M/S. Rupa Steels Limited(In Lipn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 111 of 2025. The application sought to take on record the half-yearly accounts of M/s. Rupa Steels Limited (in liquidation) for the period April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report dated May 27, 2025. The Official Liquidator also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditor, M/s. Padmanabha Rao and Co., Chartered Accountants. Additionally, the application requested 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.

Held

The Court held that the application should be ordered. Specifically, it was decided that the half-yearly accounts of M/s. Rupa Steels Limited (in liquidation) for the period April 1, 2023, to September 30, 2023, along with the Independent Auditor's Report dated May 27, 2025, submitted by M/s. Padmanabha Rao & Co., Chartered Accountants, should be taken on record. Furthermore, permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Court also accorded permission for 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 reasoning was based on the satisfaction with the reasons mentioned in the supporting affidavit and consideration of 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? 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor? 3. Whether the costs of the application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund, subject to reimbursement? Petitioner's Arguments: The Official Liquidator, through their counsel, presented the application with supporting affidavit and accounts. The arguments focused on the necessity of these steps for the proper winding up of the company and the payment of professional services rendered. No specific statutory provisions were explicitly argued by the petitioner, but the application was made under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. Revenue/State's Arguments: The judgment does not record any specific arguments from the revenue or state. The matter proceeded based on the Official Liquidator's application and the court's satisfaction with the supporting affidavit.