M/S. Satya Steels Strips (P) Limited(In Liqn) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 151 of 2025. The application sought permission to take on record the half-yearly accounts of M/s. Satya Steels Strips (P) 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 Official Liquidator also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy and Kanth, Chartered Accountants. The application further prayed for permission 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 argued by the counsel for the Official Liquidator.
Held
The Court held that the half-yearly accounts of M/s. Satya Steels Strips (P) Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the Auditor's Report dated 10.04.2025, are to be taken on record. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, the Court permitted the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if the company's account is depleted. This payment is subject to reimbursement from the company's funds upon the realization of its assets. The Court was satisfied with the reasons provided in the supporting affidavit and the consideration of the 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. 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): Argued for the approval of the half-yearly accounts, the payment of audit fees including GST, and the use of available funds for application costs, citing the necessity for proper liquidation proceedings. The Official Liquidator relied on the supporting affidavit and the Companies Act, 1956, and the Companies (Court) Rules, 1959. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.
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 TWENW FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPANY APPLICATION No. 151 of2025 IN COMPANY PETITION No:62 of 1987 ln the matter of the Companies Act, '1956 And ln the matter of M/s. Satya Steels Strips (P) 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) take the half-yearly accounts of the subject company (in liquidation) for the period from O1l1Ol2O22 lo 3110312023, along with Auditor Report dated 10/04/2025 submitted on O5lOOl2O25 by M/s. Murthy and Kanth, Chartered Accountants on record and permission may be accorded to make the payrnent of audit fee of Rs.500/- plus GST to the said auditor. (ii) cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the Official Liquidator from the ava
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