Impact of sick industrial companies act on enforcement of. An act to repeal the sick industrial companies special provisions act, 1985. Apr 09, 2015 the provisions of sick industrial companies special provisions act, 1985 after having assented by the president of india on 8th january, 1986, the same was provided to objective to check sickness and expedite the process of revival of efficient and viable sick industrial companies and closure of those unviable. The national bank for agriculture and rural development act 1981 chit fund act 1982 nabard general regulations 1982 banking companies period of preservation of records rules 1985 banking regulation companies rules 1949 sick industrial companies special provisions act 1985 shipping development fund committee abolition act 1986. Sick industrial companies special provisions act, 1985. The sick industrial companies special provisions act, 1985 sica, which presently deals with the revival and rehabilitation of companies, was repealed by passage of the sick industrial companies special provisions repeal bill, 2001 by the parliament. Amendment to sick industrial companies special provisions repeal act, 2003 section 252 rw eighth schedule of the ibc. Special provisions repeal act, 2003 hereinafter referred to as sica. Repeal of sick industrial companies special provisions. Indian sick industrial companies act, 1985 sica is a unique legislation introduced in india with the purpose of identifying industrial companies in financial distress and introducing timely preventive, ameliorative, and remedial measures to alleviate its condition. Banking acts department of financial services ministry. Provisions repeal act, 2003, hereinafter referred to as sica repeal act, 2003. The sick industrial companies legislative department. Sick industrial companies special provisions act 1985 shipping development fund committee abolition act 1986.
We may note this chapter has much wider impact then earlier act of 1985. The sick industrial companies act sica, applicable to industrial companies, was a key piece of legislation dealing with the issue of rampant industrial sickness in india. Companies act were never enforced, and thus, the sica repeal law too. Board for industrial and financial reconstruction wikipedia. The companies act 1956 deals with sick companies provisions under section 424a to 424 l. Provisions of the drt act has overriding effect over any other law for the time being enforced except. Sickindustrialcompaniesspecialprovisionsrepealact2003. Sick industrial companies special provisions act, 1985 and bifr.
Petitioner has further stated that the sick industrial companies special. Jan 01, 2004 in exercise of powers conferred by subsection 2 of section 1 of the sick industrial companies special provisions repeal act, 2003 1 of 2004, the central government hereby appoints the 1 st day of december, 2016, as the date on which the provisions of the said act shall come into force. 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. Jul 05, 2017 the sick industrial companies special provisions act, 1985 sica was passed by the parliament with the objective of securing the timely detection of sick and potentially sick companies and speedy determination by a board of experts. Pursuant to the aforesaid, all proceedings or appeals of whatever nature. Rules regulations notifications orders circulars statutory ordinance statutes. The sick industrial companies special provisions act, 1985. The repeal act provides for repeal of the sick industrial companies special provisions act, 1985 sica and related matters. Deprived of adequate insolvency protection, indian companies in. Jul 29, 2020 the companies act, second amendment in 2002 in companies act, 1956 provided for the setting up of a national company law tribunal sec. The seventh schedule amends the securitisation and reconstruction of financial assets and enforcement of security interest act, 2002. Act, 1985 hereinafter referred to as sica act, 1985 was repealed by. Jul 30, 2020 after an amendment through ibc, 2016 to section 4 b of the sick industrial companies special provisions repeal act, 2003, earlier incorporated provision for references and inquiry in accordance with the companies act, 1956 was substituted with references and inquiry in accordance with the ibc, 2016.
Sica was to be repealed through sick industrial companies special provisions. Industrial and financial reconstruction bifr and any appeal. Industrial companies special provisions repeal act, 2003. And, whereas, the unamended second proviso to clause b of section 4 of the sick industrial companies special provisions repeal act, 2003 provides that any scheme sanctioned under subsection 4 or any scheme under implementation under subsection 12 of section 18 of the repealed enactment i.
This boar d could, if it deemed necessary, require by order, an operating a gency to enquire into and make a. The sick industrial companies special provisions repeal act, 2003 sicspra shall come in force from december 01, 2016 vide notification. The sick industrial companies special provisions repeal act, 2003. Ninth schedule amendment to the payment and settlement systems act, 2007 10. This has resulted in the dissolution of the bifr and other bodies formed under the sica. The objective of the act, 1985 was to timely detection of sick and potentially sick companies owning industrial undertakings and helping them in its revival and for. Repeal of sick industrial companies special provisions act. Sick industrial companies special provisions repeal act. Section 4b of sick industrial companies special provisions. Sick industrial companies special provisions repeal. Sick industrial companies special provisions act and f. For the removal of doubts, it is hereby declared that an industrial company existing immediately before the commencement of the sick industrial companies. Industrial sickness definition, special provisions act.
Act, 1985, substitution of clause b of section 4 of the sick industrial companies. Dec 30, 2020 sica was repealed and replaced in 2003 by the sick industrial companies special provisions repeal act of 2003, which watered down some aspects of the original act and fixed some problematic factors. Consumer protection act, 1986 73 the fifth decade chapter 35. 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. Banking awareness ebook important acts of banking sector. In 1985, the sick industrial companies special provision act, 1985 was enacted. Section 4b has been amended and same has given liberty to companies before bifr and aaifr to file a reference before nclt within one hundred and eighty days. Eleventh schedule amendment to the companies act, 7272017 20. Sica was repealed and replaced in 2003 by the sick industrial companies special provisions repeal act of 2003, which watered down some aspects of the. Feb 07, 2010 but some companies perceived sica as an official exit route, thereby resulting into losses to creditors and increased npas in the banking sector sica, 1985, was repealed by sick industrial companies special provisions repeal act, 2003. According to this act, sick industrial company indicates an industrial company registered for not less than seven years which is showing accumulated losses equal to or exceeding its net worth at the end of any.
It may be noted that at present, no rules relating to the amount of cess for rehabilitation or revival or protection of assets of sick industrial companies. Feb 04, 2014 this chapter may and will replace the provisions of sick industrial companies special provisions act, 1985. Sica was repealed and replaced in 2003 by the sick industrial companies special provisions repeal act of 2003, which watered down some aspects of the original act and fixed some problematic factors. Any declaration made under subsection 3 with respect to a sick industrial company shall have effect notwithstanding anything contained in the companies act, 1956 1 of 1956, or any other law, the memorandum and articles of association of the company or any instrument having effect under the said act or other law or any agreement or any decree or order of a court, tribunal, officer or other.
Statement on industrial policy, 1991 81 chapter 38. Dec 09, 2016 industrial companies special provisions repeal act, 2003. Sica was enacted in india to detect sick or potentially sick companies owning industrial undertakings, and their revival, if possible, or their closure, if not. Assistance from pro, bifr can be taken in filing the references. The bifr was established under the sick industrial companies special provisions act, 1985 sica. The ninth schedule amends the payment and settlement systems act, 2007. No fees is payable for making reference under insolvency. Sick companies the companies bill 2011 caclubindia.
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. The eighth schedule amends the sick industrial companies special provisions repeal act, 2003. However, legal hurdles prevented the nclt from being constituted. Short title, extent, commencement and application 1 this act may be called the sick industrial companies special provisions act, 1985. The sick industrial companies special provisions repeal act.
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. Read to know more about the industrial sickness in this article for the upcoming upsc 2021 exam. Reference by the companies may be filled in form a us 151 of the sick industrial companies special provision act. Sick industrial companies act sica definition investopedia. The sick industrial companies special provisions act. Any declaration made under subsection 3 with respect to a sick industrial company shall have effect notwithstanding anything contained in the companies act, 1956 1 of 1956, or any other law, the memorandum and articles of association of the company or any instrument having effect under the said act or other law or any agreement or any. The council also noted that paragraph 63g of the statement on the companies auditors report order, 2003, issued by the institute of chartered accountants of india states as follows. Section 22 in the sick industrial companies special. In exercise of powers conferred by subsection 2 of section 1 of the sick industrial companies special provisions repeal act, 2003 1 of 2004, the central government hereby appoints the 1st day of december, 2016, as the date on which the provisions of the said act shall come into force. Sick industrial companies special provisions act 1985 the national housing bank act 1987 the special court trial of offences relating to transactions in securities act 1992.
National highways authority of india act, 1988 79 chapter 37. Sick industrial companies special provisions repeal act, 2003. Apr 09, 2015 notably, the act was amended twice, firstly in the year 1991 and secondly in the 1998. Nov 30, 2016 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. Be it enacted by parliament in the fiftyfourth year of the republic of india as follows. Amendment to the sick industrial companies special provisions repeal act, 2003 1 of 2004 in section 4, for subclause b, the following subclause shall be substituted, namely b on such date as may be notified by the central government in this behalf, any appeal preferred to the appellate authority or any reference made or inquiry pending to or before the board or any proceeding. With effect from december 1, 2016, the sica has been repealed by the sick industrial companies special provisions repeal act, 2003 repeal act. The sick industrial companies special provisions repeal act, 2003 replaced sica and sought to dissolve the bifr and the appellate authority for industrial and financial reconstruction aaifr, replacing them by the nclt and nclat. However, the act finally was repealed along with dissolution of the board and appellate authority under this act, in the year 2003, by the sick industrial companies special provisions repeal act, 2003. On the dissolution of the appellate authority and the board,a. The parliament of india in the year 1985 introduced and passed a legislation namely, the sick industrial companies act, 1985 hereinafter referred to as the act, 1985. Sick is one of the worlds leading producers of sensors and sensor solutions for industrial automation applications. The sick industrial companies special provisions repeal. Where on a demand by the secured creditors of a company representing fifty percent or more.
Full text containing the act, sick industrial companies special provisions repeal act, 2003, with all the sections, schedules, short title, enactment date, and footnotes. As per section 246aa of companies act 1956 sick industrial company means an industrial company, which has at the end of any financial year. As a result, the bifr and the appellate authority for industrial and financial sick industrial companies special provisions act 1985 got repealed. And, whereas, the unamended second proviso to clause b of section 4 of the sick industrial companies special provisions repeal act, 2003 provides that any scheme sanctioned under subsection 4 or any scheme under implementation under subsection 12. 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. Act, 2003 1 of 2004 in the manner specified in the eighth schedule to the said code.
Eighth schedule amendment to the sick industrial companies special provisions repeal act, 2003. Australian corporations act 2001, indian sick industrial companies special provisions act of 1985 as replaced by companies act, 20 and supplanted by the insolvency and. To repeal the sick insdustrial companies special provisions act, 1985. The members are aware that during 200203 the company became sick industrial company as per the provisions of sick industrial companies act 1985 sica and a reference was filed with board for.
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