M/S.Dcl Finance 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. 23 of 2026 in Company Petition No. 133 of 2001 concerning M/s DCL Finance Limited (in Liquidation). The application sought to take on record the half-yearly accounts for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026. Crucially, it also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s KBS & Associates. The Official Liquidator also requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon asset realization. The application was supported by an affidavit and heard by the High Court.
Held
The Court allowed the Company Application. It ordered that the half-yearly accounts of M/s DCL Finance Limited (in liquidation) for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026, be taken on record. Permission was also granted to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors. 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 the company's account lacked sufficient funds, with the condition that these expenses would be reimbursed from the company's funds upon realization of its assets. The Court did not record any arguments from the revenue or state, as this was an application by the Official Liquidator in a liquidation proceeding.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of M/s DCL Finance Limited (in liquidation) for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026. 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 KBS & Associates. 3. Whether the costs of the Company Application can be met 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 their counsel, presented the half-yearly accounts and the auditors' report, seeking their formal acceptance by the Court. They also requested authorization to disburse the audit fee, including the applicable GST, and to cover the application's costs from the company's liquidation estate, as is standard practice in such proceedings. No specific statutory provisions or precedents were cited in the judgment for these arguments, which were based on the procedural requirements of company liquidation.
Sections Cited
Section 462, Companies Act, 1956, Rule 298, Companies (Court) Rules, 1959, Rule 306, Companies (Court) Rules, 1959
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
INTHE IIIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE SMT.JUSTICE T. MADHA'r'T DEVI COMPANY APPLICATION No.23 of 2426 IN COMPANY PETITION No.133 of 2001 DATE: 17.03.2026 IJetw,een: l'hc Ofl'iciat Liquidator, Attached to the Hon'ble High Court of l-clangana and Andhra Pradesh, l'' I'loor, Corporate Bharvan, Bandlaguda, Nagole, lll,derabad - 500068. ...Applicant ORDEII I his apptication is fi led under Section 4$) of Companies Act. IC)i6, read with Rules 298 and 306 of the Companies (Court) I{ulcs. 1959, seekine the tbttowing reliefs: lo take the half--yearly accounts of the subject company (in liquidation) ftrr the period frorn 01.04.2024 to 30.09.202,1. along r'vith [ndependent Auditors' Report dated 12.0 l.]01(r subnritted on 11.01.1026 bv M/s. KBS it. Associates. ('hartered Accor.rntarrts ort record and permission mal bc
-- COM PA_23 2026 in cP 133 2001 accorded to make the payment of audit fee of Rs.500/- ptus GST to the said auditor. Cost of this application (Court fee Stamps & Notary Charges 2 Il. etc.,) may be permitted to be met out by the Official Liquidator from the available funds of the company (in tiquidation) or E,state 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'bte Coun may deem fit and proper in this regard.
Heard Sri J. Sreenadh Reddy, learned counsel appearing lor the Officiat Liquidator and perused the affidavit flted in support of this application.
Having regard to the reasons stated in the accompanying alfldavit and upon considering the hatf-yearly accounts filed by the learned Official t,iquidator, this application is allort'cd with the tb llou,ing:- ( OMPA 2i 1026 in cP I 33_.200 | a The half-yearly accounts of the subject company, which is ln liquidation fbr the period from (tl.04.2024 to 30.09.2024, along .,vith lndependent Au,litors' Report dated 12.01.2026 submitted on 22.01.2026 by M/s. KBS & Associates. Charlered Accountants are tal:en on record b. Pemrission is accorded to the leamed Offir:ial Liquidator to pay ar1 audit t'ce of Rs.500/- plus GST to the auditor c. Pemrission is also accorded to the leamed Official Liquidator to rnake the said payment fronL the available lunds of the C--ourpany (in liquidation), or from the Estate and Establishrnent Frind account if no fund is available in the Compan_r,'s acoount, subject to reimbursement from tlie funds ol (iompany (in tiquidation) upor, realization of lts assets. //// B. SATYAVATHI JOINT REGISTRAR .' q- !./ SECTION OFFICER To,
The Official Liquidator, lr4/s DCL Finance Limited (ln]-iqn) attlched. to tf" ' i;; bb H,Sh-Court ot fefangina 1st floor, Corporate []hawan, Bandlaguda, Naoole. Hvderabad -500068 z tfrEiil"'i.i; ;ic;r-dJi, vrinirtry of corporate Affairs, Government of - l;;,'iY+ilti c*p.i*t" Bhawan. irlagole' Bandlaouda Thattiannarama v,l l;;", n"v"ilrnigJl. IMu ;d;l,i;;; REoo-v oistrictirelirnsa na State P in 3 4 Code-500068 ih" n..i""Ll Director, South Eastern Region, Ministry of Corporate-Affairs' i;jii;;Y. U;p;i"1" et ;;; r',t asote Ba idlag uda Thatr iannaram villase irvrtn"iguiidnoli nrng, Reddv District, Telangana State Pin Code 500068 ihe S""t,on Officer. O S Section, High Court of Hyderabad for the State of Telanoana O;;'iC'i; Sri J Sreenath Reddy Advocate for Official t-iquidator' High Court for the State of Telangana(OPUC) Two CD Copies :f 5 r) Ks/Sa I
HIGH COURT DATED:1 7 10312026 ORDER C.A.No.23 ot 2026 IN G.P.No.133 of 2001 Without costs. (6', r ro' ': -l"n ._ ...,\{ '. < ,toF ,,,5 ,,J ,,.) \i. {. ''.".t. .,1. -i,11)'[)\ va \.))) a\' \' (' tl t- 1.0 ; IlAY ?O .LJ * .' ,r\, '.\" ' t' 'I Allowing the Company APP|ication VT r r[ur\eo
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.