Reference by the companies may be filled in form a us 151 of the sick industrial companies special provision act. Changes that have been made appear in the content and are referenced with annotations. Jan 28, 2018 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any scheme sanctioned under subsection 4 or any scheme under implementation under subsection 12 of section 18 of the repealed enactment i. Where an order is made under subsection 3 of section 17 in relation to any sick industrial company, the operating agency specified in the order shall prepare. 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. Assistance from pro, bifr can be taken in filing the references. It contains special provisions for timely detection sick and potentially sick industrial company speedy determination and enforcement preventive. Board of industrial and financial reconstruction bifr. Repeal of sick industrial companies special provisions. 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 entire. The sick industrial companies special provisions act, 1985. This act may be called the sick industrial companies special provisions act, 1985. The decision of bifr is final as it has its binding on all concerned. Be it enacted by parliament in the fiftyfourth year of the republic of india as follows.
Sick industrial companies special provisions act, 1985 repealed and bifr aifr dissolved pdf. An act to make in public interest, special provisions 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 determined. Companies consolidation consequential provisions act. The objectives of this act sica as incorporated in its preamble, emphasis the following points. The practical lawyer overriding effect of the sick industrial. Chapter xix of the 20 act lays down the provisions for the revival and rehabilitation of sick companies. There are changes that may be brought into force at a future date. Companies consolidation consequential provisions act 1985 repealed is up to date with all changes known to be in force on or before 17 november 2019. 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. 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. Reference under section 34 of the industrial disputes act to be made within one months of the order or award.
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. Sica also has provisions which override all other laws except the few legislations mentioned in the act itself. Board for industrial and financial reconstruction wikipedia. 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. Full text containing the act, sick industrial companies special provisions act, 1985, with all the sections, schedules, short title, enactment date. An overview sankalp jain introduction sick industrial unit is defined as a unit or a company having been in existence for not less than five years which is found at the end of any financial year to have incurred accumulated losses equal to or exceeding its entire net worth.
Construction industry long service leave payments board established 6. The sick industrial companies special provisions act. The minister shall cause notice of such direction to be published in the gazette. The sick industrial companies special provisions repeal act. The board for industrial and financial reconstruction bifr was formed under the sica to determine the sickness of such industrial companies and. Overview of industrial sickness in india your article library. Therefore, the sica is repealed with effect from 1 december, 2016. Provided that if the board of directors had sufficient reasons even before such. 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. The sick industrial companies special provisions act, 1985 sica was. It aimed to repeal the presidency towns insolvency act, 1909 and sick industrial companies special provisions repeal act, 2003, among others. Section 18 in the sick industrial companies special provisions act, 1985. The sick industrial companies special provisions repeal act, 2003 was enacted to repeal the sick industrial companies special provisions act, 1985. When an industrial company has become a sick industrial company, the board of directors of the company, shall, within sixty days from the date of finalisation of the duly audited accounts of the company for the financial year as at the end of which the company has become a sick industrial company, make a reference to the board for determination of the measures which shall be adopted with respect to the company.
Workmen special provisions act, to be made within two monts of application. 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 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. This act was enacted with an objective to check sickness and expedite the process of revival of efficient and viable units and closure of unviable units. An act to repeal the sick industrial companies special provisions.
Short title, extent, commencement and application 1 this act may be called the sick industrial companies special provisions act, 1985. An act to repeal the sick industrial companies special provisions act, 1985. Section 252 of the insolvency and bankruptcy code, 2016 ibc, which came in to force w. The act banned prohibition of raceaased trade unions, and suppressed militant television. The sick industrial companies special provision act, 1985 defines, an industrial unit not registered for less than seven years as sick if it has incurred cash losses for the current and preceding year equal to or exceeding its net worth. The most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act, 1985 sica. The most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act,1985 sica. Companies consolidation consequential provisions act 1985.
Where on a demand by the secured creditors of a company representing fifty percent or more. The sick industrial companies special provisions act, 1985 chapter i preliminary 1. 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 determined and for matters connected therewith or incidental thereto. The repeal act provides for repeal of the sick industrial companies special provisions act, 1985 sica and related matters. The sick industrial companies special provisions act, 1985 being act no. 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 industries, sick industrial companies special. We may note this chapter has much wider impact then earlier act of 1985. 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. The board for industrial and financial reconstruction bifr was formed under the sica to determine the sickness of such industrial companies and to. This act shall come into operation on a date fixed by the administrator by notice published in the gazette. It applies to industrial undertakings both in the public and private sectors. The sick industrial companies special provisions act, 1985 no.
Sep 24, 20 company laws whether the provisions of the sick industrial companies special provisions act, 1985 hereinafter for short sica are applicable to the foreign companies registered in india under the provisions of section 591 of the companies act, 1956 hereinafter for short the act and, therefore, the revival scheme framed by the board for industrial and financial. Sick industrial companies special provisions act,1985. The sick industrial companies special provisions act, 1985 was enacted with a view to securing timely detection of sick and potentially sick industrial companies. Sick industrial companies special provisions repeal act, 2003 1 of 2003 section 4b board has registered the reference before the repeal of the act i. 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. 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. Sick industrial companies special provisions repeal act, 2003. Impact of sick industrial companies act on enforcement of. Company laws whether the provisions of the sick industrial companies special provisions act, 1985 hereinafter for short sica are applicable to the foreign companies registered in india under the provisions of section 591 of the companies act, 1956 hereinafter for short the act and, therefore, the revival scheme framed by the board for industrial and. Sick industrial companies special provisions act, 1985 and bifr. Section 18 in the sick industrial companies special. Sick industrial companies special provisions act, 1985 bare acts. An arbitrator to make an award in respect of a reference under the industrial disputes act, within three months of reference.
Rehabilitation under sick industrial companies special. The board for industrial and financial reconstruction bifr was set up in january 1987 under the sick industrial companies special provision act, 1985 sica in order to revive potentially viable companies. Home actsofparliamentfromtheyear the sick industrial companies special provisions act, 1985. Factories and workers act 1951 provided state regulated enforced system of. The practical lawyer overriding effect of the sick. Effective date of sick industrial companies special provisions repeal act, 2003 is not yet notified in the official gazette. Sick industrial companies special provisions act, 1985. Apr 09, 2015 the sick industrial companies special provisions act, 1985 being act no. Jul 08, 2016 the most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act, 1985 sica. The sick industrial companies act of 1985 sica was a key piece of. 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.
Sick industrial companies act sica definition investopedia. Revival and rehabilitation of sick companies under new act. Industrial conciliation act 1959 act which now incorporated black workers in private sector excluding those in agriculture, domestic service, government employees. Sick industrial companies special provisions repeal act. Company laws whether the provisions of the sick industrial. Revival and rehabilitation of sick companies under new act 20. Repeal of sick industrial companies special provisions act, 1985. Sick industrial companies special provisions act, 1985 and bifr as passed by the houses of parliament a bill. Rehabilitation under sick industrial companies special provisions act, 1985 3. In exercise of the powers conferred by section 506 of the companies ordinance, 1984 xlvii of 1984, the federal government is pleased to make the following rules, the same having been. Industrial disputes special provisions industrial disputes special provisions an act to provide for the removal of certain difficulties in the settlement of industrial disputes and other matters under the industrial disputes act which have arisen in consequence of decisions made by the supreme court and decisions made on appeal to her majesty in council, and. Chapter 3 rehabilitation under sick industrial companies special provisions act, 1985 3. The sick industrial companies act sica was a key piece of legislation dealing with the issue of rampant industrial sickness in india. 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.
Accordingly, the board for industrial and financial reconstruction bifr was constituted and vested with powers for speedy determination of preventive, ameliorative, remedial and. 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. 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. Abolition of sick industrial companies act the sick industrial companies special provisions act, 1985 received the assent of the president of india on 8th january, 1986. Although it aims to provide comprehensive provisions for the revival and rehabilitation. Construction industry portable paid long service leave act 1985 table of provisions long title part i preliminary 1.
This chapter may and will replace the provisions of sick industrial companies special provisions act, 1985. Be it enacted by parliament in the fiftyfourth year of the republic of. Repeal of sick industrial companies special provisions act. 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. 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. The sick industrial companies special provisions repeal. The bifr and aifr stand dissolved with effect from that date, and all proceedings before them stand abated. This act may be called the sick industrial companies special provisions act. The sick industiral companies special provisions act, 1985 1 of 1986 8th january 1986 an act to make, in the public interest, special provisions with a view to securing the timely detection of sick and potentially sick companies owning industrial undertakings, the speedy determination by a board of. Companies act, 2017 including amendments made through companies amendment ordinance, 2020 in track change. Section 4b of sick industrial companies special provisions.