M/S.Allwyn Watches Limited (In Liqn.) vs. No Respondent
Facts
The Official Liquidator, attached to the High Court of Telangana, filed a Company Application seeking to take on record the half-yearly accounts of M/s. Allwyn Watches Limited (in liquidation) for the period from 01.04.2022 to 30.09.2022, along with the Auditor's Report dated 12.06.2024. The application also sought permission to make the payment of audit fee of Rs. 5000/- plus GST, and for miscellaneous expenses to be met from the company's funds or the Estate and Establishment Fund. 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 Court perused the auditors' reports with the assistance of the counsel for the Official Liquidator.
Held
The Court accepted the prayer of the Official Liquidator. It ordered that the half-yearly accounts of M/s. Allwyn Watches Limited (in liquidation) for the period from 01.04.2022 to 30.09.2022, along with the Auditor's Report dated 12.06.2024 submitted by M/s. Padmanabha Rao and Co., Chartered Accountants, be taken on record. The Court also ordered that the Company Application be disposed of accordingly. The specific issue of the payment of audit fee of Rs. 5000/- plus GST and other miscellaneous expenses was implicitly approved by the acceptance of the application and the order to proceed, as these were part of the prayers made by the Official Liquidator. The ratio decidendi is that when an Official Liquidator properly presents accounts and auditor's reports in accordance with the Companies Act and Rules, the Court should facilitate their recordal to ensure transparency and proper winding up proceedings.
Key Issues
1. Whether the half-yearly accounts and auditor's report of the company in liquidation for the period 01.04.2022 to 30.09.2022 should be taken on record by the Court, as prayed by the Official Liquidator under Section 462 of the Companies Act, 1956 read with Rules 298 and 306 of the Companies (Court) Rules, 1959? Contentions: Petitioner (Official Liquidator): The Official Liquidator, acting in accordance with the Companies Act and Rules, sought the Court's permission to formally record the submitted half-yearly accounts and auditor's report. The application also requested approval for the payment of audit fees and incidental expenses from the company's liquidation funds. Revenue/State: No arguments were recorded for the Revenue or State in this matter.
Sections Cited
Section 462, Rule 298, Rule 306
AI-generated summary — verify with the full judgment below
[ 3405 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE EIGHTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUR ln the Matter of the Companies Act, 'l956 And ln the Matter of M/s.Allwyn Watches Limited (ln liqn.)
Between: The Official Liquidator, attached to the Hon'ble High Court of Telangana, and Andhra Pradesh, 1st floor, Corporate Bhawan, Bandl-aguda, Nagole, HyYdera'baa - 500068 ...APPLICANT Application Under Section 462 of the Companies Act, 1956 read with Rule 298 and Rule 306 of the Companies (Court) Rules, '1959) Praying that this Hon'ble Court may be pleased to: ii) take the half-yearly accounts of the subject company (in liquidation) for the period from 01.04.2022 to 30.09.2022, along with Auditor Report dated 12.06.2024 submitted on 18.06.2O24 by M/s.Padmanabha Rao and Co., Chartered Accountants on record and permission may be accorded to make the payment of audit fee of Rs.500l plus GST. cost of this application and any miscellaneous expenses may be permitted to be met out by the Official Liquidator from the available funds of the company (in liquidation) or Estate and Establishment Fund Account if no fund is available in the company's account i)
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