M/S.Allwyn Auto 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 permission to take on record the half-yearly accounts of Mis. Allwyn Auto 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 auditors, M/s. KBS & Associates, and to meet the costs of the application from the company's funds or the Estate and Establishment Fund. The auditors' report was dated January 12, 2026, and submitted on January 22, 2026. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959.

Held

The Court held that the application filed by the Official Liquidator was to be allowed. Specifically, the Court ordered that the half-yearly accounts of Mis. Allwyn Auto Limited (in liquidation) for the period from April 1, 2024, to September 30, 2024, along with the Auditors' Report dated January 12, 2026, submitted on January 22, 2026, by M/s. KBS & Associates, Chartered Accountants, be taken on record. Furthermore, permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditor. The Court also accorded permission for 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, with the condition of reimbursement from the company's funds upon realization of its assets. The reasoning was based on the reasons stated in the accompanying affidavit and the consideration of the filed half-yearly accounts.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period April 1, 2024, to September 30, 2024, along with the Independent Auditors' Report dated January 12, 2026. 2. Whether permission should be granted to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. KBS & Associates. 3. Whether the Official Liquidator should be permitted to meet the costs of the application from the available funds of the company (in liquidation) or the Estate and Establishment Fund, subject to reimbursement. Petitioner's arguments: The Official Liquidator, through his counsel, presented the application with the supporting affidavit and auditors' report, seeking the Court's approval for the stated reliefs. The arguments focused on the procedural necessity of obtaining court sanction for the accounts, audit fees, and application costs in the winding-up process. Revenue's arguments: The judgment does not record any specific arguments from the revenue or state, as this was an application by the Official Liquidator for administrative and financial approvals related to a company in liquidation.