Continuing offence in filing statement of affairs prevents limitation from barring prosecution while default persists.

Default in filing the statement of affairs in winding up proceedings is a continuing offence where the omission persists until compliance is made. The statutory scheme, including the daily fine for continued default, indicates that the obligation is not exhausted by the expiry of the initial 21-day period or any extended period up to three months. As a result, section 472 CrPC applies and limitation does not bar a complaint while the default continues. The prosecution was therefore treated as maintainable despite the time elapsed.

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Issues: Whether the prosecution for default in filing the statement of affairs under section 454(5) of the Companies Act, 1956 was barred by limitation, or whether the default constituted a continuing offence.

Analysis: The filing of the statement of affairs is a mandatory step in the winding up of a company and is required within the prescribed period. The statutory scheme, including the penal consequence extending to a daily fine for the period during which the default continues, shows that the obligation is not exhausted merely by expiry of the initial period. The omission to file the statement of affairs continues until compliance is made, and therefore the offence does not become complete on the expiry of 21 days, or on the expiry of any extended period up to three months. In such a situation, section 472 of the Code of Criminal Procedure, 1973 applies and a fresh period of limitation does not bar the complaint so long as the default persists.

Conclusion: The default was a continuing offence and the complaint was not barred by limitation.

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