https://www.taxtmi.com/caselaws?id=100304 Penal liability for failure to file a statement of affairs under section 454(5) of the Companies Act, 1956 arises only where the prosecution proves both default and absence of reasonable excuse. Once notice, lapse of time and other primary facts are shown, the burden shifts to the accused to establish a reasonable excuse. The text also notes that a director who had ceased participating in board affairs and lacked intimate knowledge of the company's records could be treated as having vacated office and, in any event, could rely on reasonable excuse. Where accused persons admitted the default, conviction could follow and sentence would depend on the duration of default, conduct, and the object of prompt disclosure to the liquidator. en-us Mon, 02 Apr 1984 00:00:00 +0530 Tue, 31 Jan 2012 18:19:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100304 Penal liability for failure to file a statement of affairs under section 454(5) of the Companies Act, 1956 arises only where the prosecution proves both default and absence of reasonable excuse. Once notice, lapse of time and other primary facts are shown, the burden shifts to the accused to establish a reasonable excuse. The text also notes that a director who had ceased participating in board affairs and lacked intimate knowledge of the company's records could be treated as having vacated office and, in any event, could rely on reasonable excuse. Where accused persons admitted the default, conviction could follow and sentence would depend on the duration of default, conduct, and the object of prompt disclosure to the liquidator. Case-Laws Companies Law Mon, 02 Apr 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100304