Proof of default in filing statement of affairs failed where responsibility and absence of reasonable excuse were not established.

Criminal liability for default in filing the statement of affairs under section 454 of the Companies Act, 1956 required proof beyond reasonable doubt that the persons proceeded against were directors or responsible officers on the relevant date, that the statement was not filed in time, and that the default occurred without reasonable excuse. The documentary material was found insufficient to establish the respondents' on the winding-up date, and the evidence also indicated belated filing, responses to objections, and attendance before the official liquidator, supporting explanation and reasonable cause. The prosecution therefore failed to prove the statutory offence, and conviction was not warranted.

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Issues: Whether the respondents were liable to be convicted for default in filing the statement of affairs of the wound-up company under section 454 of the Companies Act, 1956.

Analysis: Liability under section 454 arises only if the prosecution establishes that the persons proceeded against were the directors or other responsible officers on the relevant date, that the statement of affairs was not submitted within time, and that the default occurred without reasonable excuse. The proceedings being criminal in nature, the charge had to be proved beyond reasonable doubt. The material relied upon by the official liquidator did not satisfactorily establish who were the directors on the date of winding up, and the documentary foundation relied upon was found insufficient to connect all respondents with the statutory default. On the other hand, the evidence showed that some respondents had filed the statement of affairs belatedly, had responded to objections, and had attended before the official liquidator, which supported the existence of explanation and reasonable cause in the facts of the case.

Conclusion: The prosecution failed to prove the offence under section 454 of the Companies Act, 1956, and the respondents were not liable to be convicted.

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