M/S. Reliance Rubber Works Limited(In Liqn) vs. Nil
Facts
The Official Liquidator, attached to the High Court of Telangana, filed a Company Application No. 86 of 2025 in R.C.C. No. 16 of 1994 concerning M/s. Reliance Rubber Works Limited (in liquidation). The application sought permission to take on record the half-yearly accounts for the period April 1, 2023, to September 30, 2023, along with an Independent Auditor's Report dated May 27, 2025. It also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditor, M/s. Padmanabha Rao and Co., Chartered Accountants. Furthermore, the application 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 Official Liquidator's counsel.
Held
The Court held in favor of the Official Liquidator on all counts. Firstly, it ordered that the half-yearly accounts of M/s. Reliance Rubber Works Limited (in liquidation) for the period April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report dated May 27, 2025, be taken on record. Secondly, the Court accorded permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. Thirdly, permission was granted 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 that such payments would be reimbursed from the company's funds upon realization of its assets. The Court was satisfied with the reasons presented in the supporting affidavit and considered the filed accounts.
Key Issues
1. Whether the half-yearly accounts of the company in liquidation for the period April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report dated May 27, 2025, should be taken on record? The Official Liquidator argued for taking the accounts and report on record, citing their submission and the need for procedural compliance. The Revenue or State did not record any specific arguments on this issue. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditor? The Official Liquidator contended that this payment is necessary for the audit of the company's accounts. The Revenue or State did not record any specific arguments on this issue. 3. Whether the costs of the application can 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. The Revenue or State did not record any specific arguments on this issue.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[31681 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNE AY, THE SIXTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPANY APPLICATION No. 86 of 2025 IN R.C.C. No: '16 of 1994 ln the matter of the Companies Act, 1956 And ln the matter of M/s. Reliance Rubber Works Limited (in liqn), The Official Liquidator, attached to the Honble Hig Andhra Pradesh, First floor, Corporate Bhawan. Band h Court of Telangana and laguda, Nagole, Hyderabad ...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 042023 to 30.09.2023, along with lndependent Auditors'
Repo( dated 27.05.2025 submitted on 03.06.2025 by M/s. Padmanabha Rao and Co., 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 available funds
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.