M/S. Sree Jagannath Steels 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 permission to take on record the half-yearly accounts of M/s. Sree Jagannath Steels Limited (in liquidation) for the period from 01/10/2022 to 31/03/2023. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy and Kanth, Chartered Accountants. The applicant further requested 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 from the Official Liquidator and heard by the High Court.
Held
The Court took on record the half-yearly accounts of M/s. Sree Jagannath Steels Limited (in liquidation) for the period from 01/10/2022 to 31/03/2023, along with the auditor's report dated 10/04/2025. The Court granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy and Kanth, Chartered Accountants. 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 no funds were available in the company's account. This payment is subject to reimbursement from the funds of the company upon realization of its assets. The Court was satisfied with the reasons mentioned in the supporting affidavit and considered the filed half-yearly accounts.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01/10/2022 to 31/03/2023, along with the auditor's report dated 10/04/2025. The Official Liquidator argued for the acceptance of these accounts and reports as part of the liquidation process. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditors. The Official Liquidator contended that this fee is necessary for the audit of the company's accounts during liquidation. 3. Whether the costs of the Company Application should be permitted to be met from the company's funds or the Estate and Establishment Fund, subject to reimbursement. The Official Liquidator argued for this provision to ensure the smooth functioning of the liquidation process, especially if the company's funds are insufficient.
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 JLISTICE K.LAKSHMAN COMPANY APPLICATION No.130 of 2025 IN COMPANY PETITION Nos:12196 & 236/1998 ln the matter of the Companies Act, 1956 And ln the matter of [\4/s. Sree Jagannath Steels Limited(in liqn)
The Official Liquidator, attached to the Honourable High Court of Telangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandlaguda, 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) ii) take the half-yearly accounts of the subject company (in liquidation) for the period from 01 /1 0/2022 to 3110312023, along with Auditor Report dated 1OlO4l2O25 submitted on 05106/2025 by l\,ills. t\,4urthy and Kanth, Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500l 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
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