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2016 (7) TMI 767 - HC - Companies LawDefault of Director of the company in liquidation - non filing of statement of accounts of the company in liquidation within 21 days of the winding up order - Held that:- The respondents, the ex-directors of the company in liquidation are guilty of breach of their obligation under Section 454 of the Act of 1956 to file a statement of accounts of the company in liquidation within 21 days of the winding up order dated 17- 10-2003. The default is intentional or in any event for reason of their recklessness negligence and disregard of the statutory provisions of law. The defence set up by the respondents for not filing a full and complete statement of affairs for 12 years is wholly untenable. The respondents did not have a “reasonable excuse” to do so. No plausible reason therefor obtains in the facts of the case with the respondents. And when the compliance was sought to be purportedly made belatedly in January, 2016 and on 5-2-2016 it was defective and incomplete, and hence no compliance in the eye of law. The respondents having been found guilty of contravention of Section 454 of the Act of 1956, the question of sentence remains. The respondents have been in default/ non compliant with the provisions of section 454 of the Act of 1956 for a period over 4380 days from the date of winding up order dated 17-10-2003. Section 454(5) of the Act of 1956 provides for a fine of ₹ 1000/- per day till the currency of the default. By a simple arithmetical calculation the amount of fine comes to ₹ 43,80,000/-. But that is the maximum fine. In the facts of the case, it is of the considered view that the ends of justice would be served in holding the respondents directors Pawan Kumar Lath and Bimal Kumar Lath of the company in liquidation being liable to a fine of ₹ 2 lacs, jointly/ severally as punishment for the reckless contravention of Section 454(3) of the Act of 1956. The said amount ₹ 2 lacs fine be deposited in the Common Pool Fund with the Official Liquidator within a period of six months from today. However, in the event of non payment of the amount of fine as aforesaid, the respondents directors of the company in liquidation shall be liable, in the alternative, to serve simple imprisonment for a period of six months.
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