https://www.taxtmi.com/caselaws?id=97557 Penal liability of company directors for statutory defaults under the Companies Act is not automatic on proof of the company's failure alone. The prosecution must prove that the particular officer was knowingly and wilfully a party to the default in holding general meetings and in laying the balance-sheet and profit and loss account before the company. Where the only witness had no direct knowledge of the company's affairs and could not speak to any fact showing conscious participation, the essential ingredient was not established. The conviction was therefore unsustainable, and the accused were entitled to acquittal. en-us Mon, 23 Dec 1957 00:00:00 +0530 Tue, 17 Jan 2012 12:15:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97557 Penal liability of company directors for statutory defaults under the Companies Act is not automatic on proof of the company's failure alone. The prosecution must prove that the particular officer was knowingly and wilfully a party to the default in holding general meetings and in laying the balance-sheet and profit and loss account before the company. Where the only witness had no direct knowledge of the company's affairs and could not speak to any fact showing conscious participation, the essential ingredient was not established. The conviction was therefore unsustainable, and the accused were entitled to acquittal. Case-Laws Companies Law Mon, 23 Dec 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97557