M/S.Kode Chit Fund Private Limited (In Liqn.) vs. No Respondent
Original PDF →Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 41 of 2026. This application was made under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The Official Liquidator sought permission to take on record the half-yearly accounts of M/s. Kode Chit Fund Private Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024. Additionally, the application requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates, Chartered Accountants, and to meet the costs of the application from the company's available funds or the Estate and Establishment Fund. The application was supported by an affidavit and heard by the High Court.
Held
The Court allowed the application. Firstly, it took on record the half-yearly accounts of M/s. Kode Chit Fund Private Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026, submitted on 22.01.2026 by M/s. KBS & Associates, Chartered Accountants. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Thirdly, permission was also granted to the 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 funds were available in the company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court's reasoning was based on the reasons stated in the accompanying affidavit and consideration of the half-yearly accounts filed by the Official Liquidator.
Key Issues
1. Whether the Court should take on record 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 dated 12.01.2026, submitted on 22.01.2026 by M/s. KBS & Associates. The Official Liquidator argued for the acceptance of these accounts and report as part of the statutory requirements for companies in liquidation. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator contended that this fee is necessary for the audit of the company's accounts and is a legitimate expense in the liquidation process. 3. Whether the costs of the application, including court fee stamps and notary charges, can be met from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The Official Liquidator argued that these expenses are incidental to the liquidation proceedings and should be permitted to be paid from the available funds.
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
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IN THE HIGH COI]RT FOR THE STATE OF TELANGANA ATHYDERABAD THE HON'BLE SMT.JUSTICE T. MADIIAVT DEVI COMPANYAPPLTC ATION No.4l of 2026 COMPANY PETITION No.154 of 2000 DATE:17.03.2026 Betu'cen: I'he Oiljcial Liquidator, Attached to the Hon'ble High lourt of I'e langana and Andhra Pradesh, l" I'loor, Corporate Bhawan, Bandlaguda, Nagole, llrderabad - 500068. ... Applicant ORDER 'I'his apptication is filed under Section 462 of Cotnpatries Act. 195(r, r'ead with Rules 298 and 306 of the Companies (Court) I{ules. 19,59, seeking the following reliefs: i. I'o take the half-yearly accounts of the subject conrpany (in litluidation) for the per.od from 01.04.2024 to i0.09 101-1. along rvith Independent Auditors' Report dated l2-01 .1016 subnritted on 22.01.2026 by M/s. KBS & Associates, C'harrered Accountants on record and pertnissiotr may bc IN \ COMPA-41 2026 in cP 154 2000 accorded to make the paymertt of audit fee of Rs'500/- plus GST to the said atrditor' ii. Cost ol- tl.ris applir.-ation (Court fee Stamps & Notary Charges etc.,) may be pernritted to be met out by the Official Liquidatorlionltlreavailablefundsofthecompany(in liquidation) or []stalc and Establishment Fund account if no lundisavailabicinthecompany'saccount;subjectto reimbursctncnt ol the same from the funds of company (in tiqn) upon rcalizrttitrtr ol assets of the Company (in liqn) whencVer st> haPltcrtctl irnd To pass such othct-orcl'lt ot'orders as this Hon'ble Court may deem fit and ProPer irr this rcsilrd 2.HearclSri.l'Srccita.lhRed<ll,,teamedcounselappearingfor the Olficial l.icluitlatt'r' rttrcl pcruscd the affidavit filed in support of this application. 3. l{ar inlr rctlat-tl to tlrc reasons stated in the accompanying affidavit irtrcl ttpotr cottstclcrittg the half-yearly accounts filed by the leamed C)l'llcitil [-iqtriclator- this application is allowed with the lbllou'ing:- 1 2 I i I i i1 COMPA_41_2026 in cP 154 2000 a. The half-yearly accounts ofthe subject company, which is in liquidation for the period from 01.04.2024 to 10.09.2024, atong with Independent Auditors' Report dated 12.01.2026 submitted on 22.01.2026 by M/s. KBS & Associates. Chartered Accountants are taken on record b. I)ermission is accorded to the leamed Offrcial Liquidator to pa)' an audit fee of Rs.500/- plus GST to the auditor' c. Pcnnission is also accorded to the leamed Official l-iquidator to make the said payment from the available lunds ol the Company (in liquidation), or from the Estate ancl L.stablishment Fund account if no fund is available in the ('ornpanl"s account, subject to reimbursement from the tirnds ol'Company (in liquidation) upon realization ol' 3 rts asscLs To, A.V.S .S.C.S.M.SARM JOIN T REGIS R //// SECTION OFFICER
The Officrai l-iq'rioator. i'1.1s. Kode Chit Fund Priva imited offlce et 1st lioor Corporate Bharvan, Bandlaguda, Nagole' Hyderabad - 0068
The Regrstral of Companies, Ministry of Corporate Affairs, Government or lndia 2"d floor Corporate tshawan. Nagole, Bandlaguda, Thattiannaram Village Hayathnagar l,,1andal. Ranga Reddy District' Telangana State Pin Code 500 3 680 The Regronai Drrecior So,rlh Eastern Region, Ministry of Coroorale 46'2'r's 3''i floor C-orpoiate Bha'^;an, Nagole, Bandlaguda, Thattiannaram Village iayathnagar IVlarrclai Ranga Reddy District Telangana State Pin Code 500 680
The section officer, o.s. section, High court at Hyderabad, for the state of Telangana. t ffa""ffij: sri J. sreenadh Reddv, counsel for officiai Liquidator, High court at /
Two CD Copies DUPSL fJ- ta
\\ tlcH couRT DATED: 1710312026 ORDER COMPANY APPL.|CAT|ON No. 41 ot 2026 IN COMPANY PETtTtOht NO: 154 OF 2O0O ALLOWING THE APPLICATION q(oR lHt SI4 /s o U 2s l,pnMs PATCH ED * i I i I tl- o -A
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.