In The Matter Of M/S. Genius Financial Services Limited (In Liqn) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Genius Financial Services Limited (in liquidation) for the period 01.10.2023 to 31.03.2024. The application also sought permission to make a payment of Rs. 5000/- plus GST towards the audit fee to the independent auditors, M/s. Padmanabha Rao & Co., Chartered Accountants, and to cover 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 Court.
Held
The Court, having satisfied with the reasons stated in the supporting affidavit and considering the half-yearly accounts filed by the Official Liquidator, ordered as follows: a) The half-yearly accounts of M/s. Genius Financial Services Limited (in liquidation) for the period 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 21.05.2025, were taken on record. b) Permission was accorded to the Official Liquidator to pay an audit fee of Rs. 5000/- plus GST to the auditors. c) Permission was also 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 account 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 found no impediment to granting these reliefs.
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 21.05.2025, should be taken on record? The Official Liquidator argued for taking the accounts on record to facilitate the liquidation process. 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fees amounting to Rs. 5000/- 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 costs of the application, including court fee stamps and notary charges, can be reimbursed from the company's funds or the Estate and Establishment Fund? The Official Liquidator sought permission for such reimbursement, subject to eventual recovery from the company's assets.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[3168 ] 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 COMPANY APPLICATION No. 156 ot 2O25 IN COMPANY PETITION Nos: 85/1997 & 108/1998 ln the matter of the Companies Act' 1956 And ln the matter of I\//s Genius Financial Services Limited (in liqn)'
The Official Liquidator, attached to the Honble Hioh Court of Telangana' and Andhra pradesn, tst troo?,'6ilfi;;i" Bhr;;n, eandiaguda, Nagole, Hyderabad - 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.takerhehalt-yearlyaCCoUntsofthesublectCompany(inliquidation).tor the period tto, 6l'io zo23 to 3'1 032024' along with lndependent Auditors' n"po.t o,t"J zl os zozs submitted on 03 06'2025 by f\4/s'
Padmanabha nuo-'nO Co-' Chartered Accountants on record and permission .ry..i" -ut"otded to make the payment of audit fee of iRs.50Ol plus GST to the said auditor' ii. cost of this application (Court fee Stamps and Notary Charges etc ') may be permitted to L" ."i out by the official L
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