M/S.Midwest (I) Industries Limited (In Prov. Liqn.) vs. No Respondent
Original PDF →Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application (CA No. 108 of 2026) in CP No. 39 of 2000. The application sought permission to take on record the half-yearly accounts of M/s. Niclvest (I) Industries Limited (in provisional 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 requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth., Chartered Accountants. The application also prayed for 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 learned counsel for the Official Liquidator presented arguments.
Held
The Court allowed the application. It held that the half-yearly accounts of the subject company for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 09.02.2026, are to be taken on record. The Court granted permission to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors. Furthermore, permission was accorded 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 that such expenses would be reimbursed from the company's funds upon realization of its assets. The Court found the reasons stated in the accompanying affidavit to be sufficient and considered the accounts filed by the Official Liquidator.
Key Issues
1. Whether the half-yearly accounts of the subject company (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report, should be taken on record. The Official Liquidator argued for taking the accounts and report on record as part of the procedural requirements for managing a company in liquidation. 2. Whether permission should be granted to pay the audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator contended that this payment is necessary for the audit of the company's accounts. 3. Whether the costs of the application can be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The Official Liquidator argued for this provision to ensure the smooth functioning of the liquidation process, especially if immediate company funds are unavailable.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
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: i. To take the half-yearly accounts of the subjer:t company (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with Independent Auditors' Report dared 09.02.2026 submitted on 11.02.2026 by IWs. Murthy & Kanth., Chartered Accountants on record and perm.ssion may be TMDJ COMPA 108 2026 in cP 39/2000 2 11. accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. 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 Court may deem fit and proper in this regard. 2 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 learned Official Liquidator, this application is allowed with the following:- o./"
To, //TRUECOPY // T!1DJ CO\IPA 108 2026 in cP 39/2000 6 3 a The half-yearly accounts of the subject corrrpany, which is ln liquidation for the period from t)|.04.2024 to 30.09.2024, along with Independent Auditors' Report dated 09.02.2026 submitted on 11.02.2026 by M/s Murthy & Kanth., Chartered Accountants are taken on record. b. Permission is accord"d to the leamed Official Liquidator to pay an audit fee of Rs.500/- plus GST to r.he auditor. c. Permission is also accorded to the le arred Official Liquidator to make the said payment fronr the available funds of the Company (in liquidation), or liom the Estate and Establishment Fund account if no fimd is available in the Company's account, subject to reimb rrsement from the funds of Company (in liquidation) upon realization of rts assets. M VIJAYA BHASKER JOINT REGISTRAR SECTION OFFICER L Tlri: Oificial LiquiLlator, M/s. N4icir,r,est (l) Industries Limited (In Prov. Liqn.) attacl'Lecl to the Higl-r Coult of Telangana and Andhra Prac esh, 1st Floor, Corporate Bharvan, Bancllaguda, Nagole, Hvt{erabad - 500068. I The Rcgistrar of Comp.ranies, Ministrv oi Corporate Affairs, Government of India, 2irlr lcloor, Corporate Bhalvan, Nagole, Bandlaguda, Thattiannaram Village, i i.r i'i,:ilrag.rl Mantial, Ranga Reddv District, Telangana State, Pin Code-500 068. -;. Tlre I?.egional Director, South Eastern Region, Ministry c,f Corporate Affairs, 3.1 --.""tJd-
': -- ;v Floor, Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village, Har.athnagar N,lancla, Ranga Recldv District Telangana State, pin Code - 500 068. -1. Tl-re secti., ofiicer, o.S. section, High court of Hyderabad for the state of *-.-? Tclangana. 5- One CC to Sri J.Srinath Reddv, Advocate for Official Liquidator, High Court for the State. of Telangana (OPUC)
Tr.r'o CD Copies. JLK,/ABK ?M^
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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.