Court dismisses complaint against ex-Directors for late filing due to illness and sealed premises.

The court dismissed the complaint against ex-Directors for failing to file a statement of affairs within the prescribed time after a winding up order. Despite allegations of non-compliance with statutory provisions, the court found the ex-Directors had a reasonable excuse for the delay due to serious illness and sealed premises. The judgment emphasized the need to demonstrate the absence of a reasonable excuse for non-compliance with statutory requirements under section 454 of the Companies Act.

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Issues: Whether the ex-directors were guilty of default in not filing the statement of affairs within the statutory period under section 454 of the Companies Act, 1956, and whether the delay was without reasonable excuse.

Analysis: The obligation to submit the statement of affairs under section 454 arises after a winding-up order and must ordinarily be complied with within 21 days, extendable up to three months for special reasons. Failure to comply attracts punishment only where the default is without reasonable excuse. The material on record showed that the factory premises where the relevant records were kept had been sealed soon after the winding-up order, the respondents had repeatedly sought permission to inspect the records, and the statement of affairs was filed after such inspection was permitted. On these facts, the delay was attributable to circumstances beyond the respondents' control and not to wilful disregard of the statutory duty. The offence was treated as a continuing one, but the evidence did not establish absence of reasonable cause beyond doubt.

Conclusion: The respondents were held not liable for punishment under section 454(5) of the Companies Act, 1956, as the delay was supported by reasonable excuse.

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