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TMI Blog1983 (10) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... ommitted offence under section 454(5) of the Act. C. R. E. Wood Co. Pvt. Ltd. was ordered to be wound up on April 6, 1977, on a petition moved by the Dena Bank Ltd., claiming to be the creditor. Under section 454(3) of the Companies Act, 1956, its statement of affairs should have been submitted within 21 days of making of the winding-up order, by one or more of the persons who were at that time the directors, manager, secretary or chief officer of the company. That period of 21 days could be extended to a maximum period of three months on the ground of special reasons. No statement of affairs, however, was filed within the period prescribed, nor any extension obtained. A notice dated November 10, 1980, was as well served by the official l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o accused were its directors. In this regard, I find that there is no evidence to show that they actually were. The record of the company has not been produced, as according to a report dated September 13, 1977, vide exhibit P-2 submitted by the official liquidator in the court, shows that the same had been completely spoiled when it had been removed to the open terrace by the landlord who had obtained an eviction order against the company and its managing director, B. N. Bharadwaj. The eviction order was said to be of February 7, 1975, and the possession obtained through bailiff of the court on February 11, 1975. The official liquidator, therefore, could not show from the company's record that the two accused were directors. The only other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Registrar of Companies; but denied the suggestion that in the record of the Registrar, he was shown as director up to 1977. According to him, a director was elected for a year, and if he was not re-elected, he ceased to be director after that year. Reference has also been made to section 283(1)( g ) of the Companies Act in order to show that if a director absents himself from three consecutive meetings of the board of directors or from all meetings of the board for a continuous period of three months whichever is longer without obtaining leave of absence from the board, his office as director becomes vacant. It has also been pleaded from his side that once he had submitted his resignation, it was for the company to have informed the Registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of affairs filed by Iqbal Singh later on May 11, 1984, on the basis of compilation by the chartered accountants, he stated that the same was entirely defective and of no use. The eviction order as observed above was executed on February 11, 1975. The winding-up order came more than two years later. The record had thus already been spoiled. In the circumstances, the director had reasonable excuse for not filing the statement of affairs. No conviction, therefore, can be made under section 454(5) of the Companies Act. B. N. Bharadwaj, who was the managing director of the company and was said to be looking after its affairs, it is stated, died in September, 1974. The result, therefore, is that the two accused are acquitted and the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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