Facts of the Case

This is a routine company-liquidation accounts matter under the Companies Act, 1956, with no GST issue on merits — GST is mentioned only as a small line-item (audit fee plus applicable GST) in the relief sought. The Official Liquidator, attached to the High Court, filed Company Application No.69 of 2026 under Sections 462 and 551 of the Companies Act, 1956, read with Rules 298 and 306 of the Companies (Court) Rules, 1959, seeking to place on record the half-yearly accounts of a company in liquidation for the period 01.10.2023 to 31.03.2024, along with an Independent Auditor's Report dated 04.02.2026, and permission to pay the auditor's fee of Rs.500/- plus GST. The Liquidator also sought exemption from filing separate final/annual accounts for financial year 2023-24, since the half-yearly accounts for the two half-year periods together already covered that financial year. The matter was decided on 10.04.2026.

Issues Involved

  1. Whether the half-yearly accounts and Auditor's Report should be taken on record.
  2. Whether the company (in liquidation) should be exempted from separately filing annual accounts for FY 2023-24 given that the two half-yearly statements together covered the year.
  3. Whether payment of the auditor's fee (plus GST) and costs of the application could be permitted from the company's funds.

Petitioner's Arguments

  • The Official Liquidator submitted that the half-yearly accounts for 01.10.2023 to 31.03.2024, duly audited by M/s KBS & Associates pursuant to the Court's earlier order dated 04.07.2024 in C.A.No.43 of 2024, should be taken on record, and that since the two half-yearly statements together amounted to the full year's accounts, a separate annual account filing under Section 551 was unnecessary.

Respondent's Arguments

  • There was no contesting respondent; the application proceeded on the Official Liquidator's own submissions, and the order records no opposition.

Court Order / Findings

  • On perusing the Auditor's Report, the Court found no adverse comment or observation on the statement of accounts.
  • The Court took the half-yearly accounts and Auditor's Report on record and exempted the company from separately filing accounts for financial year 2023-24 under Section 551 of the Companies Act, 1956.
  • The Company Application was allowed as prayed for, with no order as to costs.

Important Clarification

This is an administrative/regulatory order in a company winding-up proceeding — it approves routine liquidation accounts and has no bearing on any GST dispute; GST appears only as part of the auditor's fee being reimbursed from the company's funds.

Sections Involved

  • Companies Act, 1956 — Section 462 (accounts of liquidator) and Section 551 (annual accounts of company in liquidation)
  • Companies (Court) Rules, 1959 — Rules 298 and 306

Decision – In Favour of

Allowed as prayed for by the Applicant, the Official Liquidator — the half-yearly accounts were taken on record and the annual accounts filing requirement was exempted; there is no opposing party in this administrative liquidation matter.

Case Details

High Court of Andhra Pradesh at Amaravati (Special Original Jurisdiction) | Company Application No.69 of 2026 | Coram: Hon'ble Smt. Justice V. Sujatha | Date: 10.04.2026.

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