Continuing offence in non-filing of statement of affairs defeats criminal limitation and keeps the complaint maintainable

Non-filing of the statement of affairs by ex-directors under the Companies Act, 1956 was treated as a continuing default because the duty to file persisted until compliance, and the statutory punishment provision contemplated a daily fine for each day of default. On that basis, limitation under section 468 of the Code of Criminal Procedure, 1973 did not bar the complaint, and section 472 applied to the continuing offence. The preliminary objection to maintainability was therefore rejected, with the later Supreme Court position preferred over the earlier contrary view.

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Issues: Whether the complaint for non-filing of the statement of affairs under section 454 of the Companies Act, 1956 was barred by limitation under section 468 of the Code of Criminal Procedure, 1973, or whether the default constituted a continuing offence attracting section 472 of that Code.

Analysis: The statutory scheme required the ex-directors to file the statement of affairs within the period prescribed by section 454(1) to (3) of the Companies Act, 1956. Section 454(5) prescribed punishment for default and provided for a daily fine for every day during which the default continued, while section 454(5A) enabled cognizance on complaint and trial according to the summons-case procedure. In light of that language, the default in filing the statement of affairs was treated as continuing until the statement was filed. The bar of limitation under section 468 of the Code of Criminal Procedure, 1973 therefore did not apply, and section 472 of that Code governed the offence. The contrary view based on the earlier authority was not accepted in view of the subsequent Supreme Court position.

Conclusion: The complaint was not time-barred; the default was a continuing offence, and the preliminary objection to maintainability was rejected.

Ratio Decidendi: Non-filing of the statement of affairs within the period prescribed by section 454 of the Companies Act, 1956 is a continuing offence, so limitation under section 468 of the Code of Criminal Procedure, 1973 does not bar the complaint and section 472 of that Code applies.

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