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 Company Application No. 42 of 2025. The application sought to take on record the half-yearly accounts of M/s. Allwyn Watches Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023. It also requested permission to make a payment of Rs. 500/- plus GST as audit fee to the independent auditors, M/s. Padmanabha Rao and Co., Chartered Accountants, who submitted their report on December 16, 2024. The application was filed under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959. The Official Liquidator also sought permission to meet the cost of the application from the company's available funds or the Estate and Establishment Fund.

Held

The Court held that the application is allowed. The half-yearly accounts of M/s. Allwyn Watches Limited (in liquidation) for the period from October 1, 2022, to March 31, 2023, along with the Independent Auditors' Report dated December 13, 2024, were taken on record. The Court found the auditors' report satisfactory. Consequently, permission was granted to the Official Liquidator to make the payment of the audit fee of Rs. 500/- plus GST to the auditor. The cost of the application was also permitted to be met from the available funds of the company in liquidation. The Court also noted that miscellaneous petitions, if any, pending in the Company Application would stand closed. No specific issue was left undecided.

Key Issues

1. Whether the Court should take on record the half-yearly accounts of M/s. Allwyn Watches Limited (in liquidation) for the period from 01.10.2022 to 31.03.2023, along with the Independent Auditors' Report dated 13.12.2024, as required under Section 462 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959? The Official Liquidator argued that the auditors' report was in order and sought the Court's approval to take it 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 auditor? The Official Liquidator contended that this payment was necessary for the services rendered by the auditors. The revenue or State did not appear to have made any arguments as the matter pertains to the liquidation of a company and the approval of accounts and fees by the Court.