M/S.Rupa Steels Limited (In Liqn.) vs. No Respondent
Original PDF →Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application No. 55 of 2026. The application sought permission to take on record the half-yearly accounts of M/s. Rupa Steels Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. It also requested permission to make a payment of Rs. 500/- plus GST towards the audit fee for the independent auditors, M/s. Padmanabha Rao & Co., Chartered Accountants, whose report was submitted on January 30, 2026. Furthermore, the Official Liquidator 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 held that the application was maintainable and ought to be allowed. Regarding the first issue, the Court decided to take the half-yearly accounts of M/s. Rupa Steels Limited (in liquidation) for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 27.01.2026, on record. This aligns with the procedural requirements for companies in liquidation. Concerning the second issue, the Court granted permission to the Official Liquidator to pay the audit fee of Rs. 500/- plus GST to the auditor, recognizing it as a necessary expense for the liquidation process. For the third issue, the Court accorded permission to the Official Liquidator to make the payment for the application costs from the available funds of the company in liquidation or, if no funds were available, from the Estate and Establishment Fund account. This permission was granted subject to reimbursement from the company's funds upon the realization of its assets. The Court found the reasons stated in the affidavit to be satisfactory and considered the half-yearly accounts filed by the Official Liquidator.
Key Issues
1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 27.01.2026, as required under the Companies Act, 1956, and relevant rules. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Chartered Accountants. 3. Whether the Official Liquidator should be permitted to defray the costs of the application from the company's funds or the Estate and Establishment Fund account, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The Official Liquidator argued that the application was filed in accordance with the Companies Act, 1956, and the Companies (Court) Rules, 1959. The accompanying affidavit provided the necessary reasons for the reliefs sought, and the half-yearly accounts and auditors' report were duly submitted. The payment of audit fees and application costs were essential for the proper winding up of the company. Revenue/State: No arguments were recorded from the Revenue or State in the judgment.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE SMT.JUSTICE T. MADHAVI DEVI COMPA NY APPLICATION No.55 of 2026 TN (IOMPANY PETITION No.92 of 1999 DATE: 06.05.2026 Between: The Ofllcial L iquidator, attached to tlie Hon'ble High Court of Telangana and Andhra Pradesh, | " Floor, (lor?orate Bhawan, Bandlaguda, Nagole, Ilyderabad 5()0068. Applicant ORDER -l'his application is filed under Section 462 of Comparries Act, 1956. read rvith Rules 298 and 306 of the Companies (Court) Rutes, 1959, set:king the following reliefs: To take t:re hatf-yearly rccounts of the subject company (in tiquidation) fbr the period from 01'04.2024 to 30'09'2024. along ,"vith Independent Auditors' Report dated 27 '01 2026 submittcd on 30.01.2026 by M/s. Padmanabha Rao & Co', Charlered Accountants on record and permission may be COMPA 55 2026 in cP 92 t999 accorded to make the payment of audit fee of Rs.500/- plus GST to the said auditor. Cost of this application (Court fee Stamps & Notary Charges etc.,) may be permitted to be met out by the Olficial Liquidator from the available funds of the company (in tiquidation) or Estate and Establishment Fund account il no fund is available in the company's account; subject to reimbursement of the same from the funds ol- company (in Iiqn) upon realization of assets of the Conrpany (in liqn) whenever so happened and T-o pass such other order or orders as this l{on'ble Court may deern fit and proper in this regard.
Heard Sri J. Sreenadh Reddy, learned counsel appearing tbr the Officiat Liquidator and perused the affidavit ftled in support of this application.
Having regard to the reasons stated in the accornpanying affidavit and upon considering the half-yearly accounts tited by thc learncd Official Liquidator, this application is allowed with thc lbItowing:- COMPA_s5_2026 in cP 92 t999 a The halt'-yearly accounts of the subject company, which is in liquidation for. rhe period from Ol.O4.2OZ4 to 30.0().2024, along with Independent Auditors, Report dateo 27.0t.2026 submiued on 30.01.2026 by M/s.l)admanabha Rao & Co., Chartered Accountants are taken on record b. Pennission is accorded to the leamed Official Liquidator to pa\ an audit f'ee of Rs.500/_ plus GST to the auditor. Permi ;sion is also accorded to the leamed Official [-iquicator ro rltake the said payment from the available lunds rl the Cornpany (in tiquidation), or from the Estate and E-.tablishrnenr Fund account if no fund is ar,,ailable in the Ccmpany's account, subject to reimbursement from thc funds ol'Companv (in liquidation) upon realization of rts asse t s. / i tRUr c()tY / / . B.SATYAVATHI JOINT REGISTRAR SECTION OFFICETT I'O, Thc official l'itluirrator, N4 /,s Rupa stcers Limited (rn Liqn.) attachea to the High c.rrrt.t I'cla^r;au,r a^tr A.trhra ['r.trosh, r.r Floor, c,r.po.it" Bhawan, Bancllagud-a, Nagolc, Ilvdcraba,l - 500068 ]hc Rcgistrar- .f (.mp611ig5, Mi.ist^' of Corporate Affairs, G.vernment of India, 2nd Flo.r, Corp.r.ate B^a\^ an, . Na1;ole, Bancllagu,a, fnuttlu.l.,u.u- V,G. lJavathn'r1;ar Man(lar, Ranga Reclcrv District, Terangxna state, pin Code-500 06g. f
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TJIGH COURT DATED:06.052026 ORDER COMPANY APPI-IC \TIC)N No.55 ot l()26 In Compar.ry Petition No.92 of l99c) Disposing of thc. APi,lication 0 4 JUt 2[6 > o ( tt (rl[ 5 l4 Cjit:rTCH ED c LJt * o * I (, \t ah !
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.