M/S.Allwyn Watches Limited(In Liqn) vs. No Respondent

Facts

The Official Liquidator, attached to the High Court for the State of Telangana and Andhra Pradesh, filed a Company Application seeking permission to take on record the half-yearly accounts of M/s Allwyn Watches Limited (in liquidation) for the period from 01.04.2023 to 30.09.2023. The application also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the independent auditors, M/s Murthy & Kanth, Chartered Accountants, whose report was submitted on 08.07.2025. The Official Liquidator further sought permission to meet the costs of the application from the company's available 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 held that the half-yearly accounts of the subject Company, which is in liquidation for the period from 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 04.07.2025, submitted on 08.07.2025 by M/s. Murthy & Kanth, Chartered Accountants, are to be taken on record. The Court also granted permission to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the Auditor. Furthermore, permission was accorded to the Official Liquidator to make the said payment from the available funds of the Company (in liquidation), or from the Estate and Establishment Fund account if no fund is available in the Company's account, subject to reimbursement of the same from the funds of the Company (in liquidation) upon realization of its assets. The Court was satisfied with the reasons mentioned in the supporting affidavit and considered the filed accounts.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of the company in liquidation for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 04.07.2025. This issue turns on the procedural requirements for winding up proceedings under the Companies Act, 1956 and the Companies (Court) Rules, 1959. 2. Whether permission should be granted to the Official Liquidator to make payment of the audit fee of Rs. 500/- plus GST to the auditors. This issue involves the authority of the Official Liquidator to incur such expenses and the applicability of GST on audit fees in the context of a company in liquidation. Contentions: Petitioner (Official Liquidator): The Official Liquidator argued that the application was filed in compliance with the relevant rules and sought the Court's approval for the accounts and payment of audit fees. Revenue/State: No specific arguments were recorded for the Revenue or State in the judgment.