Liquidator duty to notify and reserve funds secures tax as a first charge after workmen's dues.

Liquidators must notify the Assessing Officer of their appointment and, after receiving the Assessing Officer's intimation of an amount sufficient to meet tax arrears or anticipated liabilities, must not part with assets and must set aside the intimated amount. That amount is the first charge on assets after workmen's dues and specified secured creditors. Failure to notify or to set aside the amount makes the liquidator personally liable, with joint and several liability where multiple liquidators act, and the section prevails over inconsistent law.

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