M/S. Arrow Metalspin Limited (In Liqn. ) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana and Andhra Pradesh, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Arrow Metalspin Limited (in liquidation) for the period from 01.04.2022 to 30.09.2022, along with the Auditor's Report dated 12.06.2024. The application also prayed for permission to make the payment of audit fees of Rs. 500/- plus GST, and for miscellaneous expenses to be met from the company's funds or the Estate and Establishment Fund Account. 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 Court perused the auditor's reports with the assistance of the counsel for the Official Liquidator.
Held
The Court accepted the prayer of the Official Liquidator. The half-yearly accounts and the Auditor's Reports for the period 01.04.2022 to 30.09.2022 were taken on file. The Company Application was ordered accordingly. The specific issue regarding the payment of audit fee of Rs. 500/- plus GST and other miscellaneous expenses was implicitly approved by ordering the application accordingly, which included the prayer for such payments. The Court's reasoning was based on the perusal of the auditor's reports and the assistance of the counsel for the Official Liquidator, leading to the acceptance of the prayer. The ratio decidendi is that when an Official Liquidator properly files accounts and reports, and the Court is satisfied after perusal, such accounts and reports are taken on record, and consequential expenses are permitted.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and the 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 fact and procedure). The Official Liquidator argued that the application was filed in accordance with the relevant provisions of the Companies Act and Rules, seeking the Court's approval to record the accounts and permit payment of audit fees and other expenses. The revenue or State did not appear to have made any arguments as the judgment does not record any such submissions.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3405 ] FRIDAY, THE EIGHTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE JUSTICE MOUSHUMI BHATTACHARYA COMPANY APPLICATION No. 40 of 2024 IN ln the Matter of the Companies Act, 1956 And ln the Matter of M/s. Arrow Metalspin Limited (ln liqn.)
Between: The Official Liquidator, attached to the Honble High Court of Telangana, and Andhra Pradesh, l st 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, 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 from 01.04.2022 lo 30.09.2022, along with Auditor Report daled 12 06. 2024 submitted on 18.06.2024 by M/s. Padmanabha Rao and Co. Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs. 500i- plus GST.
Cost of this application and any miscellaneous expenses 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 avail
The judgment continues below.
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