M/S. Obra Chemicals 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. Obra Chemicals Limited (in liquidation) for the period from 01.04.2022 to 30.09.2022. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the auditor, M/s. KBS and Associates, Chartered Accountants, 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 from the Official Liquidator and heard by the High Court.
Held
The Court accepted the prayer made in the Company Application. It ordered that the half-yearly accounts of M/s. Obra Chemicals 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, Chartered Accountants, be taken on record. The Court also implicitly granted permission for the payment of the audit fee and the costs of the application, as these were part of the prayer accepted. The reasoning was based on the perusal of the auditor's reports with the assistance of the counsel for the Official Liquidator, and the acceptance of the prayer made by the Official Liquidator. The ratio decidendi is that the High Court, in its supervisory capacity over companies in liquidation, will facilitate the necessary administrative and financial steps for the proper winding up of the company, including the acceptance of accounts and payment of professional fees, upon being satisfied with the submissions made by the Official Liquidator.
Key Issues
1. Whether the Court should take on record the half-yearly accounts and auditor's report for M/s. Obra Chemicals Limited (in liquidation) for the period 01.04.2022 to 30.09.2022, as submitted by the Official Liquidator. 2. Whether permission should be granted to pay the audit fee of Rs. 500/- plus GST to the auditor, M/s. KBS and Associates. 3. Whether the costs of the Company Application can be met from the available funds of the company in liquidation or the Estate and Establishment Fund. Petitioner's Arguments: The Official Liquidator, representing the company in liquidation, presented the half-yearly accounts and auditor's report and sought the Court's permission for the payments as outlined in the application. The counsel for the Official Liquidator argued for the acceptance of the prayer. Revenue/State's Arguments: The judgment does not record any specific arguments from the revenue or state. The matter proceeded based on the application filed by the Official Liquidator.
Sections Cited
Section 462, Companies Act, 1956, Rule 298, Companies (Court) Rules, 1959, Rule 306, Companies (Court) Rules, 1959
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUE AY, THE FIFTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE JUSTICE MOUSHUMI BHATTACHARYA COMPANY APPLICATION No. 1 8 ot 2024 IN COMPANY PETITION NO: 1 58 of 1997 ln the Matter of the Companies Act, 1956 AND ln the Mafter of M/s. Obra Chemicals Limited.(in liqn), The. Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandlaguda, Nagole, H/derabad - 500068 ...APPLICANT Application under Section 462 o'f ihe Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules, 1959) praying that this Honourable 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 20.06.2024 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. ii) cost of this application (Court fee Stamps and Notary Charges etc.,) may be permitted to be met out by the Official Liquidator from
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