M/S. A. P. Refractories Limited (In Liqn) vs. No Respondent
Facts
The Official Liquidator of M/s A. P. Refractories Limited (in liquidation) filed a Company Application seeking permission to take on record the half-yearly accounts for the period April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report dated July 4, 2025. The application also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy and Kanth, Chartered Accountants. The Official Liquidator further 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 realization of assets. The application was supported by an affidavit and argued by the Official Liquidator's counsel.
Held
The Court held that the application was to be ordered. Specifically, the half-yearly accounts of M/s A. P. Refractories Limited (in liquidation) for the period April 1, 2023, to September 30, 2023, along with the Auditor's Report dated July 4, 2025, were taken on record. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, the Official Liquidator was permitted to make this payment from the available funds of the company in liquidation or, if no funds were available, from the Estate and Establishment Fund account, with the condition that such payments would be reimbursed from the company's funds upon the realization of its assets. The Court was satisfied with the reasons presented in the supporting affidavit.
Key Issues
1. Whether the half-yearly accounts of the company in liquidation for the period April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report dated July 4, 2025, should be taken on record. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. 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. Petitioner's arguments: The Official Liquidator, representing the company in liquidation, argued for the approval of the accounts and the payment of audit fees, as these are necessary steps in the winding-up process. Reliance was placed on the supporting affidavit detailing the reasons for the application and the auditor's report. Revenue/State arguments: No specific arguments were recorded for the revenue or State in this matter, as it pertains to the internal administration and financial management of a company in liquidation before the High Court.
Sections Cited
Section 462, Companies Act, 1956, Rule 298, Companies (Court) Rules 1959, Rule 306, Companies (Court) Rules 1959
AI-generated summary — verify with the full judgment below
[ 31681 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY,THE TWENTY SECOND DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FI\/E PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPANY APPLICATION NO.. 212 OF 2025 IN C.P.No. 40 of 1986 !n the matter of the Companies Act, 1956 And ln the matter of M/s A. P. Refractories Limited (in liqn), The Official 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 Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules 1959 praying that this Hon'ble Crcurt may be pleased to : take the half- yearly accounts of the subject company (in liquidation) for the period from 01 . 04. 2023 to 30. 09. 2023, along with lndependent Auditors Report dated 04. 07.2025 submitted on 08. 07. 2025 by Mls.
Murthy and Kanth, 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 Liqukiator from
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