M/S. Obra Chemicals Limited.(In Liqn.) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court for the State of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Obra Chemicals Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS and Associates. The application was supported by an affidavit from the Official Liquidator and argued by their counsel. The Court was asked to permit the meeting of application costs from the company's funds or the Estate and Establishment Fund if company funds were insufficient.
Held
The Court accepted the prayer made by the Official Liquidator. The half-yearly accounts of M/s. Obra Chemicals Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023, along with the auditor's report submitted by M/s. KBS and Associates, were taken on record. The Court ordered accordingly, signifying approval of the submitted financial documents and the process undertaken by the Official Liquidator. The specific issue of paying the audit fee of Rs. 500/- plus GST was implicitly approved by the overall acceptance of the application. The Court did not expressly leave any issue undecided.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and the auditor's report for M/s. Obra Chemicals Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, as submitted by the Official Liquidator. This issue turns on the Court's procedural powers under the Companies Act, 1956 and the Companies (Court) Rules, 1959. Contentions: Petitioner (Official Liquidator): Argued for the acceptance of the half-yearly accounts and auditor's report, and for permission to pay the audit fee, as these are necessary steps in the liquidation process. Relied on Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. Revenue/State: No arguments were recorded for the revenue or State in the judgment.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
Between: IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE FOURTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENW FIVE PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR COMPANYAPPLICATION No. 11 of 2025 IN COMPANY PETITION NO: 158 of 1997 ln the matter of the Companies Act, 1956 And ln the matter of M/s. Obra Chemicals Limited.(ln Liqn.), take the half-yearly accounts of the subject company (in liquidation) for the period from 01.'10.2022 to 31 .O3.2O23, along with Auditors Report daled 01 .11.2024 submitted on 05.1 '1.2024 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 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 of the company (in liquidation) or Estate and Establishment Fund account if no fund is available in the company's account.
The Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderabad - 500068 ...Applicant Application Under Section 462 of the Compani
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