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CHAPTER XVI - LIABILITY TO PAY IN CERTAIN CASES
Section 85 - Liability in case of ...
Section 86 - Liability of agent an...
Section 87 - Liability in case of ...
Section 88 - Liability in case of ...
Section 89 - Liability of director...
Section 90 - Liability of partners... Section 91 - Liability of guardian... Section 92 - Liability of Court of... Section 93 - Special provisions re... Section 94 - Liability in other ca...Section 89 - Liability of directors of private company
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89. Liability of directors of private company.[1]
(1) Notwithstanding anything contained in the Companies Act, 2013, where any tax, interest or penalty due from a private company in respect of any supply of goods or services or both for any period cannot be recovered, then, every person who was a director of the private company during such period shall, jointly and severally, be liable for the payment of such tax, interest or penalty 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. |
(2) Where a private company is converted into a public company and the tax, interest or penalty in respect of any supply of goods or services or both for any period during which such company was a private company cannot be recovered before such conversion, 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, interest or penalty in respect of such supply of goods or services or both of such private company: Provided that nothing contained in this sub-section shall apply to any personal penalty imposed on such director. |
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