Continuing offence principle keeps Companies Act non-filing defaults alive, preventing limitation from barring prosecution.

Non-filing of annual returns and balance sheet documents under the Companies Act was treated as a continuing offence because the statutory duty remained unfulfilled until compliance. The Court applied the settled principle that a continuing wrong persists from day to day, so a fresh period of limitation arises while the default continues. On that basis, defaults under sections 159 and 220 were held not to be barred by limitation, and the Magistrate's cognizance was sustained.

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Issues: Whether the offences alleged for failure to file annual returns and balance sheet documents under the Companies Act were continuing offences so as to avoid the bar of limitation.

Analysis: The statutory scheme required filing of annual returns under section 159 and filing of balance sheet and profit and loss account under section 220 within the prescribed time, with penal consequences under section 162 and section 220(3) for default. The question turned on whether the failure was an act complete once and for all or a default that persisted until compliance. Applying the settled concept of a continuing offence, the Court held that where the legal requirement remains unfulfilled, the default continues from day to day and a fresh period of limitation begins to run so long as the omission persists. Relying on the Supreme Court's approach to continuing offences and the social object of the Companies Act, the Court preferred the view that non-filing under sections 159 and 220 is a continuing wrong and rejected the contrary line of authority.

Conclusion: The offences were held to be continuing offences, the complaints were not barred by limitation, and cognizance by the Magistrate was upheld. The petitioners were not entitled to quashing on the limitation ground.

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