11[M.—Private companies]
Liability of directors of private company in
liquidation.
179. 12[(1)] Notwithstanding anything contained in the Companies Act, 1956 (1
of 1956), 13[where any tax due from a private company in respect of any income of
any previous year or from any other company in respect of any income of any
previous year during which such other company was a private company] cannot be
recovered, then, every person who was a director of the private company at any
time during the relevant previous year 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) Where a private company is converted into a public company and the
tax assessed in respect of any income of any previous year during which such
company was a private company cannot be recovered, then, nothing contained in
sub-section (1) shall apply to any person who was a director of such private
company in relation to any tax due in respect of any income of such private
company assessable for any assessment year commencing before the 1st day of
April, 1962.]
