TMI Blog1995 (2) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... prepare, verify and submit the statement of affairs, in duplicate, in the prescribed Form No. 57 together with an affidavit in Form No. 58 and further that they be tried and sentenced for violating the provisions of section 454 of the Act. This petition arises out of the following facts : Bhatinda Heavy Allied Chemicals Limited (in liquidation) (hereinafter referred to as "the company in liquidation") was incorporated on August 24, 1976, at Bombay. The registered office of the company in liquidation was shifted to the State of Punjab on October 1, 1982. On April 3, 1987, Company Petition No. 49 of 1987 was filed under section 433 read with section 434 of the Act on the ground that the company in liquidation was unable to pay its due deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the passing of the winding up order, charges against him were not pressed. Placing reliance upon the provisions of section 454 of the Act, counsel for the parties argued that where the court has appointed an official liquidator, then it is the duty of the persons who are at the relevant date the directors or officers of the company to submit and verify the statement. This person can either be in actual control or working of the company or who may have been an officer of the company and if such a person fails to comply with any of the requirements of this section without any reasonable excuse, then he becomes liable for punishment for a term extending to two years or fine or both. There is no dispute with this proposition. In his state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led. Under section 454 of the Act, statement of affairs of the company has to be filed in the prescribed form verified by an affidavit and containing the following particulars : ( a )the assets of the company, stating separately the cash balance in hand and at the bank, if any, and the negotiable securities, if any, held by the company ; ( b )its debts and liabilities ; ( c )the names, residences and occupations of its creditors, stating separately the amount of secured and unsecured debts ; and in the case of secured debts, particulars of the securities given, whether by the company or an officer thereof, their value and the dates on which they were given ; ( d )the debts due to the company and the names, residences and occupations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubt that under sub-section (2) of section 454 of the Act, a person who has been an officer of the company could also be asked to submit and verify the statement but the official liquidator instead of proceeding against the person who was in actual control of the assets and liabilities of the company chose to proceed against the ex-directors of the company in liquidation. The assets of the company stood sold prior to the passing of the winding up order. Under the circumstances of the case, it would be a reasonable excuse for the ex-directors not to file the statement of affairs. It cannot be held that their act was mala fide or contemptuous in order to avoid the rigour of section 454. This court, in Pawanta Sahib Cement Works ( P. ) Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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