Continuing offence doctrine applies to company filing defaults where the statutory breach persists until required returns are filed.

Defaults in filing annual returns, balance-sheets and profit and loss accounts under sections 159 and 220 of the Companies Act, 1956 were treated as continuing offences because the statutory duty remained unperformed day to day and section 162 linked punishment to the duration of the default. The court held that the contravention did not on the due date, but continued so long as the obligation persisted, and rejected the view that the daily fine was only a measure of punishment. As a result, section 472 of the Code of Criminal Procedure, 1973 applied and limitation under section 468 did not bar cognizance.

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Issues: Whether the offences for non-filing of annual returns, balance-sheet and profit and loss account under the Companies Act, 1956 are continuing offences so that limitation for cognizance is governed by section 472 of the Code of Criminal Procedure, 1973 and not barred by section 468 of the Code.

Analysis: The filing obligations under sections 159 and 220 of the Companies Act, 1956 were held to serve the public purpose of making a company's financial affairs available for inspection by shareholders, creditors and others. Section 162 prescribed punishment in the form of fine calculated with reference to each day during which the default continued, which indicated that the contravention was not completed once and for all on the expiry of the due date, but remained alive so long as the statutory duty remained unperformed. The reasoning was supported by the nature and object of the provisions, and by the principle that a continuing offence keeps the default subsisting from day to day. The contrary view that day-wise fine merely measured punishment was rejected.

Conclusion: The defaults under sections 159 and 220 read with section 162 of the Companies Act, 1956 are continuing offences, so section 472 of the Code of Criminal Procedure, 1973 applies and the complaints are not barred by limitation under section 468 of the Code.

Ratio Decidendi: Where a statutory duty is required to be performed within a prescribed time and the penal provision ties punishment to the continuance of the default, the omission constitutes a continuing offence for as long as the duty remains unfulfilled.

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