Reasonable excuse for non-filing of statement of affairs accepted where company had ceased to exist in substance.

An ex-director was found not liable for non-filing of the statement of affairs where the company had never commenced business, held no general meeting, and filed no statutory return. The court noted that the company had ceased to exist in substance and remained only on paper, so no meaningful books, records, or accounts were available from which the required particulars could be prepared after the long lapse of time following winding-up. In these circumstances, the inability to furnish statutory particulars constituted a reasonable excuse, and the application was allowed in favour of the petitioner.

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Issues: Whether the ex-director was liable to submit the statement of affairs, books and records of the company, and whether the facts disclosed a reasonable excuse for not filing the statement of affairs.

Analysis: The company had not commenced business, had never functioned in any real sense, no general body meeting was held, and no statutory return was filed. The records showed that the company had effectively ceased to exist except on paper, so there were no meaningful accounts or records from which a statement of affairs containing the particulars required by law could be prepared after a long lapse of time following the winding-up order.

Conclusion: The ex-director could not be fastened with liability for non-filing in the circumstances, and the application was allowed in favour of the petitioner.

Ratio Decidendi: Where a company has never commenced business and has ceased to exist in substance, inability to furnish the statutory particulars may constitute a reasonable excuse for non-filing of the statement of affairs.

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