TaxTMI 
TaxTMI 
2007 (9) TMI 718
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.... violation of sub-section (1) and sub-section (2) of Section 205-A of the Companies Act 1956, complaint in question was filed beyond a period of 6 months from the date when the offence was completed i.e. reckoned with effect from 6 months after dividend was declared and remained unpaid and even beyond 6 months when knowledge of the offence was with the Registrar of Companies. 3. Whereas petitioners urge that by virtue of sub-section (8) of Section 205-A of the Companies Act the offence being punishable with only fine, limitation would be 6 months by virtue of Section 468(2)(a) of the Code of Criminal Procedure 1973, prosecution states that though limitation would be 6 months but since it is a continuing cause of action, complaint is not ....
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....In the case of a continuing offence there is thus the ingredient of continuance of the offence which is absent in the case of an offence which takes place when act or omission is committed once and for all. 7. Their Lordships of the Supreme Court were considering regulation 3 of the Indian Metalliferous Mines Regulations and Section 66 of the Mines Act 1952. In para 9 of the report it was opined as under:- "9. Reg.3 read with Section 66 of the Mines Act makes failure to furnish annual returns for the preceding year by the 21st of January of the succeeding year an offence. The language of Reg.3 clearly indicates that an owner, manager etc. of a mine would be liable to the penalty if he were to commit an infringement of the Regula....
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....h may, extend to five hundred rupees for every day during which the default continues." 9. Suffice would it be to note that offence under Section 162 of the Companies Act is a failure to submit a return. Further, the penalty is up to Rs.500/- for every day during which the default continues. 10. Contrasted with the language of sub-section (8) of Section 205 of the Companies Act, it be noted that the 2 provisions are pari materia. Only difference being that word used in sub-section (1) of Section 162 is 'default' and the word used in sub-section (8) of Section 205-A of the Companies Act is 'failure'. 11. Interpreting Section 162 of the Companies Act, in para 14 of the decision of the Division Bench of the Calcutta Hi....
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....ade with the object of enforcing strict compliance with the requirement of Section 159 under the threat of enhanced penalty and getting relief from such penalty on enhancing scale by early submission of returns even after the default. That does not render the initial default a continuous one. It cannot be said that the offence is repeated or committed from day to day after the initial default. It is only where the offence is committed from day to day that it can be called a continuing offence. There being no express provision in Section 234, 598 etc. of the Companies Act it will not be proper to hold that the offence under Section 162 is a continuing offence. When the statute itself provides for continuance of offence irrespective of initia....