Continuing offence under the Companies Act defeats limitation and supports prosecution for non-filing of annual return.

Prosecution for non-filing of an annual return under the Companies Act was treated as a continuing offence because the statutory scheme imposes a daily fine for each day of default. The obligation applies to the company and the officers in default, and the continuing nature of the breach attracts Section 472 of the Code of Criminal Procedure, so a fresh limitation period runs during the continuance of default and Sections 468 to 471 do not bar the proceeding. The material also disclosed no ground to interfere with the summoning order under inherent jurisdiction.

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Issues: Whether the prosecution for non-filing of annual return under the Companies Act was barred by limitation, and whether the default constituted a continuing offence so as to justify refusal to exercise inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: The annual return obligations under Sections 159, 160 and 161 of the Companies Act are enforceable against the company and the officers in default as identified by Section 5 of the Companies Act. Section 162 of the Companies Act prescribes a daily fine for every day during which the default continues, which indicates that the breach is not a single completed act but a continuing one. Once the offence is continuing, Section 472 of the Code of Criminal Procedure, 1973 applies and a fresh period of limitation begins to run during the continuance of the default, making Sections 468 to 471 of the Code inapplicable. The record also did not disclose any basis for interfering with the summoning order in exercise of inherent jurisdiction.

Conclusion: The default was held to be a continuing offence, the plea of limitation was rejected, and the request to quash the proceedings was declined.

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