M/S. Safe Pack Polymers Limited(In Liqn) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application (No. 84 of 2026) in the matter of M/s Sri Obra Chemicals Limited (in Liquidation) (C.P. No. 158 of 1997). The application, filed under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959, sought to take on record the half-yearly accounts of the company for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 09.02.2026. Crucially, it also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy & Kanth, Chartered Accountants. Additionally, the Official Liquidator requested permission to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement.
Held
The Court held in favor of the Official Liquidator on all points. Firstly, the Court ordered that the half-yearly accounts of the subject company, which is in liquidation, for the period from 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 09.02.2026, be taken on record. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy & Kanth, Chartered Accountants. Thirdly, the Court also granted permission 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 account if no fund was available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The reasoning was based on the reasons stated in the accompanying affidavit and the consideration of the filed accounts.
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 09.02.2026? The Official Liquidator argued for the acceptance of these documents as part of the company's financial oversight. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s Murthy & Kanth, Chartered Accountants? The Official Liquidator contended that this payment was necessary for the audit of the company's accounts and was a standard operational expense. 3. Whether the costs of the application and the audit fee payment should be permitted to be met from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement? The Official Liquidator sought this permission to ensure the smooth functioning of the liquidation process, especially if the company's immediate funds were 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 WEDNE AY,THE SIXTH DAY OF IVIAY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SMT JUSTICE T.MADHAVI DEVI COMPANY APPLICATION No.84 of 2026 IN C.P.No.158 of 1997 ln the matter of the Companies Act, 1956 AND ln the matter of M/s Sri Obra Chemicals Limited (ln Liqn)
The Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad -500068. ...APPLICANT Application Under Section 462 of Companies Act, '1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules 1959 praying that this Hon'ble Court may be pleased to : take the half-yearly accounts of the subject company (in liquidation) for the period from 01 .04.2024 to 30.09.2024, along with lndependent Auditors' Report dated 09.02.2026 submitted on 11.02.2026 by ttrl/s Padmanabha Rao & Co., 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 judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
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.