M/S. Reil Products Limited.(In Liqn) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed Company Application No. 87 of 2024 in R.C.C. No. 13 of 2000. The application sought to take on record the half-yearly accounts of M/s. REIL Products Limited (in liquidation) for the period 01.04.2022 to 30.09.2022, along with the auditor's report dated 17.06.2024 submitted by M/s. KBS and Associates. The Official Liquidator also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditor and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit and argued by the counsel for the Official Liquidator.
Held
The Court accepted the prayer made by the Official Liquidator. The half-yearly accounts of M/s. REIL Products Limited (in liquidation) for the period from 01.04.2022 to 30.09.2022, along with the auditor's report dated 17.06.2024 submitted by M/s. KBS and Associates, were taken on file. The Court did not explicitly address the payment of audit fees or the costs of the application in its final order, but the acceptance of the accounts and reports implies a procedural approval. The ratio decidendi is that the High Court, in its supervisory role over companies in liquidation, must take on record the financial statements and auditor's reports presented by the Official Liquidator to ensure transparency and compliance in the winding-up process. The operative direction was to take the documents on record.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and auditor's report of the company in liquidation for the period 01.04.2022 to 30.09.2022, as submitted by the Official Liquidator. (Question of procedural compliance under the Companies Act, 1956 and Companies (Court) Rules, 1959). Petitioner's Argument (Official Liquidator): The Official Liquidator, acting in their statutory capacity, has filed the application to present the company's financial status and auditor's findings to the Court for its perusal and record. The application is in compliance with the relevant provisions of the Companies Act and Rules, and the prayer for taking the accounts and reports on record is a necessary step in the liquidation process. Revenue/State's Argument: No argument was recorded for the revenue or state in this matter.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNE AY ,THE THIRTIETH DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HON'BLE JUSTICE MOUSHUMI BHATTACHARYA COMPANY APPLICATION NO. 87 OF 2024 IN R.C.C. No. 13 OF 2000 ln the mater of the Companies act, 1956 And ln the matter of M/s. REIL Products 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 Company Application Under Section 462 of the Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies ( Court ) Rules, '1 959 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 .04.2022 to 30.09.2022, along with Auditor's Report dated 17.06.2024 submitted on 20.06.2O24 by Mls. KBS and Associates., Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500i- plus GST to 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 ava
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