In The Matter Of M/S.Allwyn Auto Limited (In Liqn) vs. No Respondent

Facts

The Official Liquidator (OL) of M/s Allwyn Auto Limited (in liquidation) filed a Company Application before the High Court for the State of Telangana. The application sought permission to take on record the half-yearly accounts for the period 01.04.2023 to 30.09.2023, along with the Independent Auditors' Report dated 04.07.2025. The OL also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Murthy and Kanth, Chartered Accountants. Furthermore, the application requested 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 company assets. The application was supported by an affidavit and heard by the Court.

Held

The Court, having been satisfied with the reasons presented in the supporting affidavit and having considered the half-yearly accounts filed by the Official Liquidator, ordered as follows: Firstly, the half-yearly accounts of M/s Allwyn Auto Limited (in liquidation) for the period 01.04.2023 to 30.09.2023, along with the Auditor's Report dated 04.07.2025, were taken on record. Secondly, permission was accorded to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. Thirdly, permission was also granted to the Official Liquidator to make this payment from the available funds of the company in liquidation, or from the Estate and Establishment Fund if no funds were available in the company's account, subject to reimbursement from the company's funds upon realization of its assets. The Court found no impediment to granting these permissions.

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. 2. Whether permission should be granted to the Official Liquidator to pay an audit fee of Rs. 500/- plus GST to the auditors. 3. Whether permission should be granted to the Official Liquidator to meet the costs of the application from the company's funds or the Estate and Establishment Fund, subject to reimbursement. Contentions: Petitioner (Official Liquidator): The OL, through its counsel, presented the half-yearly accounts and auditor's report and sought the Court's approval for the same. The OL also requested permission to disburse the audit fee and application costs as outlined in the application, citing the need for these services in the liquidation process. The OL relied on the supporting affidavit detailing the reasons for the application. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.