https://www.taxtmi.com/caselaws?id=97005 Criminal liability for false statements in company balance-sheets under section 282 of the Indian Companies Act depends on proof that the statements were materially false and made wilfully with knowledge of falsity. The discussion notes that alleged non-disclosure of unsecured loans, bad and doubtful debts, accrued interest, and loans to directors does not amount to material falsification where the underlying facts are not reliably shown, the items are disclosed by notes or policy, or the transactions are closed within the year. It also emphasises that mens rea is essential: reliance on company officials or an error of judgment does not by itself establish dishonesty, mala fides, or wilful negligence. en-us Fri, 01 Oct 1948 00:00:00 +0530 Fri, 13 Jan 2012 16:18:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97005 Criminal liability for false statements in company balance-sheets under section 282 of the Indian Companies Act depends on proof that the statements were materially false and made wilfully with knowledge of falsity. The discussion notes that alleged non-disclosure of unsecured loans, bad and doubtful debts, accrued interest, and loans to directors does not amount to material falsification where the underlying facts are not reliably shown, the items are disclosed by notes or policy, or the transactions are closed within the year. It also emphasises that mens rea is essential: reliance on company officials or an error of judgment does not by itself establish dishonesty, mala fides, or wilful negligence. Case-Laws Companies Law Fri, 01 Oct 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97005