M/S.Arrow Metalspin Limited(In Liqn) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana, filed a Company Application (No. 55 of 2025) seeking permission to take on record the half-yearly accounts of M/s. Arrow Metatspin Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023. 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, and to meet the costs of the application from the company's available funds. The auditors' report was dated 13.12.2024 and submitted on 16.12.2024. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959.
Held
The Court perused the auditors' report dated 13.12.2024 with the assistance of the learned counsel for the Official Liquidator and, being satisfied, took the report and the half-yearly accounts on record. Consequently, the Court accorded permission to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The Court also permitted the costs of the application to be met from the available funds of the company in liquidation. The ratio of the decision is that when the Official Liquidator follows the prescribed procedures and submits satisfactory reports, the Court will grant necessary permissions for the smooth functioning of the liquidation process, including payment of audit fees and incidental costs.
Key Issues
1. Whether the Court should accord permission to take the half-yearly accounts of the company in liquidation on record for the period 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024. 2. Whether permission should be granted to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditors. The petitioner (Official Liquidator) argued that the application was in order and sought the reliefs prayed for. The revenue or State did not appear to have made any specific arguments recorded in the judgment.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
Between: ,[ 3168 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUE AY, THE ELEVENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K.LAKSHMAN COMPANY APPLICATION No. 55 of 2025 IN R.C.C. NO: 7 ot 2000 ln the matter of the Companies Act, 1956 And ln the matter of M/s.Arrow Metatspin Limited(in liqn), take the half-yearly accounts of the subject company (in liquidation) for the period from 0'1.10.2022 to 31 .O3.2023, along with lndependent Auditors' Report dated 13.122024 submitted on 16.12.2024 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.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.
The. Official Liquidator, attached to the Hon,ble High Court of Telangana, and 4l9l,iq Pradesh, 1st ftoor, Corporate Bhawan, Bandlaguda, Nagole, HyYderabad _ 500068 ...Applicant Application under Section 462 of the Companies Act, .1956 read with Rule 29g and Rule 306 of the companies (court) 1959 praying that this Hon'ble court may
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