M/S. Rama Krishna Equity Funds Limited. vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s. Rama Krishna Equity Funds Limited (in liquidation) for the period 01.04.2023 to 30.09.2023. The application also sought permission to pay an audit fee of Rs. 500 plus GST to the Independent Auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The Official Liquidator further requested permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.
Held
The Court held that the half-yearly accounts of the subject Company, which is in liquidation for the period from 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025 submitted by M/s. Padmanabha Rao & Co., Chartered Accountants, should be 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 the said payment from the available funds of the Company (in liquidation), or from the Estate and Establishment Fund account if no fund is available in the Company's account, subject to reimbursement from the funds of the Company (in liquidation) upon realization of its assets. The Court was satisfied with the reasons mentioned 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 01.04.2023 to 30.09.2023, along with the Independent Auditor's Report dated 27.05.2025, should be taken on record. The Official Liquidator argued for the acceptance of these documents to facilitate the company's liquidation process. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500 plus GST to the auditors. The Official Liquidator contended that this payment is necessary for the professional services rendered by the auditors in preparing the report. 3. Whether the costs associated with the Company Application can be met from the company's funds or the Estate and Establishment Fund, with a provision for reimbursement. The Official Liquidator argued for this flexibility to ensure the smooth progression of the liquidation proceedings, especially if the company's immediate funds are insufficient. The Revenue or State did not record any arguments.
Sections Cited
Section 462, Companies Act, 1956, Rule 298, Companies (Court) Rules, 1959, Rule 306, Companies (Court) Rules, 1959
AI-generated summary — verify with the full judgment below
[ 3168 ] 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. 113 ol 2025 IN COMPANY PETITION No: 52 of 1997 ln the matter of the Companies Act, 1956 And ln the matter of M/s. Rama Krishna Equity Funds Limited, The Official Liquidator, attached to the Honble 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 0'1 .04.2023 to 30.09.2023, along with lndependent Auditors Report dated 27.05.2025 submitted on 03. 06. 2025 by Mls.
Padmanabha Rao and Co., Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs. 5001 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
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