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 (No. 57 of 2025) under Section 462 of the Companies Act, 1956, and Rules 298 and 306 of the Companies (Court) Rules, 1959. The application sought to place on record the half-yearly accounts of M/s. Allwyn Auto Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023, along with an Independent Auditors' Report dated December 13, 2024. The Official Liquidator also prayed for permission to pay an audit fee of Rs. 500/- plus GST to the auditors, M/s. Padmanabha Rao and Co., Chartered Accountants. The application further requested permission to meet the costs of the application from the company's available funds or the Estate and Establishment Fund.

Held

The Court considered the application filed by the Official Liquidator and perused the auditors' report dated December 13, 2024, with the assistance of the learned counsel for the Official Liquidator. Being satisfied with the report, the Court decided to take the half-yearly accounts of the subject company (in liquidation) for the period from October 1, 2022, to March 31, 2023, along with the auditors' report, on record. Consequently, permission was accorded to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The Court also directed that the cost of the application be met from the available funds of the company (in liquidation). The ratio decidendi is that the High Court, in its supervisory role over liquidations, will grant necessary permissions for routine administrative and financial matters upon being satisfied with the documentation and procedural compliance, as evidenced by the auditors' report. The Court also ordered that any pending miscellaneous petitions in the Company Application would stand closed.

Key Issues

1. Whether the half-yearly accounts of the company (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024, should be taken on record. 2. Whether permission should be granted to the Official Liquidator 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 (in liquidation) or the Estate and Establishment Fund. Petitioner's Arguments: The Official Liquidator, through their counsel, presented the application seeking the court's approval for the accounts and the payment of audit fees. The arguments focused on the procedural requirements for liquidating a company and the necessity of obtaining court sanction for such payments and record-keeping. Revenue/State's Arguments: The judgment does not record any specific arguments from the revenue or state. The proceedings appear to be administrative in nature, seeking the court's sanction for actions taken by the Official Liquidator.