of new Chapter V 'CHAPTER V LIABILITY XN SPECIAL CASES
16. In this Chapter,- Defim'
(a) "'appropriate authority", in relation to a company, means the authority competent to assess tax on the company;
(b) "company" and "private company" have the meanings respectively assigned to them by clauses (i) and (in) of subsection (2) of section 3 of the Companies Act. 1956,
17. (J) Every person- Co) who is the liquidator of any company which is being Com- • wound up, whether under 1he orders of a court or otherwise; or Pa&yin iiqwi-
(b) who has been appointed the receiver of any assets of a elation.
company, (hereinafter referred k> «-..-. the liquidator) shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the appropriate authority.
(2) The appropriate ;:;;th<jr:iy shall, after making such inquiry or calling for such information as it may deem fit, notify to the liquidator within three months from the date on which he receives notice of the appointment of the liquidator the amount which, in the opinion of the appropriate authority would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.
(3) Tiie liquidator shall not part with any of the assets of the company or the properties in Bis hands until he has been notified by the appropriate authority under sub-section (2) and on being so notified,, shall set aside an amount equal to the amount notified and, until he so sets aside such amount, shall not part with any of the, assets of the company or the properties in his hands:
Provided that nothing contained in this sub-section shall debar ihe liquidator from parting with such assets or properties in complianep with any order of & court or for the purpose of the payment of the tax payable by thy company under this Act or for making any payment to secured creditors whose debts are entitled under law to priority of payment over debts due to Government on the date of liquidation or for meeting such costs and expenses of the winding tip of the company as are in the opinion of the appropriate authority reasonable.
i ©j 195C- 884 THE GAZETTE OP INDIA EXTRAORDINARY [PABT n~-
(4) If the liquidator fails to give the notice in accordance with tub-section (I) or fails to set aside the amount as required by, or parts with any of the assets of the company or the properties in his hands in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax which the company would be liable to pay:
Provided that if the amount oi any lax payable by the company is notified under sub-section (2), the personal liability of the liquidator under this sub-section shall be to the extent of such amount.
(5) Where there are more liquidators than one, the obligations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.
(6) The provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the tinu1 being in force.
18. Notwithstanding anything contained in the Companies Act.
1956, when any private company is wound up after the commence- ' •>£ l*5d ment of this Act, and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then, every person who was a director of the private company at any time during the period for which the tax is due shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.'.
14. (2) The principal Act, as in force on the 5th day of August, 1971, is hereby extended to, and shall be in force in, the Kohima and Mokokchung districts in the State of Nagaland.
(2) The amendments made to the principal Act by this Act shall come into force in the Kohima and Mokokchung districts in the State of Nagaland on the date on which this sub-section comes into force.
15. (1) Notwithstanding anything contained in any judgment, decree or order of any court or other authority to the contrary, any assessment, re-assessment, levy or collection of any tax made or purporting to have been made, any action or thing taken or done in relation to such assessment, rc-assessment, levy or collection under the provisions of the principal Act before the commencement of this section shall be deemed to be as valid and effective as if such assessment, re-assessment, levy or collection or action or thing had been made, taken or done under the principal Act as amended by clause (d) of section 11 and clause (a) of section 12 of * this Act, and accordingly—
(a) all acts, proceedings or things done; or action taken by the State Government or by any other officer of the State Government liability nt directors of private company in liquidation.
Extension of the prini-ipal >Vct to Kuhima ^nd Mokokchung districts in. the State of landL Validation of ^sesamentj, .etf, Hue. l j THE UAZKTE OF INDIA KXTRAOJiDlNAiiY 885 or by any other authority in connection with the assessment, re- •ssessment, levy or collection of such tax shall, for all purposes, b« deemed to be and to have always been done or taken In accordance with law;
(b) no suit or other proceedings shall be maintained or continued in any court or before any authority for the refund of any such tax; and
(c) no court shall enforce any decree or order directing the refund of any such tax.
(2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall be construed as preventing any personfa) from questioning in accordance with the provisions of the principal Act, as amended by this Act, the assessment, re-assessment, levy or collection of such tax for any period, or
(b) from claiming refund of any tax paid by him in excess of the amount due from him under the principal Act as amended by this Act.
K. K. SUNDARAM, j t Secy, to the Govt. of India.
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