In The Matter Of M/S.A.P.Refractories Limited (In Liqn.) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. A.P. Refractories Limited (in liquidation) for the period April 1, 2024, to September 30, 2024. The application also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. KBS and Associates, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The application was supported by an affidavit and the Independent Auditors' Report dated January 12, 2026, submitted on January 22, 2026. The Court heard arguments from the counsel for the Official Liquidator.

Held

The Court allowed the Company Application. Regarding the first issue, the Court took on record the half-yearly accounts of the subject company, M/s. A.P. Refractories 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 on January 22, 2026. Concerning the second issue, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. For the third issue, 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 fund was available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court found the reasons stated in the accompanying affidavit to be sufficient and considered the filed accounts.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to M/s. KBS & Associates. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Contentions of the Petitioner (Official Liquidator): The Official Liquidator sought the reliefs as stated in the application, supported by the affidavit and the auditors' report, indicating the necessity of these steps in the liquidation process. The Official Liquidator argued for the approval of the accounts, the payment of audit fees, and the utilization of available funds for application costs, as per the established procedures under the Companies Act and Rules. Contentions of the Revenue/State: No specific arguments were recorded for the Revenue or State in this judgment.