M/S. Monarch Pipes Limited.(In Liqn.) vs. No Respondent
Facts
This matter concerns a Company Application filed by the Official Liquidator of M/s. Monarch Pipes Limited (in liquidation). The Official Liquidator sought to take on record the half-yearly accounts for the period from 01.10.2022 to 31.03.2023, along with the Auditors' Report dated 01.11.2024 submitted by M/s. KBS and Associates. The application also requested permission to pay an audit fee of Rs. 500/- plus GST to the auditors and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. 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 accepted the prayer made by the Official Liquidator. The half-yearly accounts of M/s. Monarch Pipes Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Auditors' Report dated 01.11.2024 submitted by M/s. KBS and Associates, were taken on record. The Court also ordered accordingly, implying that the permission to pay the audit fee and meet the application costs would be implicitly granted as part of the overall order to proceed with the liquidation process as presented. The reasoning was based on the Official Liquidator's submission of the required financial documents and reports, which are essential for the proper conduct of the liquidation proceedings. The ratio decidendi is that the High Court, in its supervisory role over liquidations, will approve the recording of accounts and associated expenses when properly submitted by the Official Liquidator.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and Auditors' Report of M/s. Monarch Pipes Limited (in liquidation) for the period 01.10.2022 to 31.03.2023, as submitted by the Official Liquidator. 2. Whether permission should be granted to pay the audit fee of Rs. 500/- plus GST to M/s. KBS and Associates. Petitioner's Arguments: The Official Liquidator, through his counsel, presented the half-yearly accounts and the Auditors' Report for the specified period. The primary argument was to seek the Court's approval to formally record these documents and to permit the payment of the audit fee, which is a necessary expense for the liquidation process. Revenue/State's Arguments: No arguments were recorded on behalf of the revenue or the State in this judgment.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
]N THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAO FRIDAY,THE FOURTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENry FIVE PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR COMPANYAP PLlCATloN No. 160F 2025 IN R.C.C. NO:2 oF 2006 ln the matter of the Comoanies Act. 1956 And ln the matter of M/s. Monarch Pioes Limited ( ln Liqn.)
Between: This application coming on for orders, upon reading the Judge's summons and the affidavit dated 06.01.2025 fited by Sri Uttam Kumar Sahoo, official Liquidator attached to the High court for the state of relangana, in support of the company Application and upon hearing the arguments of Sri J. Sreenath Reddy, Counsel for the Official Liquidator for the Applicant. M/s. Monarch. Pin_es Limited.(ln Liqn.), The officiat Liquidator, attached to the l-lonourable High court of .Telangana, and Andhra pradesh, 'l st floor., corporate Bhawan, Bandlaguda, Nagole, Hyderabad -500068 ...AppLlCANT Anplication under section 462 of the companies Act, 19s6 read with Rure 298 and Rule 306 of the companies ( court ) Rul6s, 'r959 piaying tnaiirrJnon;ote Court may be pleased to i) take the half-yearly accounts of the subject company (in liquidation) for the period from
The judgment continues below.
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