It aimed to repeal the presidency towns insolvency act, 1909 and sick industrial companies special provisions repeal act, 2003, among others. Repeal of sick industrial companies special provisions act, 1985. This act may be called the sick industrial companies special provisions act, 1985. For the removal of doubts, it is hereby declared that an industrial company existing immediately before the commencement of the sick industrial companies special provisions amendment act, 1993, registered for not less than five years and having at the end of any financial year accumulated losses equal to or exceeding its.
Section 252 of the insolvency and bankruptcy code, 2016 ibc, which came in to force w. An act to make, in the public interest, special provision with a view to securing the timely detection of sick and potentially sick companies owning industrial undertakings, the speedy determination by a board of experts of the preventive, ameliorative, remedial and other measures which need to be taken with respect to such companies and the. Section 18 in the sick industrial companies special. The objectives of this act sica as incorporated in its preamble, emphasis the following points. The main issue before sc was with regard to section 22 of. The board for industrial and financial reconstruction bifr was formed under the sica to determine the sickness of such industrial companies and to prescribe measures either for the revival. Chapter xix of 20 act revival and rehabilitation of sick companies omitted by ibc w. The sick industrial companies special provisions act, 1985 sica was enacted to make special provisions for the timely detection of sick and potentially sick companies owning industrial undertakings.
Institutes act rdbfi 1985 sick industrial companies special provisions act bifr 2001 corporate debt restructuring cell cdr 2002 sarfaesi act arcs 2014 announced asset classification forbearance on restructuring ended from march 2015 jan 2014 revitalising distressed assets in the economy sma and jlf dec 2014 flexible structuring of. The repeal act provides for repeal of the sick industrial companies special provisions act, 1985 sica and related matters. In case, the bifr findsthat it is not possible for the revival and. Before the appellate authority or the board under sick industrial companies special provisions act, 1985 1 of 1986 shall stand abated. The sick industrial companies act of 1985 sica was a key piece of. The bifr was established under the sick industrial companies special provisions act, 1985 sica. Where the whole of the undertaking of the sick industrial company is sold under a sanctioned scheme, the board may distribute the sale proceeds to the parties entitled thereto in accordance with the provisions of section 529a and other provisions of the companies act, 1956 1 of 1956. Introduction sick industrial companies special provisions act, 1985, as indicated by its title and preamble, was a special legislation enacted in public interest with the twin objects of securing the timely detection of sick and potentially sick companies speedy determination and enforcement of remedial measures i. The practical lawyer overriding effect of the sick. Reference to bifr under the sick industrial companies. Sick industrial companies act sica definition investopedia. Sica also has provisions which override all other laws except the few legislations mentioned in the act itself. Impact of sick industrial companies act on enforcement of. Accordingly, the board for industrial and financial reconstruction bifr was constituted and vested with powers for speedy determination of preventive, ameliorative, remedial and.
The sick industrial companies special provisions act, 1985. Although it aims to provide comprehensive provisions for the revival and rehabilitation. The sick industrial companies special provisions act. The sick industrial companies special provisions act, 1985 being act no. An act to make in public interest, special provisions with a view to securing the timely detection of sick and potentially sick. It applies to industrial undertakings both in the public and private sectors. The special court trial of offences relating to transactions in securities act1992. Effective date of sick industrial companies special provisions repeal act, 2003 is. Chapter 3 rehabilitation under sick industrial companies special provisions act, 1985 3. Where there has been under any scheme under this act an amalgamation of a sick industrial company with another company, the provisions of section 72a of the incometax act, 1961 43 of 1961 shall, subject to the modifications that the power of the central. Reference by the companies may be filled in form a us 151 of the sick industrial companies special provision act. Industrial sickness is an term applied to various things associated with industry that make people ill and cause them to miss work. Sick industrial companies special provisions act, 1985 repealed and bifr aifr dissolved december 1, 2016 in brief the ministry of finance mof, vide notification nos. An act to make, in the public interest, special provision with a view to securing the timely detection of sick and potentially sick companies owning industrial undertakings, the speedy determination by a board of experts of the preventive, ameliorative, remedial and other measures which need to be taken with respect to such companies and the expeditious enforcement of the measures so.
An act to make, in connection with the consolidation of the companies acts 1948 to 1983 and other enactments relating to companies, provision for transitional matters and savings, repeals including the repeal, in accordance with recommendations of the law commission, of certain provisions of the companies act 1948 which are no longer of practical utility and consequential amendments of other. Read to know more about the industrial sickness in this article for the upcoming upsc 2020 exam. Industrial sickness can be defined as a steady imbalance in the debtequity ratio that results in the distortion of the financial position of a unit. The sick industrial companies special provisions repeal act, 2003 sicspra shall come in force from december 01, 2016 vide notification issued in official gazette on november 25, 2016 1 amendment of sicspra before coming into force. Sick industrial companies special provisionsact1985. The sick industrial companies special provisions act, 1985 no. Under the sick industrial companies special provisions act, 1985, the bifr has powers to declare a company having one or more industrial undertakings as a sick industrial company and consider and sanction a scheme for revival and rehabilitation of the sick industrial company. Special provision for payment of tax by certain companies. Repeal of sick industrial companies special provisions. Full text containing the act, sick industrial companies special provisions act, 1985, with all the sections, schedules, short title, enactment date. The industrial finance corporation transfer of undertakings and repeal act1993. The sick industrial companies special provisions repeal act, 2003 was enacted to repeal the sick industrial companies special provisions act, 1985. Be it enacted by parliament in the fiftyfourth year of the republic of.
This chapter may and will replace the provisions of sick industrial companies special provisions act, 1985. Short title, extent, commencement and application 1 this act may be called the sick industrial companies special provisions act, 1985. The board may, if it is of opinion that any direction is necessary in the interest of the sick industrial company or creditors or shareholders or in the public interest, by order in writing direct the sick industrial company not to dispose of, except with the consent of the board, any of its assets. The most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act,1985 sica. To repeal the sick insdustrial companies special provisions act, 1985. Companies act, 1956 sick industrial companies special provisions act 1985, sica securitization and reconstruction of financial assets and enforcement of of security interest act 2002 sarfaesi several other special provisions implementation and supervision by 4 major agencies. Home actsofparliamentfromtheyear the sick industrial companies special provisions act, 1985. The most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act, 1985 sica. Sick industrial companies special provisions act, 1985 bare acts. Ministry of consumer affairs, food and public distribution. Board for industrial and financial reconstruction and ors.
Be it enacted by parliament in the fiftyfourth year of the republic of india as follows. Companies consolidation consequential provisions act. The solutions will have to be tailored to the specific industry, and only in that way can any real effect be made on improving the health and productivity of the industrial workforce the key is an aggressive workup on the health issues for a given segment of. Assistance from pro, bifr can be taken in filing the references. Revival and rehabilitation of sick companies under new act. Repeal of the sick industrial companies special provisions act, 1985 notified with effect from 1st december, 2016. Sick industrial companies special provisions repeal act, 2003. Industrial sickness definition, special provisions act.
Chapter xix of the 20 act lays down the provisions for the revival and rehabilitation of sick companies. November 01, 2016, provide that the sicspra shall be. Government finally repeals sica years after repeal act. Sick industrial companies special provisions act, 1985. In an event that took more than a decade to fructify, the ministry of finance vide a notification dated 25 th november 2016, has repealed the sick industrial companies special provisions act, 1985 sica with effect from 1 december this year. A new industrial policy was tabled in parliament on 24 july 1991 aiming to maintain growth in productivity and gainful employment and to encourage the growth of entrepreneurship and upgrades to technology. Board for industrial and financial reconstruction wikipedia. The sica had been enacted in the public interest deal with the problems of industrial sickness was regard to the crucial sectors where public money locked up.
Sick industrial companies special provisions act, 1985 and bifr. The board was set up in january 1987 and became functional as of 15 may 1987. The government defined the industrial sickness for the first time in the sick industrial companies special provisions act, 1985. An act to repeal the sick industrial companies special provisions. It contains special provisions for timely detection sick and potentially sick industrial company speedy determination and enforcement preventive. Sick industries, sick industrial companies special. Where on a demand by the secured creditors of a company representing fifty percent or more. The sick industrial companies act sica was a key piece of legislation dealing with the issue of rampant industrial sickness in india. The sick industrial companies special provisions act, 1985 was enacted with a view to securing timely detection of sick and potentially sick industrial companies. However, the petitioner would not be entitled to take steps in execution of the award and seek any relief which would be in violation of section 22 of sick industrial companies special provisions act, 1985 without permission of the board. The chapter describes the circumstances which determine the declaration of a company as a sick company, and also includes the rehabilitation process of the same. We may note this chapter has much wider impact then earlier act of 1985. The sick industrial companies special provisions act, 1985 sica was enacted to make special provisions for the timely detection of sick.
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