Full text containing the act, sick industrial companies special provisions act, 1985, with all the sections, schedules, short title, enactment date. Chapter 3 rehabilitation under sick industrial companies special provisions act, 1985 3. Impact of sick industrial companies act on enforcement of. Section 18 in the sick industrial companies special provisions act, 1985. Therefore, the sica is repealed with effect from 1 december, 2016. 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 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. The sick industrial companies special provisions act, 1985 was enacted with a view to securing timely detection of sick and potentially sick industrial companies. 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. This act may be called the sick industrial companies special provisions act.
The practical lawyer overriding effect of the sick industrial. Companies act, 2017 including amendments made through companies amendment ordinance, 2020 in track change. Apr 09, 2015 the sick industrial companies special provisions act, 1985 being act no. The most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act,1985 sica.
Changes that have been made appear in the content and are referenced with annotations. Section 4b of sick industrial companies special provisions. Sick industrial companies special provisions repeal act. 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. It aimed to repeal the presidency towns insolvency act, 1909 and sick industrial companies special provisions repeal act, 2003, among others. 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 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 chapter describes the circumstances which determine the declaration of a company as a sick company, and also includes the rehabilitation process of the same. Sick industrial companies special provisions act, 1985 bare acts. Sick industrial companies special provisions act, 1985 and bifr as passed by the houses of parliament a bill. Sick industries, sick industrial companies special. It contains special provisions for timely detection sick and potentially sick industrial company speedy determination and enforcement preventive. Rehabilitation under sick industrial companies special provisions act, 1985 3. 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.
Assistance from pro, bifr can be taken in filing the references. This chapter may and will replace the provisions of sick industrial companies special provisions act, 1985. Factories and workers act 1951 provided state regulated enforced system of. The sick industrial companies special provisions repeal act, 2003 was enacted to repeal the sick industrial companies special provisions act, 1985. There are changes that may be brought into force at a future date. Reference under section 34 of the industrial disputes act to be made within one months of the order or award. Company laws whether the provisions of the sick industrial.
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 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. 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. An arbitrator to make an award in respect of a reference under the industrial disputes act, within three months of reference. 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 repeal. This act shall come into operation on a date fixed by the administrator by notice published in the gazette. An act to repeal the sick industrial companies special provisions act, 1985. Home actsofparliamentfromtheyear the sick industrial companies special provisions act, 1985. The board for industrial and financial reconstruction bifr was formed under the sica to determine the sickness of such industrial companies and. Section 252 of the insolvency and bankruptcy code, 2016 ibc, which came in to force w. 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. Where on a demand by the secured creditors of a company representing fifty percent or more.
Sica also has provisions which override all other laws except the few legislations mentioned in the act itself. 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. 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. The sick industrial companies special provisions act, 1985 no. Revival and rehabilitation of sick companies under new act. The sick industrial companies special provisions act, 1985. The sick industrial companies special provisions repeal act. 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. Industrial conciliation act 1959 act which now incorporated black workers in private sector excluding those in agriculture, domestic service, government employees.
Chapter xix of the 20 act lays down the provisions for the revival and rehabilitation of sick companies. The sick industrial companies act of 1985 sica was a key piece of. The sick industrial companies special provisions act, 1985 sica was. Sick industrial companies special provisions act,1985. 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. Jul 08, 2016 the most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act, 1985 sica. 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. Repeal of sick industrial companies special provisions. 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. An act to repeal the sick industrial companies special provisions.
Overview of industrial sickness in india your article library. Sick industrial companies special provisions act, 1985 and bifr. Be it enacted by parliament in the fiftyfourth year of the republic of india as follows. 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.
The most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act, 1985 sica. Although it aims to provide comprehensive provisions for the revival and rehabilitation. The board for industrial and financial reconstruction bifr was formed under the sica to determine the sickness of such industrial companies and to. 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 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. 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 objectives of this act sica as incorporated in its preamble, emphasis the following points.
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. The act banned prohibition of raceaased trade unions, and suppressed militant television. 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. Repeal of sick industrial companies special provisions act. Board for industrial and financial reconstruction wikipedia. 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. 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. Reference by the companies may be filled in form a us 151 of the sick industrial companies special provision act. 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 sick industrial companies special provisions act, 1985 being act no.
Sick industrial companies special provisions repeal act, 2003. 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 consequential amendments of other. Provided that if the board of directors had sufficient reasons even before such. 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. Workmen special provisions act, to be made within two monts of application. The bifr and aifr stand dissolved with effect from that date, and all proceedings before them stand abated. Sick industrial companies special provisions act, 1985 repealed and bifr aifr dissolved pdf. It applies to industrial undertakings both in the public and private sectors. The sick industrial companies special provisions act, 1985 chapter i preliminary 1. 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. 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. Section 18 in the sick industrial companies special.
Board of industrial and financial reconstruction bifr. Companies consolidation consequential provisions act. Revival and rehabilitation of sick companies under new act 20. Sick industrial companies special provisions act, 1985. 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 practical lawyer overriding effect of the sick. 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. Sick industrial companies act sica definition investopedia. We may note this chapter has much wider impact then earlier act of 1985. Rehabilitation under sick industrial companies special. Companies consolidation consequential provisions act 1985. Be it enacted by parliament in the fiftyfourth year of the republic of. 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.
The minister shall cause notice of such direction to be published in the gazette. 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. Effective date of sick industrial companies special provisions repeal act, 2003 is not yet notified in the official gazette. Construction industry portable paid long service leave act 1985 table of provisions long title part i preliminary 1. 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. Construction industry long service leave payments board established 6. 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. 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. Short title, extent, commencement and application 1 this act may be called the sick industrial companies special provisions act, 1985.