M/S. Reil Products Limited(In Liqn) vs. No Respondent
Facts
The Official Liquidator (OL) for M/s. REIL Products Limited (in liquidation) filed a Company Application before the Telangana High Court. The application sought permission to take on record the half-yearly accounts for the period 01.10.2022 to 31.03.2023, along with the auditor's report dated 10.04.2025. Crucially, the OL also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth, Chartered Accountants. The OL further prayed for permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon asset realization. The application was supported by an affidavit and argued by the OL's counsel.
Held
The Court held that the application was to be ordered. Specifically, the half-yearly accounts of M/s. REIL Products Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, along with the auditor's report dated 10.04.2025 submitted by M/s. Murthy & Kanth, Chartered Accountants, were taken on record. The Court also granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. 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 if company funds were insufficient, with the condition of reimbursement from the company's funds upon realization of its assets. The Court was satisfied with the reasons presented in the supporting affidavit.
Key Issues
1. Whether permission should be granted to 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, as required under the Companies Act, 1956 and the Companies (Court) Rules, 1959. 2. Whether permission should be accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy & Kanth, Chartered Accountants. 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. Petitioner's Arguments: The Official Liquidator, representing the company in liquidation, argued for the approval of the accounts and the payment of audit fees and application costs, citing the necessity of these actions for the proper winding up of the company. The OL relied on the supporting affidavit to justify the requests. Revenue's Arguments: The judgment does not record any specific arguments from the revenue or state, as this was an application by the Official Liquidator concerning the administration of a company in liquidation.
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 THUR AY, THE SEVENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTIGE K.LAKSHMAN COMPANY APPLICATION No. 153 ol 2025 IN R.C.C. No:13/2000 ln the matter of the Companies Act, 1956 And ln the matter of M/s. REIL Products Limited(in liqn)
The Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, lst 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 01 .10.2022 to 31.03.2023, along with Auditor Report dated 10.04,2025 submitted on 05.06.2025 by M/s. Murthy & Kanth, Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs,500/- 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 available funds of the company (in liquidation)
The judgment continues below.
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