M/S. Reliance Rubber Works Limited.(In Liqn) vs. No Respondent
Facts
The Official Liquidator (OL) of M/s. Reliance Rubber Works Limited (in liquidation) filed a Company Application before the Telangana High Court. The application sought to take on record the half-yearly accounts for the period April 1, 2022, to September 30, 2022, along with the Auditor's Report dated June 17, 2024, submitted by M/s. KBS and Associates. The OL also requested permission to pay the audit fee of Rs. 500/- plus GST to the auditor and to meet the cost of the application from the company's funds or the Estate and Establishment Fund. The application was supported by an affidavit from the OL and argued by his counsel.
Held
The Court held that the half-yearly accounts and the Auditor's Reports of M/s. KBS & Associates, Chartered Accountants, for the company in liquidation for the period April 1, 2022, to September 30, 2022, should be taken on record. The Court perused the Auditor's Reports with the assistance of the learned counsel for the Official Liquidator and found the prayer to be acceptable. The reasoning was based on the procedural requirements for companies in liquidation, as governed by the Companies Act and the Companies (Court) Rules. The Court explicitly accepted the prayer made by the Official Liquidator. The specific issue of the payment of audit fee and application costs was implicitly accepted by the overall acceptance of the application.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and the Auditor's Report for the company in liquidation for the period April 1, 2022, to September 30, 2022? (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). 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 and application costs, as per the statutory requirements and the company's financial status. Revenue/State: No arguments 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
: IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE EIGHTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE JUSTICE MOUSHUMI BHATTACHARYA COMPANY APPLICATION No. 43 ot 2024 IN R.C.C. No. 16 of 1956 ln the Matter of the Companies Act, 1956 And ln the Matter of M/s. Reliance Rubber Works Limited.(in liqn), Between: The Official Liquidator, attached to the Honble High Court of Te Al9l,tq Pradesh, 1St floor, Corporate Bhawan, Bandlaguda, Nagote 500068 Iangana, and Hvd APP erabad - LICANT 462 Application Under Section of the Companies Act, '1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules, '1959) 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 trom 01.04.2022 to 30.O9.2022, along with Auditor's Report dated 17 06.2024 submitted on 20.06.2024 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 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 a
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