M/S. Sirsilk Limited (In Liqn.) vs. No Respondent

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COMPA/57/2026HC TelanganaGSTCNR HBHC01020982202606 May 2026Bench: T.MADHAVI DEVI7 pages
AI SummaryAllowed

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. Sirsilk Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. Padmanabha Rao & Co., Chartered Accountants, whose report was submitted on January 30, 2026. Additionally, the Official Liquidator requested permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.

Held

The Court held that the application should be allowed. Specifically, the Court ordered that the half-yearly accounts of M/s. Sirsilk Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 27, 2026, submitted on January 30, 2026, by M/s. Padmanabha Rao & Co., Chartered Accountants, be taken on record. Furthermore, permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Court also accorded permission for the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The reasoning was based on the accompanying affidavit and consideration of the filed accounts.

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 27.01.2026. 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fee of Rs. 500/- plus GST to the auditors. 3. Whether permission should be granted to meet the costs of the application from the available funds of the company or the Estate and Establishment Fund, subject to reimbursement. The petitioner, the Official Liquidator, argued for the allowance of the application based on the accompanying affidavit and the filed half-yearly accounts. The revenue or State did not appear to have made any arguments as this was an application by the Official Liquidator for administrative and financial permissions concerning 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
[ 321e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE SIXTH DAY OF MAY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SMT JUSTICE T.MADHAVI DEVI COMPANY APPLICATION No.57 of 2026 IN COMPANY PETITION NO: 57 of 1999 ln the matter of the Com panies Act. 1956 And ln the matter of M/s. Sirsilk Limited (ln Lion.) The Official Liquidator, attached to the Hon'ble High court of Telangana, and Andhra Pradesh, .1st floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad-500068 ...APPlicant Application Under Section 462 of the 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. Take the half-yearly accounts of the subject company (in liquidation) for the perrodfromol,o4'20241o30.09,2024'alongwithlndependentAuditors. Report dated 27.01 .2026 submitted on 30.01'2026 by M/s Padmanabha Rao & Co., Chartered Accountants on record and permission may be accordedtomakethepaymentofauditfeeofRs.SOO/-plusGSTtothe said auditor. ii. Cost of this application (Court fee Stamps and Notary Charges etc,) may be permitted to be met out by the official Liquidator from the available funds ofthecompany(inliquidation)orEstateandEstablishmentFundaccount 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 |iqn) whenever so happened ' This application coming on for orders, upon reading the Judge's summons and the affidavrt dated 23 03 2026 filed by Srr Akshaya Kumar Sahoo, Official Liouidator in s,.rpport of the Company Application and upon hearing the arguments of Sri J. Sreenadh Reddy, Counsel for the Official Liquidator for the Applicant

!E! - i4i5i::i.liF e&ii$ay IN TTIE HIGII COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE SMT.JUSTICE T. MADHAVI DEVI COMPANY APPLICATION No.57 of 2026 COMPANY PETITION No.57 of 1999 DATE: 06.05.2026 Between: The Offi cial Liquidator, attached to the Hon'ble High Court of Telangana and Andhra Pradesh, 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 Companies (Court) Rules, 1959, seeking the following reliefs: To take the half-yearly accounts ofthe subject company (in liquidation) for the period from 01.04.2024 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 on record and permission may be IN -t- COMPA_57 2026 in cP 57 lggs accord()d to make the payment of audit fee of Rs.500/_ plus GS f to the said auditor. ii. Cosr ol this application (Court fee Stamps & Notary Charges etc.,) ntay be permitted to be met out by the Official Liquidaror front the available funds of the company (in liquidat on) or Estate and Establishment Fund account if no fund is available in the company,s account; subject to reimbur;ement of the same from the lunds of company (in liqn) upon rcalization of assets of the Company (in liqn) wheneve,r so happened and To pass such other order or orders as this Hon,ble Court mav deem fit and proper in this regard.

2.

Heard Sri J. Sreenadh Reddy, learned counsei appearing for the Official Liouidator and perused the affidavit filed in support of this application

3.

Having r,:gard 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 follorving: -

=: !-:B!ri1"aw COMPA_57 2026 in cP 5',7 1999 a. The half-yearly accounts of the subject company, which is ln liquidation for the period from 01.04.2024 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 Liquidator to pay an audit fee of Rs.500/- plus GST to the auditor. c. Permission is also accorded to the leamed 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, subject to reimbursement fiom the funds of Company (in liquidation) upon realization of its assets. . M VIJAYA BHASKER // JOINT REGISTRAR //// S CTION OFFICER '1 . The Official Liquidator, M/s. Sirsilk Limited(ln Liqn ) office at 1st floor, Corporate Bhawan, Band laguda, Nag ole, Hyderabad -50006 8 2. fhe nies, MinistrY of Corporate Affairs, Government of lndia Registrar of Compa 2nd floor corPorate Bhawan, Nagole, Bandlaguda, Thattiannaram Village HaYathnagar M Pin Code 500 680 To, andal, Ranga ReddY District, Telangana State c-"lJ

3 The Region al Drrector, South Eastern Region, Ministry of Corporate A,ffarrs, ll j +locr Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village Heryathnagar Mandal, Ranga Reddy District Telangana State, Pin Code 500 6tr0 4 The Sectlon Offrcer O S Section, High Court at Hyderabad, for the State of Teiangana 5 One CC tc S'i J Sreenadh Reddy, Counsel for Official Liquidator, High Court at Hyderabac. 6 Two CD Copres Pfl(

HIGH COURT DATED: OGlOSl2026 ORDER COMPA.No.57 ot 2026 IN C.P. No. 5711999 ALLOWING THE APPLICATION h H s E c u 72 -ll FI IA 2[ o 26 I$ JU s 20 o ( 5o l.lt e\ .A t t D P s / 2-l 6 []6 1 c

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.