M/S.Magna Foundriinier Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application (CA No. 236 of 2025) in R.C.C. No. 6 of 1999. The application sought permission to take on record the half-yearly accounts of M/s Magna Foundriinier Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. Murthy and Kanth, Chartered Accountants, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and heard by the High Court.

Held

The Court, having been satisfied with the reasons presented in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered the Company Application. The Court took on record the half-yearly accounts of M/s Magna Foundriinier Limited (in liquidation) for the period from April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated July 4, 2025. Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, permission was granted 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 no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court did not expressly leave any issues undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period April 1, 2023, to September 30, 2023, along with the Independent Auditors' Report dated July 4, 2025. 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 available funds of the company or the Estate and Establishment Fund. Contentions: Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditor's report, seeking judicial approval for their recordal and for the payment of audit fees and application costs. The application was supported by a detailed affidavit outlining the necessity of these payments for the proper winding up of the company. Revenue/State: No arguments were recorded for the Revenue or State in the judgment provided.