Reasonable excuse for non-filing of statement of affairs protects ex-directors who lacked control and records.

Ex-directors were not liable for punishment for failure to file the statement of affairs under section 454 of the Companies Act, 1956, because the obligation applies only to persons in charge of, or concerned with, the company's affairs at the relevant time and able to provide the prescribed particulars. As the company's assets had already been taken over and sold before the winding-up order, and the accused no longer possessed the books, accounts, or other information needed to prepare the statement, their default was supported by a reasonable excuse. The court therefore found no basis to punish them under section 454.

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Issues: Whether the ex-directors were liable to be punished for not filing the statement of affairs under section 454 of the Companies Act, 1956, or whether they had a reasonable excuse for the default.

Analysis: The obligation under section 454 applies to persons who are at the relevant date in charge of, or concerned with, the affairs of the company and who can ify the particulars required in the prescribed form. The company's assets had already been taken over and sold before the winding up order, and the accused were not in possession of the relevant books, accounts, or particulars needed to prepare the statement of affairs. In these circumstances, the Court held that the official liquidator had proceeded against ex-directors who were no longer in control, and that the inability to file the statement was supported by a reasonable excuse.

Conclusion: The accused were not liable for punishment under section 454, and the petition failed.

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