M/S.A.P.Steels Limited vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application No. 6 of 2026. The application sought to take on record the half-yearly accounts of M/s. A.P. Steels 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, Chartered Accountants. Additionally, the Official Liquidator sought 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 held that the application should be allowed. Specifically, it decided to take on record the half-yearly accounts of M/s. A.P. Steels Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026. The Court granted permission to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS & Associates, Chartered Accountants. Furthermore, permission was accorded 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 insufficient, with the condition that such payments would be reimbursed from the company's funds upon realization of its assets. The reasoning was based on the reasons stated in the accompanying affidavit and the consideration of 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 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026, as per Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959? The petitioner (Official Liquidator) argued for the acceptance of these documents and the approval of the audit fee. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditors? The petitioner contended that this payment is necessary for the audit of the company's accounts. 3. Whether the costs of the application can be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement? The petitioner sought this permission to ensure the smooth functioning of the liquidation process. The revenue or State did not present any arguments as this was an application by the Official Liquidator for administrative and procedural approvals.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 321s 1 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THUR AY, THE FIFTH DAY OF MARCH TWO THOUSAND AND TWENTY SIX PRESENT THE HON'BLE SMT JUSTICE T.MADHAVI DEVI COMPANY APPLICATION No. 6 OF 2026 IN REFERRED COMPANY CASE No.2 of 1995 ln the matter of the Comoanies Act. 1956 And lii the matter of M/s. A.P. Steels Limited (ln Lion.)
Between: The Official Liquidator, attached to the Hon'ble HQh Court of Telangana, and Andhra Pradesh, 1't floor, Corporate Bhawan, BaMlaguda, 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: ll.
Take the half-yearly accounts of the subject company (in liquidation) for the period from O110412024 to 3010912024, along with lndependent Auditors' Report dated 1210112026 submifted on 2210112026 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/plus GST to the said auditor.
Cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the Official Liquidator from
The judgment continues below.
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