M/S.Jagadambay Agri Genetics Limited vs. No Respondent
Facts
The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed a company application seeking directions regarding the half-yearly accounts of M/s. Jagadambay Agri Genetics Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024. The application also prayed for permission to make a payment of Rs. 500/- plus GST towards the audit fee to the independent auditors, M/s. Padmanabha Rao and Co. Furthermore, the Official Liquidator sought permission to meet the costs of the application from the company's available 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 held that the half-yearly accounts of M/s. Jagadambay Agri Genetics Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 27.05.2025, should 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. The reasoning was based on the satisfaction with the reasons mentioned in the supporting affidavit filed by the Official Liquidator and consideration of the filed accounts. Furthermore, permission was accorded 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 if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The operative direction was to allow the application as prayed.
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 petitioner (Official Liquidator) argued for their acceptance to facilitate the company's liquidation proceedings. The revenue or State did not appear to have made any specific arguments on this point as the matter was decided based on the Official Liquidator's submission. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. The petitioner contended that this payment is necessary for the proper conduct of the audit and the liquidation process. No arguments were recorded from the revenue or State regarding this specific payment. 3. Whether the costs of the company application can be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The petitioner argued for this provision to ensure the smooth functioning of the liquidation process. No arguments were recorded from the revenue or State on this procedural aspect.
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 HYDERABA THUR AY, THE SEVENTH DAY OF AI'GUST TWO THOUSAND AND TWENW FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPAN YAPPLICATI N No. 17 of 25 IN COMPANYPETITION NO:42of1 997 ln the matter of the Companies Act, '1956 And ln the matter of Mls.Jagadambay Agri Genetics Limited' (in liqn)
The Official Liquidator, attached to the Hon'blS High Court of Telangana' and Andhra pradesn, rst trool]'6"oiiirri"'iinu*r", eandiaguOa, Nagole, Hyderabad - 500068 . ...APPlicant Application under Section 462 of the Companies Act' 1956 read with Rule 2g8andRule306oftheCompanies(Court)Rules,,tg5gprayingthatthisCourt may be Pleased to: i.takethehalf-yearlyaccountsofthesubjectcompany(inliquidation)for the period trom 01 10.2023 lo 31'O3'2024' along with lndependent Auditors' Report dated 27 O5'2O25 submitted on 03'06 2025 by M/s.
Padmanabha Rao and Co ' Chartered Accountants on record and permissron may be accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor' ii. cost of this application (Court fee Starnps and Notary Charges etc ') may be permitted to be met out by the Official Liquidator from the availabl
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