M/S. Rupa Steels Limited(In Liqn) vs. No Respondent
Facts
This matter concerns a Company Application filed by the Official Liquidator, attached to the Telangana High Court, for M/s. Rupa Steels Limited (in liquidation). The application, filed under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959, sought permission to take on record the half-yearly accounts of the company for the period 01.10.2022 to 31.03.2023, along with an auditor's report dated 10.04.2025 submitted on 05.06.2025 by M/s. Murthy & Kanth, Chartered Accountants. The Official Liquidator also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors and to meet the cost of the application from the company's funds or the Estate and Establishment Fund account, subject to reimbursement.
Held
The Court held that the application was satisfied with the reasons mentioned in the supporting affidavit. Consequently, the Court ordered as follows: (a) The half-yearly accounts of M/s. Rupa Steels Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025 submitted on 05.06.2025 by M/s. Murthy & Kanth, Chartered Accountants, were taken on record. (b) Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. (c) 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 upon realization of its assets. The ratio decidendi is that procedural applications by the Official Liquidator, when supported by proper affidavits and reports, should be granted to facilitate the orderly winding up of companies.
Key Issues
1. Whether the half-yearly accounts of the company in liquidation for the period 01.10.2022 to 31.03.2023, along with the auditor's report dated 10.04.2025, 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 cost of the application from the company's funds or the Estate and Establishment Fund account, subject to reimbursement. The Official Liquidator argued that the application was supported by a detailed affidavit and that the auditor's report was in order. The revenue or State did not appear to have made any specific arguments as recorded in the judgment. The core of the application was procedural: seeking court approval for routine financial and administrative actions related to the liquidation process.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 31681 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERBAD THUR AY, THE SEVENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAI(SHMAN COMPANY APPLICATION No. I41 0F 2025 IN COMPANY PETITION NO:92 0F 1999 ln the matter of the Companies Act, 1956 And ln the matter of M/s. Rupa Steels Limited(in liqn)
The.official Liquidator, attached to the Honourabre High court of rerangana, and Andhra Pradesh, 1st ftoor. Corporate Bh;;;;, B;;;Liuoa, t,tagote, ffv"o"ru"J: 500068 ...Applicant Application under section 462 of the companies Act, .1956 read with Rule 298 and Rule 306 of the companies (court) Rures, 'r959 praying that this court may be pleased to: i) take the hatf-yearty,3:_"g!lF of the subject company (in liquidation) for the period from 01r10t2022 to 31t03t2023, arong ,i,iti a,]Jit"i'nJport dated 10t04t2O25 submitted on ObtO6t2O25 by M7s. rUr.tr,V anO ialtn, Chartered Accountants on record and permission may be'accorded to ... make the payment of audit fee of Rs.500A prus GST to it u r"io ,rJito, ii) cost of this apprication (court fee stamps and Notary cr,"rg." "i".J ;.y be permitted to be met out by the officiar Liquidator rrorn-the "rrir
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.