M/S.Gsn Ferro Alloys Private Limited (In Liqn) vs. No Respondent
Facts
This matter concerns a Company Application filed by the Official Liquidator of M/s. GSN Ferro Alloys Private 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 for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 27.05.2025. The Official Liquidator also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The application further prayed for permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement.
Held
The Court held that the half-yearly accounts of M/s. GSN Ferro Alloys Private Limited (in liquidation) for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 27.05.2025, are to be taken on record. The Court also granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. 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 the company's account is depleted, with the condition that such expenses would be reimbursed upon the realization of the company's assets. The Court was satisfied with the reasons provided in the supporting affidavit and considered the filed accounts.
Key Issues
1. Whether the half-yearly accounts of the company (in liquidation) for the period 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 27.05.2025, should be taken on record. The Official Liquidator argued for taking these on record to facilitate the company's liquidation process. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator contended that this payment is necessary for the audit of the company's accounts. 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. The Official Liquidator argued for this to ensure the smooth progression of the liquidation proceedings. The revenue or State did not record any specific arguments.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THUR AY, THE SEVENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPAN Y APPLICATION No-'171 o12025 IN COMPANY PETITTON No:33 of 2016 ln the matter of the Companies Act, 1956 And ln the mafter of M/s.GSN Ferro Alloys Private Limited (in liqn)
TheOfficialLiquidator'attachedtotheHonourableHighCourtofTelangana'and Andhra Pradesh lst floor, C;fiolil Bitilin' eanor;guoa' Nagole' Hvderabad - 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 Court may be Pleased to: i'takethehalf-yearlyaccountsofthesubjectCompany(inliquidation)forthe period from 01 .10.2023 to 31'O32024' along with lndependent Auditors Report dated 27 05'2025 submitted on 03 06 2025 by M/s Padmanabha Rao and Co., 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 available funds of the co
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