(1) Every person who -
(a) is the liquidator of a company which is being wound up, whether under orders of a Court or otherwise; or
(b) has been appointed the receiver of any assets of a company hereinafter referred to as the liquidator,
shall within thirty days after he has become such liquidator, inform the assessing authority of his appointment as such.
(2) The assessing authority shall after making such inquiry or calling for such information as it may deem fit, notify the liquidator within three months from the date on which he receives information of the appointment of the liquidator the amount which in the opinion of the assessing authority would be sufficient to provide for any tax which is then or likely thereafter to become, payable by the company.
(3) The liquidator shall not part with any of the assets of the company or the properties in his hands until he has been notified by the assessing 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.
Provided that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a Court or for the purpose of the payment of tax payable by the company under this Act or for making any payment over debts due to Government on the date of liquidation or for meeting such costs or expenses of the winding up of the company as are in the opinion of the assessing authority reasonable.
(4) If the liquidator fails to give the information in accordance with sub-section (1) 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 under sub-section (2), the amount of any tax payable by the company is notified personal liability of the liquidator under this sub- section shall be to the extent of such amount.
(5) Where there are more than one liquidator, the liquidations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.
(6) The provision of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.
Explanation- Company has the meanings assigned to it by clause (i) of subsection (1) of section 3 of the Companies Act, 1956 (Act No. 1 of 1956).