In The Matter Of M/S.Kera Sinters Limited (In Liqn) vs. No Respondent

Facts

This matter concerns a Company Application filed by the Official Liquidator of M/s Kera Sinters Limited (in liquidation) before the High Court of Telangana. 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 from October 1, 2023, to March 31, 2024. Additionally, it requested permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. Padmanabha Rao and Co., Chartered Accountants, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the Court.

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 the application. Specifically, the Court took on record the half-yearly accounts of M/s Kera Sinters Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 21.05.2025 submitted by M/s. Padmanabha Rao & Co., Chartered Accountants. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. 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 account if the company's account was insufficient, 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 M/s Kera Sinters Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors Report dated 27.05.2025. 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 company's funds or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator, through their counsel, presented the half-yearly accounts and the auditor's report, seeking the Court's approval to record them. They also sought permission to pay the audit fee and cover application costs from available funds, as detailed in the supporting affidavit. The application was made under the relevant provisions of the Companies Act and Rules. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.