M/S.Acme Fluro Polymers Limited (In Liqn.) vs. Nil
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application (CA No. 7 of 2026) under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought permission to take on record the half-yearly accounts of M/s. ACME Fluro Polymers Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026. Crucially, the application also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates. The Official Liquidator also sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement.
Held
The Court held that the application was to be allowed. Specifically, the Court ordered that the half-yearly accounts of the subject company, which is in liquidation for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026, submitted by M/s. KBS & Associates, Chartered Accountants, are taken on record. Furthermore, permission was accorded to the learned Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Court also granted permission for this payment to be made 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 company's funds upon realization of its assets. The Court found the reasons stated in the accompanying affidavit to be sufficient for allowing the application.
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, as required under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959? 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, as per the application? The petitioner, the Official Liquidator, argued that the application was filed in accordance with the relevant provisions of the Companies Act and Rules, seeking necessary approvals for the proper winding up of the company. The revenue or State did not appear to have presented any arguments as the matter was an application by the Official Liquidator for administrative and financial approvals within the liquidation process.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
IN THE HIGH GOURT FOR THE STATE OF TELANGANA AT HYDERABAD THUR AY, THE FIFTH DAY OF MARCH ] TWO THOUSAND AND TWENTY SlX PRESENT THE HONOURABLE SMT JUSTICE T.MADHAVI DEVI COMPANY APPLICATION NO. 7 OF 2026 IN ln the matter of the Companies Act, 1956 And ln the matter of M/s. ACME Fluro Polymers Limited ( Liqn)
Between: The Officia! Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1stfloor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad- 500068 ...APPLICANT Application Under Section 462 of the Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules, 1959 praying that this Hon'ble Court may be pleased to Take the half-yearly accounts of the subject company (in tiquidation) fior the period from 01 .04.2024 to 30.09.2024, along with lndependent Auditors' Report dated 12.01.2026 submitted on 22.01.2026 by M/s. KBS and Associates, Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500/glus GST to the sakl auditor.
Cost of this application (Court fee Stamps and Notary Charges etc.,) may be permifted to be met out by the Official Liquidator from the available funds of the company (
The judgment continues below.
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