M/S.Arrow Metalspin Limited (In Liqn.) vs. No Respondents
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. Arrow Metalspin Limited (in liquidation) for the period April 1, 2024, to September 30, 2024. The application also sought permission to pay an audit fee of Rs. 500 plus GST to the independent auditors, M/s. KBS and Associates. Additionally, the Official Liquidator requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.
Held
The Court allowed the application. It ordered that the half-yearly accounts of M/s. Arrow Metalspin 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, be taken on record. Furthermore, permission was accorded to the 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 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.
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. 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fee of Rs. 500/- plus GST to the auditor. 3. Whether the costs of the application should be permitted to be met from the available funds of the company (in liquidation) or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator presented the half-yearly accounts and the auditor's report, seeking the Court's approval to record them and to authorize the payment of the audit fee and application costs, as detailed in the supporting affidavit. Revenue/State: No arguments were recorded for the revenue or State in this matter.
Sections Cited
Section 462, Companies (Court) Rules 1959 Rule 298, Companies (Court) Rules 1959 Rule 306
AI-generated summary — verify with the full judgment below
[ 321s ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THUR AY, THE FIFTH DAY OF MARCH TWO IHOUSAND AND TWENry SIX PRESENT THE HONOURABLE SMT JUSTICE T.MADHAVI DEVI COMPANY APPLICATION No.18 of 2026 IN REFERRED COMPANY CASE NO: 7 of 2000 ln the matter of the Companies Act, 1956 And ln the matter of M/s.Arrow Metalsp in Limited (ln Liqn.)
The Official Liquidator, attached to the Hon,ble High Court of Tetangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandlaguda, Nagole, Hlderabad- 500068 ...Appticant Applrcation Under Section 462 of he Companies Act, 1956 read with Rule 298 and Rule 306 of the companies (court) Rures, 1g59 prayrng that this Hon'bre Court may be pleased to Take the half-yearly accounts of ttre subject company (in liquidation) for the period from 01.04 2024 to 30.09.2024, along with tndependent Audrtors' Report dated 12.01 .2026 submifted on 22.01.2O% by M/s. KBS and Associates, Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.Soo/-plus GST to the said auditor Cost of thrs apptication (Cou( fee Stamps and Ndary Charges etc.,) may be permitted to be met out by the Official L(uidator from the ava
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