidavit dated 3'1 .032026 filed by Sri Akshaya Kumar Sahoo' Official Liquidator attached to the High Court for the State of Telangana' in support of the Company Application and upon hearing the arguments of Sri J Srinath Reddy' Advocate for the ...APPLICANT
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE, HON'BLE SMT.JUSTICE T. MADHAVI DEVI COMPANY APPLICATION No.80 0F 20?6 C.P-No.113 OF 2002 DATE:06.05.2026 Between: The Offi cial Liquidator,, Attached to the Hon'ble High Court of 1'elangana and Andhra Pradesl , l" Floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad - 500068. .Applicant ORDER This application is filed under Section 462 of Companies Act, 1956, read with Rules 298 and 306 of the Compz'nies (Court) Rules, 1959, seeking the following reliefs: i. To take the half-yearly accounts of the subject company (in liquidation) for the period from 0l-04.2024 tc 30'09'2024, along with Independent Auditors' Report dateJ 09'02'2026 submitted on 11.02.2026 by M/s. Murthy & Kanth', Chartered Accountants on record and permission may be IN COMPA_E0 2026 in cP I 13 2002 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 t'om 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 Court may deem ht and proper in this regard.
Heard Sri J. Sreenadh Reddy, learned 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:- .rl COMPA-80- 2026 in cP lll 2002 The half-yearly accounts of the subject comparty' which is liquidation for the period from 0l '04'2024 to 3 a 1n To, 30.09.2024, along with Independent Auditors' Report dated 09.02.2026 submitted on 11'02'202'5 by \zVs' Murthy & Kanth., Chartered Accountants a'e taken on record. b. Permission is accorded to the learned Official Liquidator to pay an audit fee of Rs.500l plus GST to the auditor c. Permission is also accorded to the leanred Official Liquidator to make the said payment from the available funds of the Company (in liquidation), or from the Estate and Establishment Fund account if no fund is available in the Company's account, subj ect to reimbursement from the funds of Company (in liquidation) upon lealization of its assets. N.SRIHARI //rRUE coPY// i,!1tt'I "t9'':-T5- \ \ sEcrloN oFFlcER 'lt::f#i",*^^.i:H!,#iitrl;i+T,"-H,ii#t**:TJ# ,il:"H;?i.i;;;ic.o.Tx*??$&:i9."{ff,J+:tg:#?t*:%ils:ylt;u;;, 'r1,,:,l!.T;3#Rlj3:?f .6;:1E"+1{:rs::::"'"^lllgf -orcorporareAnarss- -l;ng"*gtifr,P**-trx*f$:;:ii1li{{i'tiffi [i:e::"* Telanqana
One CC to Sri J Srinath R-eddy' Advocate for official Liqttidator' High Court for - in"-si"i" ot TelanganaloPUC) ^ 'r,.,^ an f:.rnies
HIGH COURT DATED:06/0s/2026 ORDER C.A.No.80 ot 2026 IN C.P.No.113 ot2002 ALLOWING THE COMPANY APPLICATION WITHOUT COSTS. (oR .tHE S 14 01 t'r 2026 Uo (- P z.o A ,*,o\r?t.\l n .\ fa^nr ' ''t' t 8 .pR1'gL &* I I i
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.