M/S.Allwvn 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 M/s Allwyn Auto Limited (in liquidation) for the period from October 1, 2023, to March 31, 2024. The application also sought permission to pay an audit fee of Rs. 500 plus GST to the independent auditors, M/s Murthy & Kanth, Chartered Accountants, and to cover the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement upon realization of assets. The application was supported by an affidavit and heard by the High Court.

Held

The Court, being satisfied with the reasons provided in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered the Company Application. Specifically, the Court took on record the half-yearly accounts of M/s Allwyn Auto Limited (in liquidation) for the period from 01.10.2023 to 31.03.2024, along with the Auditor's Report dated 04.07.2025. Permission was granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Furthermore, permission was accorded 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 the company's account was insufficient, subject to reimbursement from the company's funds upon realization of its assets. The Court did not expressly leave any issues undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period from 01.10.2023 to 31.03.2024, along with the Independent Auditors' Report dated 04.07.2025. 2. Whether permission should be granted to make the payment of audit fee of Rs. 500/- plus GST to the auditors. 3. Whether the costs of the application can be met from the available funds of the company or the Estate and Establishment Fund, subject to reimbursement. Arguments for the Petitioner (Official Liquidator): The Official Liquidator, through his counsel, presented the half-yearly accounts and the auditor's report. He sought the Court's approval to take these on record and to permit the payment of audit fees and application costs from the company's funds or related accounts, as detailed in the supporting affidavit. No specific statutory provisions or precedents were explicitly mentioned in the judgment regarding the arguments for the petitioner, beyond the general context of company liquidation proceedings. Arguments for the Revenue/State: The judgment does not record any specific arguments or contentions from the Revenue or State.