M/S.Coduras Exports 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. 28 of 2026. The application sought permission to take on record the half-yearly accounts of M/s. Coduras Exports Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. KBS and Associates, Chartered Accountants, who submitted their report on January 12, 2026. Additionally, the Official Liquidator sought permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon asset realization. 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 in favor of the Official Liquidator on all counts. Firstly, it ordered that the half-yearly accounts of M/s. Coduras Exports Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, be taken on record. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Thirdly, 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 if company funds were unavailable, with the condition of reimbursement upon the realization of the company's assets. The Court found the reasons stated in the affidavit to be sufficient and considered the half-yearly accounts filed by the Official Liquidator.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of M/s. Coduras Exports Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026. The Official Liquidator argued for the acceptance of these accounts and report as part of the due process in managing the affairs of a company 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, M/s. KBS and Associates. The Official Liquidator contended that this payment is necessary for the services rendered by the auditors in examining the company's accounts. 3. Whether the costs of the application, including court fee stamps and notary charges, can be met from the company's available 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 even if immediate company funds are insufficient.
Sections Cited
Section 462, Rule 298, Rule 306
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Cause title — parties, addresses and appearances
ORDER This application is tiled under Section 462 of Companies Act, 1956, read with Rutes 298 and 306 ol'the Companies (Court) Rules, 1959, seeking the following reliet's: i. To take the haltlyearly accounts o1 the subject company (in liquidation) lbr the period lrom 0l'04'2024 to 30'09'2024' along with lndependent Auditors' Report dated 12'01'2026 submitted on 22.01-2026 by M/s' KBS & Associates' v Chartered Accountants on record and permission may tle --- .IN l COMPA 2E 2026 in cP t70 1998 accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. ii. Cost of this application (Court fee Stamps & Norary Charges etc.,) may be permitted to be met our by the Officiat Liquidator from the available funds of the company (in liquidation) or Estate and Establishment Fund account il 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 assers of the Company (in liqn) whenever so happened and 'l'o pass such other order or orders as this Hon'ble Court mav deem fit and proper in this regard.
Heard Sri J. Sreenadh Reddy, leamed counscl appearing lbr thc Official Liquidator and perused the affidavit fited in support of th is application.
Having regard to the reasons stated in the accompanl ing affidavit and upon considering the half-yeally accounts filed bv the learned Official Liquidator, this apptication is allowed with the lollowing:- CoMPA 2E 2026 in cP r70 t 998 '- A.V.S.S.C.S.M.SARMA JOINT REGISTRAR 4 a. The half-yearly accounts of the subject company, which is ln liquidation for the period from 01.Q4.2024 to 30.09.2024, along with Independent Auditors' Report dated 12.01.2026 submitted on 22.01 .2026 by IWs. KBS & Associates, Chartered Accountants are taken on record b. Permission is accorded to the learned Official L iquidator to pay an audit fee of Rs.500/- plus GST to the auditor. c. Permission is also accorded to the leamed Official Liquidator to make the said payment tiom the available funds of the Company (in tiquidation), or from the Estate and Establishment Fund account if no fund is available in the Company's accoilnt, subject to reimbursement from the funds of Company (in liquidation) upon realization of its assets. z /I/, ,Ec,&oFFlcER To. -.--^i^ r,-16.1 /ln lion ) office at 1St
The Official Liquidator' M/s Coduras Exports Lrmited (ln Liqn ) office at 1st floor, corporate ena*;n,'blndtatuoa, Nig*. Hyderabad -500068. 2. The Registr"' ot co'i''iiJs'-rvrinistrv oi Corp^orate Affairs' Government of lndia 2nd n*', co'pJ'""t" iitt'*""'' Nagole'. Bandlaouda' Thattiannaram village Hayathn"g"i"'i;;;Jui' iansa"Reodv Drstiict' Telangana state , !["H&i"lt iu&..""'o', south Eastem- l"n:":^,ylfi" .T"-1:lHEl: Affairs, 3d noo' co?p"oi'tJ"a;'*"n' N-agole' Eandlaouda' Thattiannaram Villase Havathn's"J't?;i";;;' nJoov oitt'i"t ielansana state' Pin . ?#1t":1":t3*"",, o,S Section, Hish court at Hyderabad, ror the state of Telangana.
I Sreenadh Reddy, Counsel for Official Liquidator, High Court
One CC to Sri J at Hyderabad . 6 Two CD CoPies I VH/PSL \ct- I
I \ HIGH COURT DATED: 1710312026 ORDER COMPA.No.28 of 202G IN C.P.No. 170 of 1998 ALLOWING THE COMPANY APPLICATION € ."6'r . r',,.r. ii''; 5';i;i,\\ ,?. \i - \r^c ,.. ',l-' ^l,: . .-J 'e 3 0 APB 2026 l:..) l: -; * * DfsPATCil!! .,\ ">, /, A);', _ //' *r"
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.