When directors can be treated as 'officer who is in default' under section 5

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....Department in the light of the abovesaid judgment of the Hon'ble Rajasthan High Court. The Department is of the view that this judgment has correctly interpreted the provisions of section 5 as amended in 1988. It may, therefore, please be ensured that where the penal provisions provide for punishment of 'officers in default', prosecution be filed against the managing director(s), whole-time directors) and manager, apart from the secretary, if any, and the company and only in those cases where there is no such managerial personnel (i.e., managing director/whole-time director/manager), prosecution be filed against all ordinary directors, apart from the secretary, if any, and the company. ANNEX Tibrewal, J. - In this petition under secti....

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....ult, is liable to the punishment. Section 5 of the Companies Act defines 'officer who is in default' and ft provides as under : '5. Meaning of "officer who is in default" - For the purpose of any provision in this Act which enacts that a officer of the company who is in default shall be liable to any punishment or penalty, whether by way of imprisonment, fine or otherwise, the expression "officer who is in default" means all the following officers of the company, namely :      (a) the managing director or managing directors;      (b) the whole-time director or whole-time directors;      (c) the manager;      (d) the secretary;   &nbsp....