M/S.Circar Paper Mills 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. 27 of 2026) under Section 462 of the Companies Act, 1956, read with Rules 198 and 306 of the Companies (Court) Rules, 1959. The application sought permission to take on record the half-yearly accounts of M/s. Circar Paper Mills Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, submitted by M/s. KBS & Associates, Chartered Accountants. Additionally, the application requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement.
Held
The Court, having heard the learned counsel for the Official Liquidator and perused the affidavit filed in support of the application, along with the half-yearly accounts, allowed the application. Specifically, the Court ordered that the half-yearly accounts of M/s. Circar Paper Mills Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, submitted by M/s. KBS & Associates, Chartered Accountants, be taken on record. Permission was also granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Furthermore, the Court permitted 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 Court did not expressly leave any issues undecided.
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 12.01.2026, as submitted by M/s. KBS & Associates, Chartered Accountants. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the said auditors. 3. Whether permission should be granted 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 for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditors' report, seeking their formal acceptance by the Court. He also requested permission to pay the audit fee and cover the application costs, as detailed in the accompanying affidavit. No arguments were recorded for the revenue or State.
Sections Cited
Section 462, Companies Act, 1956, Rule 198, Companies (Court) Rules, 1959, Rule 306, Companies (Court) Rules, 1959
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Cause title — parties, addresses and appearances
ORDER This apptication is flled Lrndcl Section 462 of Companies Act, 1956, read with Rules 198 and 106 of the Companies (Court) Rules, 1959, seeking the lbllo'' ir.rs relicti: i. To take the hatt'-vearly accotrtrts ot'the subject company (in liquidation) fbr thc periocl tiom 01.04.2024 to 30.09'2024, along with lndeperrclent Arrditors' Report dated 12'Ol '2026 submitted on 22.0t.1026 by M/s. KBS & Associates, Chartered Accountants ou record and permission may be COMPA 27 2026 il RCC 20 2000 accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. ii. Cost of this application (Court fee Starnps & Notary Charges etc.,) may be permitted to be met our by the Official Liquidator from the available funds of the cornpany (in liquidation) or Estate and Establishment Fund accounr if no fund is available in the company's account; subject to reimbursement of the same from the f unds ol cornpany (in liqn) upon realization of assets of the Compan1,, (in liqn) whenever so happened and To pass such other order or orders ar this Hon'blc Courl nral deem Iit and proper in this regard.
Heard Sri J. Sreenadh Reddy, learnecl counscl appcaring lbr the Olficial Liquidator and perused the alfldavit filcd in support of this application.
Having regard to the reasons stated in the accornpunl ir-rg a{}ldavit and upon considering the half-yearll accounrs tilcd by the learned Official Liquidator, this application is allor,,eci i.r ith the lb llorv ing:-
I COMPAJ1 ?026 iD RCC 20 2000 a: The half-yearly accounts of the subject company, which is in liquidation for the period from 01.04.2024 to 30.09.2A24, along with Independenr Auditors, Report dated 12.01.2026 submiued on 22.01.2026 by M/s. KBS & Associates, Chartered Accountants are taken on record b. Permission is accorded to the leamed Official Liquidator to pay an audit fee of Rs.500/- plus C}ST ro rhe auditor. c. Permission is also accorded kr the leamed Offrcial Liquidator to make the said paymenr tiom the available funds of the Company (in liquidation), or from the Estate and Establishment Fund accounr il' no f uncl is available in the Company's account, subject to reirnbursement from the funds of Companv (in tiquidation) upon realization of its assets. M.MANJULA JOINT REGISTRAR i/# SECTION OFFICER
The Official Liquidator, High Court of ielangana and Andhra pradesh, M/s. Circar Paper Mills Limited office at 1st flcor Corporate Bhawan, Bandlaguda, Nagole, Hyderabad -500068. 2. The Regiskar of Companies, Ministry cf C.rporate Affajrs, Government of lndia 2no floor, Corporate Bhawan, Nagole, Bandlaguda. .Ihattiannaram Village Hayathnagar Mandal, Ranga RedCy District. Ielangana State pin Code 500
The Regional Director, South Eastern Regron. l,.4rristry ot Corporate Affairs,3'd floor Corporate Bhauran, Nagole, EandlagLrda. Thattiannaram Village Hayathnagar [Vlandal, Ranoa Redtly' Disirict Telangana State, pin Code 500 680 3 A ' 6 To,
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The Section Officer, O'S. Section, High Court at Hyderabad' for the State of Telangana. s one ic to sri J Sreenadh Reddy, counsel for official l-iquidator, High court at Hyderabad.
Two CD CoPies Dt_1PSL E-
HIGH GOURT DATED: 1710312026 ORDER COMPA No. 27 ot 2026 IN R.C.C. No. 20 of 2000 -l lo APHru6 -, 1 H€ 5I4 rf $. ,J ', \ \-.. '\\"' o *s ALLOWING THE COMPANY APPLICATION o.) Jrtr icR'- k, -g\$Y l I i i I i : Z *l^^y;:,)/
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.