Directors' duty to file statement of affairs on winding up must be met within the statutory period, absent valid extension.

Directors' obligation to file the company's statement of affairs arises on winding up and the appointment of the official liquidator, and the statutory period is 21 days, extendable only for recorded reasons within the permitted limit. The note explains that service of notices and the directors' knowledge of the liquidation proceedings supported liability, while no valid extension was sought or granted. It also rejects the argument that the official liquidator had to issue a separate notice, because the statutory duty to file rests on the directors themselves. Monetary punishment is discussed as the consequence for non-compliance.

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Issues: Whether the directors were liable for failure to file the statement of affairs of the company within the statutory period and whether punishment was warranted under the governing company law provisions.

Analysis: The liability to file the statement of affairs arose upon winding up and the appointment of the official liquidator, and the statutory period was 21 days, extendable only for reasons recorded in writing and within the permitted maximum. The record showed service of notices on the directors and their knowledge of the liquidation proceedings, while no valid extension of time was sought or granted. The explanation that the official liquidator was obliged to serve a separate notice was rejected, as the statutory scheme placed the duty to file on the directors themselves.

Conclusion: The directors were held guilty for not filing the statement of affairs within the prescribed time, and monetary punishment was imposed on each of them.

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