Allwyn Watches LTD Rep By Official Liquidator vs. Nil

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. Allwyn Watches Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024. The application also sought permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s. KBS & 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 filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The learned counsel for the Official Liquidator presented arguments, and the Court perused the supporting affidavit.

Held

The Court held that the application filed by the Official Liquidator was allowed. Specifically, the half-yearly accounts of M/s. Allwyn Watches Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026, submitted on January 22, 2026, by M/s. KBS & Associates, Chartered Accountants, were taken on record. Furthermore, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Court also granted permission to the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund account if no funds were available in the company's account, subject to reimbursement from the company's assets upon realization. The reasoning was based on the reasons stated in the accompanying affidavit and consideration of the filed accounts.

Key Issues

1. Whether the half-yearly accounts of the company in liquidation for the period 01.04.2024 to 30.09.2024, along with the Independent Auditors' Report dated 12.01.2026, should be taken on record, as per the provisions of the Companies Act, 1956, and the Companies (Court) Rules, 1959? 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund, as sought under the relevant rules? Contentions of the Petitioner (Official Liquidator): The Official Liquidator argued for the acceptance of the half-yearly accounts and the auditors' report, and sought permission to pay the audit fee and application costs from the available funds, as detailed in the affidavit filed in support of the application. The Official Liquidator relied on the provisions of Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. Contentions of the Revenue/State: No specific arguments were recorded for the Revenue or State in the judgment.