In The Matter Of M/S.Midwest Iron And Steel Limited.(In Liqn.) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed a Company Application No. 18 of 2025. The application sought to take on record the half-yearly accounts of M/s. Midwest Iron and Steel 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. The Official Liquidator also sought permission to make a payment of Rs. 500/- plus GST to the auditor for their services. The application was supported by an affidavit filed by the Official Liquidator and argued by his counsel. The Court was asked to consider the application and pass appropriate orders.
Held
The Court held that the half-yearly accounts of M/s. Midwest Iron and Steel 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, should be taken on record. The Court also granted permission to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the said auditor. The reasoning was based on the perusal of the Auditors' Report with the assistance of the counsel for the Official Liquidator, and the prayer made in the Company Application was accepted. The operative direction was to order the Company Application accordingly. No issues were expressly left undecided.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and the Auditors' Report for the period 01.10.2022 to 31.03.2023, as submitted by the Official Liquidator in relation to M/s. Midwest Iron and Steel Limited (in liquidation)? (Question of procedure) 2. Whether permission should be granted to the Official Liquidator to make the payment of audit fee of Rs. 500/- plus GST to M/s KBS and Associates? Contentions: Petitioner (Official Liquidator): The Official Liquidator argued that the application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The purpose was to formally place the company's financial records and the auditor's findings before the Court for its perusal and approval. The payment of audit fees, including GST, was a necessary expense for the liquidation process. Revenue/State: No arguments were recorded for the Revenue or State in this judgment.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3166 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE FOURTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE T.VINO.D KUMAR COMPANY APPLICATION No. 18 of 2025 ln R.C.C. NO: 10 OF 2001 ln the matter of the Companies Act, 1956 And ln the matte of M/s. Midwest lron and Steel Limited. (ln Liqn.)
Between: The Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1'' 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, 'l 959). praying that this Hon'ble Court may be pleased to i) take the half-yearly accounts of the subject company (in liquidation) for the period from 01.10 2022 lo 31 .03.2023, along with Auditors' Report dated 01 .11.2024 submitted on 05.11.2024 by M/s KBS and Associates., 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, ii) cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the Official Li
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.