THE STATE OF BOMBAY vs BANDHAN RAM BHANDANI AND OTHERS.

The Supreme Court held that under Sections 32(5) and 133(3) of the Indian Companies Act, 1913, a director cannot use the failure to call a general meeting as a defense against charges of non-compliance with statutory obligations. The court established that liability arises from the failure to perform duties imposed by the Act, regardless of whether a meeting was held. The respondents were found guilty of knowingly authorizing the failure to file necessary documents, affirming that the default occurs after twenty-one days from the due date for the meeting.