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

COMPA/106/2026HC TelanganaGSTCNR HBHC01026042202606 May 2026Bench: T.MADHAVI DEVI6 pages

AI SummaryAllowed

Facts

This matter concerns Company Application No. 106 of 2026, filed by the Official Liquidator attached to the High Court of Telangana and Andhra Pradesh. The application sought to take on record the half-yearly accounts of M/s. Nagarjuna Finance Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 09.02.2026. Additionally, the Official Liquidator sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth., Chartered Accountants, and 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 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 held that the half-yearly accounts of the subject company, M/s. Nagarjuna Finance Limited (in liquidation), for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 09.02.2026, should be taken on record. Permission was accorded to the learned Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, permission was 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, with the condition of reimbursement from the company's funds upon realization of its assets. The Court allowed the application in terms of the reliefs sought.

Key Issues

1. Whether the half-yearly accounts of the company (in liquidation) for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report, should be taken on record. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the chartered accountants. 3. Whether the costs of the application can be permitted to be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund account, subject to reimbursement. The petitioner, the Official Liquidator, argued for the acceptance of the accounts and the payment of fees and costs as outlined in the application. The revenue or State did not appear to have made any arguments, as the judgment indicates only the arguments of the Official Liquidator were heard.

Sections Cited

Section 462, Rule 298, Rule 306

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

iN TI ,IL] I IICF{ COUttI FOR THE STATE OF TELANGANA AT HYDERABAD \\.t]D\FSD,\Y, ItIE SIXTI] DAY OF MAY I I'VO't HC)I]SANt) ANI) TWENTY SIX PRESEI..WT THE HoNOURABLE SMT. IUSTICE T.MADHAVI DEVI CO[,{PANY APPLICATION No.105 of 2025 In rl. C.P.No.80 of 2004 In tire nratter of Companies Act, 1956 Ancl I11 tilc nlartcrs of VI7's. x-agarjuna Finance Limited (ln Liqn.) r )i r(i.ti I rr1u;r1.rLor', attacircrl to lho I Iitlh Court of Telangana and Arldl-rra Praclesh, 1't . i. , )r':r{rr.(ltr\ Illt.rrr .r:r, B.-, ir.l la s ueia, \a;1ole, Hvc{erabad - 500068. .. Applicant Like the h.rli-r'eariv accourlts r)r the sulrject company (in liquidation) for thc pcriorl l-rom 01 .0-+.2021 to 30.09.2024, along with lndependcnt Auditors' Report rl,rtt't1 i)tl.()2 1(12(r sulrrlirtcrl orr 11.02,2026 by M/s. Murthy anci Kanth., ( ir,r'i,-,: r,,.i Acr:r ru i.rt.in ts on recorrl antl perrnission mav be accorded to make the i',.r', :iir-iri Lrt.rur,iit ir.c ol Rs.50()/- plus GST to the saicl auclitor. cosl oi tl-ris aprplication (Coult iee Stamps and Notary Charges etc.,) mav bc ii.nriltrri to Lrr i.ncl or,r: br- tirr: Official Liquiclator from available funcls of the ! r)nrIir-L\ (ir lirluicla.tiLrn) ,.r:-Estaic anci Establishment Fund account if no fu ne'l is .., rll,tl--ll irr t]rt, c,.,iril-r:ir.r\"s accrlllnti sub,ect to reimbursement of the satne fiom rL.. iiiLrrls .f C( )r'rl't-r.-r n \ (iI liqn) uport realization of assets of the Company (in liqn), t\'l1enc\'('r so happenecl ancl .\.pplication lilc.I unticr Scction J62 of tht' Cor-npanies Act, 1956 read with Rule 298 anr] l',, -'()o 1ri lllu (-1r1l1i).11rr (Cr-.r-rri) R,.rl.:s. .'1959 praving that this Horr'ble Court mav be t, ir .'.t{'.i a ' ;t f ir:s .r|1rlir:.rtirrn c(rnring irr.t ior-c,rr{crs, upon rearling the Juclge's summons ancl the : '.i.','.,! .iri,-r1 ll tl-r lt)2o tilccl i-.r Sri Akshava Kurnar Sahoo, Official Liquidator attacheti .. L j i' lirgi: i'i,,,n i ior tht' Sr:le ,ri Telanqana. in support of the Company Application antl iip()n ircarins thc arrsumcnts of Sri J.Srinath Reddr,, Adr.ocatc for the Official I,rriLi11.rti,r,' Applicar,t. i irs f111111 rr:;,Le the fcilior.r'!ng: {)I{.DER IN THE HIGH COURT FOR THE STATE OF TEI-ANGANA AT HYDERABAD THE HON'BLE SMT.JUSTTCE T. MADHAV] DEVI COMPANY APPLICATION No.l 06 0F 2026 IN C.P.No.80 OF 2004 DATE:06.05.2026 Between: The Official Liquidator. Attached to the Hon'ble High Court of Telangana and Andhra Pradesh, l " Floor, Coqporate Bhawan, Bandlaguda, Nagole, Hyderabad 500068. .Applicant

ORDER This application is filed under Section 462 of Companies Act, 1956, read with Rules 298 and 306 ot the Companies (Coufl) Rules, 1959. seeking the follow.ing reliefs: To take the half'-yearly accounts of the subject :ompany (in liquidation) for the period from 01 .04.2024 to 30.09.2024. along with Independent Auditors' Report datec Og.02.2026 submitted on & Kanth.. 11.02.2026 by' M/s. Murthl Chartered Accountants on record and permission may be TMDJ COMPA 106 2026 in cP 80i2004 2 accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. ll. 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 E,stablishment 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 Court may deem fit and proper in this regard.

Heard Sri J. Sreenadh Reddy, leamed counsel appearing for the Official Liquidator and perused the affidavit t'i1ed in support ot- 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 followins: -

T \1DJ co\t P,\ 106 1026 in cP 80 100.1 The half-yearly accounts of the subject company, which is 3 tn liquidation for the period from 01 .04.2024 to 30.09.2024, along with Independent Auditors' Report dated 09.02.2026 submitted on ll.0Z.20i:6 by M/s Murthy & Kanth., Chartered Accountants ere taken on record. b. Permission is accorded to the learned Official Liquidator to pay an audit fee of Rs.500/- plus GST to tht: auditor. c. Permission is also accorded to the lear:.red Offlcial Liquidator to make the said payment from the available funds of the Company (in liquidation), or frc'm the Estate and Establishment Fr.nd account if no fund i:; available in the Company's account, subject to reimbursement from the funds of Company (in liquidation) upon :ealization of rts assets. // rRUE C?PY // . M VUAYA BHASKER JOINT REGISTRAR ./- ad \-J SECTION OFFICER Thc official I-icluitlator, N{/s. Nagariur-ra Finance Limiteti (tn Liqn.) attachecl to thc Fli{h ioirrt ..ri i.'1.r:r11.rt-,.1 atlil .\ntihla Praclesh, 1st F1oor, Corporate Bhawan' i,.r, r.i i.r.til'.i -r, i\' acoit', i I., ti:t-.rbatl - r0()068 i ir'-' ii,'girir',rl rrt' Ct--tt l ir.',l t i.'s, \'lii.irstrv oi Corporate Affair;' Government of Inclia' 2," [;i.or, Corporate BI',.1u'au, \iagole, Bancllagucla, fhattiannaram Village' I Iavirthnap].u' \!antial, Ralrga RetlclY District, Telangana Sta:e' Pin Code-500 068' 'r'1,., 1i..ri1,,r.rl Dlructor', s,rriLl.r Easlcln Region, Ministrl cf Corporate Affairs., 3'J I 1.,,,r', i \':rir'.:'..f i' Bi',.t"".tr:, \agole, Bandlaguda, -'hattiannaram Village' ll.tr;t],,,.-,'r:, \,'l,l,r.lr ir..rl*:1 lR'-'ci.i - District Telangana State, PinCode- 500068' i ),

I' i\ \ 'J t\ \ -1. i ir.. Sectit:n ()iiiccr, O.S. Sectior.r, High Court of Hyclerabad for the State ot Tcl.r ng.ura. .' (),r,-, CC .,; Sli | 5r'i,r.rtlr Rc,.ldr', Arlvocate for Official Liquidator, High Court for thc \t,tr, oi tri.ir:,Jana (Of UCl ,\ I i i, i r.! ' \

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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.