M/S.Obra Chemicals Limited (In Liqn) vs. Nil
Facts
The Official Liquidator of M/s. Obra Chemicals Limited (in liquidation) filed Company Application No. 163 of 2025 before the Telangana High Court. The application sought permission to take on record the half-yearly accounts of the company for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 27.05.2025. Additionally, the Official Liquidator 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 also sought permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund account, subject to reimbursement upon realization of assets.
Held
The Court, having been satisfied with the reasons stated in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered as follows: a) The half-yearly accounts of the subject Company (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 27.05.2025 submitted on 03.06.2025 by M/s Padmanabha Rao & Co., 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 funds were available in the Company's account, subject to reimbursement from the funds of the Company upon realization of its assets. The Court found the reasons provided by the Official Liquidator to be satisfactory.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01.10.2023 to 31.03.2024 and the accompanying auditor's report. 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 account. The petitioner, represented by the Official Liquidator, argued for the approval of the accounts, the payment of audit fees, and the meeting of application costs, based on the supporting affidavit and the auditor's report. The revenue or State did not appear to have made any arguments as the matter was presented as an application by the Official Liquidator.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3168 ] rN rHE HIGH "or*lf3$otl*tot"t#E oF TELANGANA "'fr i,'#iJ[E^'SJ'^t'B\'ii='-Sf l,u""'- PRESENT THE HONOURABLE SRI JUSTICE K'LAKSHMAN coMPANY APP LIGATION No. 163 ol 2025 IN COMPA NY PETITION No:1 58 of 'r997 ln the matter of the Companies Act' 1956 And ln the matter of M/s' Obra Chemicals Limited (in liqn)'
Im#J'Fi:!5iH',f,131"1n33[i,i".Hf,,I:f s"lx''If'"':i',:lJ€iry.tl,it:ll 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: take the half-yearly accounts of the subiect company (in liquidation) for the period from 01.102023 to 31'03 2024' 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 1 auditor' cost of this application (Court fee Stamps and Notary Charges etc'') may be permitted to be met out by the Official Liquidator {rom the available funds of the company (in liquidation) or Estate and Establishment Fuild account if no fund is available in the
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