M/S.Magna Foundriinier Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application (CA No. 50 of 2025) under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought to take on record the half-yearly accounts of Magna Foundrinier Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023. 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, whose report was dated December 13, 2024. The applicant further sought permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund.

Held

The Court decided to allow the Company Application. It took on record the half-yearly accounts of the subject company (in liquidation) for the period from October 1, 2022, to March 31, 2023, along with the auditors' report. The Court also granted permission to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. Furthermore, the costs of the application were permitted to be met from the available funds of the company (in liquidation). The Court noted that the auditor's report was perused and satisfied, leading to its acceptance. The judgment also stated that miscellaneous petitions, if any, pending in the Company Application shall stand closed. There was no order as to costs beyond the permission to meet the application costs from company funds.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period October 1, 2022, to March 31, 2023, along with the Independent Auditors' Report dated December 13, 2024? (Question of fact and procedure turning on Section 462 of the Companies Act, 1956 and Rules 298 and 306 of the Companies (Court) Rules, 1959). 2. Whether permission should be granted to the Official Liquidator to make payment of audit fee of Rs. 500/- plus GST to the auditor? (Question of fact and procedure turning on Section 462 of the Companies Act, 1956 and Rules 298 and 306 of the Companies (Court) Rules, 1959). Petitioner's Arguments: The Official Liquidator, through their counsel, presented the application seeking the Court's approval for the accounts and the payment of audit fees. No specific arguments were recorded in the judgment beyond the prayer in the application. Revenue/State's Arguments: No arguments were recorded from the revenue or state in the judgment.