Section 53

Liability in case of company in liquidation Liability in case of company in liquidation.—

1. (1) Every person—
   • (a) who is or has been a liquidator of any company which is being wound up, or
   • (b) who has been appointed to receive assets of any company which is being wound up, (hereinafter referred to as "the liquidator") shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the Commissioner.
2. (2) The Commissioner shall, after making such inquiry or calling for such information as he 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 Commissioner, would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.
3. (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 Commissioner under sub-section
4. (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 the liquidator from parting with such assets or properties for the purpose of the payment of the tax payable by the 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 up of the company as are in the opinion of the Commissioner reasonable.
5. (4) If the liquidator fails to give the notice in accordance with sub-section
6. (1) or fails to set aside the amount as required by sub-section
7. (3) or parts with any 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 otherwise liable to pay under this Act.