SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT, 1985
[Act No. 1
of Year 1986, dated 8th. January, 1986]
CHAPTER I: PRELIMINARY
1. Short
title, extent, commencement and application
2.
Declaration
3.
Definitions
4.
Establishment of Board
5.
Constitution of appellate authority
6. Term
of office, conditions of service, etc. of Chairman and other members
7.
Removal of members from office in certain circumstances
8.
Secretary, officers and other employees of Board or appellate
authority
9.
Salaries, etc. be defrayed out of the Consolidated Fund of India
10.
Vacancies, etc. not to invalidate proceedings of Board and appellate
authority
11.
Members and staff of Board and appellate authority to be public
servants
12.
Constitution of Benches of Board or appellate authority
13.
Procedure of Board and appellate authority
14.
Proceedings before Board or appellate authority to be judicial
proceedings
CHAPTER III : 4[REFERENCES, INQUIRIES AND SCHEMES]
15.
Reference to Board
16.
Inquiry into working of sick industrial companies
17.
Powers of Board to make suitable order on the completion of inquiry
18.
Preparation and sanction of schemes
19.
Rehabilitation by giving financial assistance
24[19A.
Arrangement for continuing operations, etc. during inquiry
20.
Winding up of sick industrial company
21.
Operating agency to prepare complete inventory, etc.
22.
Suspension of legal proceedings, contracts, etc.
2[22A.
Direction not to dispose of assets
CHAPTER IV: PROCEEDINGS IN CASE OF POTENTIALLY SICK INDUSTRIAL
COMPANIES, MISFEASANCE PROCEEDINGS, APPEALS AND MISCELLANEOUS
23. Loss
of fifty per cent net worth by industrial companies
2[23A.
Proceedings on report, etc. of loss of fifty per cent net worth
2[23B.
Power of Board to call for periodic information
24.
Misfeasance proceedings
25.
Appeal
26. Bar
of jurisdiction
27.
Delegation of powers
28.
Returns and information
29.
Power to seek the assistance of Chief Metropolitan Magistrate and
District Magistrate
30.
Protection of action taken in good faith
31.
Saving of pending proceedings
32.
Effect of the Act on other laws
33.
Penalty for certain offences
34.
Offences by companies
35.
Power to remove difficulties
36.
Power to make rules
THE
SCHEDULE : DECLARATION OF FIDELITY AND SECRECY
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
Be it enacted by Parliament
in the Thirty-sixth Year of the Republic of India as follows: -
CHAPTER I: PRELIMINARY
1.
Short title, extent, commencement and application
(1) This Act may be
called the Sick Industrial Companies (Special Provisions) Act, 1985.
(2) It extends to the
whole of India.
(3) It shall come into
force on such date as the Central Government may, by notification in the
Official Gazette, appoint and different dates may be appointed for
different provisions of this Act and any reference in any provision of
this Act to the commencement of this Act shall be construed as a
reference to the commencement of that provision.
(4) It shall apply, in
the first instance, to all the scheduled industries other than the
scheduled industry relating to ships and other vessels drawn by power.
(5) The Central
Government may, in consultation with the Reserve Bank of India, by
notification, apply the provisions of this Act, on and from such date as
may be specified in the notification, to the scheduled industry relating
to ships and other vessels drawn by power.
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It is hereby declared that
this Act is for giving effect to the policy of the State towards
securing the principles specified in clauses (b) and (c) of article 39
of the Constitution.
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(1) In this Act, unless
the context otherwise requires-
(a) "appellate
authority" means the appellate authority for industrial and financial
reconstruction constituted under section 5;
(b) "board" means
the Board for Industrial and Financial Reconstruction established under
section 4;
(c) "Chairman"
means the Chairman of the Board, or as the case may be, the appellate
authority;
(d) "company" means
a company as defined in section 3 of the Companies Act, 1956 1[***];
2[(da)
"date of finalisation of the duly audited accounts" means the date on
which the audited accounts of the company are adopted at the annual
general meeting of the company;]
(e) "industrial
company" means company which owns one or more industrial undertakings;
(f) "industrial
undertakings" means any undertaking pertaining to a scheduled industry
carried on in one or more factories by any company but does not include-
(i) an
ancillary industrial undertaking as defined in clause (aa) of section 3
of the Industries (Development and Regulation) Act, 1951; and
(ii) a small
scale industrial undertaking as defined in clause (j) of the aforesaid
section 3;
(g) "member" means
a member of the board or, as the case may be, the appellate authority
and includes the Chairman thereof;
2[(ga)
"net worth" means the sum total of the paid-up capital and free
reserves.
Explanation:
For the purposes of this clause, "free reserves" means all reserves
credited out of the profits and share premium account but does not
include reserves credited out of re-evaluation of assets, write-back of
depreciation provisions and amalgamation;]
(h) "notification"
means a notification published in the Official Gazette.
3[(i)
"operating agency" means any public financial institution, State level
institution, scheduled bank or any other person as may be specified by
general or special order as its agency by the board;]
(j) "prescribed"
means prescribed by rules made under this Act;
(k) [Omitted by
Act 12 of 1994];
(l) "Reserve Bank"
means the Reserve Bank of India constituted under section 3 of the
Reserve Bank of India Act, 1934;
(m) "scheduled
bank" means a bank for the time being included in Schedule II to the
Reserve Bank of India Act, 1934;
(n) "scheduled
industry" means any of the industries specified for the time being in
Schedule I to the Industries (Development and Regulation) Act, 1951;
3[(o)
"sick industrial company" means an industrial company (being a company
registered for not less than five years) which has at the end of any
financial year accumulated losses equal to or exceeding its entire net
worth.
Explanation:
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 net
worth, shall be deemed to be a sick industrial company;]
(p) "State level
institution" means any of the following institutions, namely,-
(i) State
Financial Corporations established under section 3 or section 3A and
institutions notified under section 46 of the State Financial
Corporations Act, 1951 (63 of 1951);
(ii) State
Industrial Development Corporations registered under the Companies Act,
1956 (1 of 1956);
(iii) Such
other institutions, being companies and not being public financial
institutions, engaged in the development or financing of industrial
undertakings, as the Central Government may, by notification, specify:
PROVIDED that no
institution shall be so specified unless not less than fifty-one per
cent of the paid-up share capital thereof is held by any State
Government or Governments or by any institution or institutions
mentioned in sub-clauses (i) and (ii) or partly by one or more public
financial institutions or institutions mentioned in sub-clauses (i) and
(ii) and partly by one or more State Governments.
(2) (a) Words and
expressions used and not defined in this Act shall have the meanings, if
any, respectively assigned to them in the Companies Act, 1956.
(b) Words and
expressions used but not defined either in the Act or in the Companies
Act, 1956, shall have the meanings, if any, respectively assigned to
them in the Industries (Development and Regulation) Act, 1951.
(3) Any reference in
this Act to any other enactment or any provision thereof, shall, in
relation to an area in which such enactment of such provision is not in
force, be construed as a reference to the corresponding law or the
relevant provision of the corresponding law, if any, in force in that
area.
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(1) With effect from
such date as the Central Government may, by notification, appoint, there
shall be established a Board to be known as the "Board for Industrial
and Financial Reconstruction" to exercise the jurisdiction and powers
and discharge the functions and duties conferred or imposed on the Board
by or under this Act.
(2) The Board shall
consist of a Chairman and not less than two and not more than fourteen
other members, to be appointed by the Central Government.
(3) The Chairman and
other members of the Board shall be persons who are or have been or are
qualified to be High Court Judges, or persons of ability, integrity and
standing who have special knowledge of, and professional experience of
not less than fifteen years in science, technology, economics, banking
industry, law, labour matters, industrial finance, industrial
management, industrial reconstruction, administration, investment,
accountancy, marketing or any other matter, the special knowledge of ,
or professional experience in which, would be in the opinion of the
Central Government useful to the Board.
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(1) The Central
Government may, by notification, constitute, with effect from such date
as may be specified therein, an appellate authority to be called the
"Appellate Authority for Industrial and Financial Reconstruction"
consisting of a Chairman and not more than three other members, to be
appointed by that government, for hearing appeals against the orders of
the Board under this Act.
(2) The Chairman shall
be a person who is or has been a Judge of the Supreme Court or who is or
has been a Judge of a High Court for not less than five years.
(3) A member of the
appellate authority shall be a person who is or has been a Judge of a
High Court or who is or has been an officer not below the rank of a
Secretary to the Government of India or who is or has been a member of
the Board for not less than three years.
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(1) Before appointing
any person as the Chairman or other member, the Central Government shall
satisfy itself that the person does not and will not, have any such
financial or other interest as is likely to affect prejudicially his
functions as such member.
(2) The Chairman and
every other member shall hold office for such period, not exceeding five
years, as may be specified by the Central Government in the order of his
appointment, but shall be eligible for reappointment :
PROVIDED that no person
shall hold office as the Chairman or other member after he has attained
the age of sixty-five years.
(3) Notwithstanding
anything contained in sub-section (1), a member may-
(a) by writing
under his hand and addressed to the Central Government resign his office
at any time;
(b) be removed from
his office in accordance with the provisions of section 7.
(4) A vacancy caused by
the resignation or removal of the Chairman or any other member under
sub-section (3) or otherwise shall be filled by fresh appointment.
(5) In the event of the
occurrence of a vacancy in the office of the Chairman by reason of his
death, registration or otherwise, such one of the members as the Central
Government may, by notification, authorise in this behalf shall act as
the Chairman till the date on which a new Chairman, appointed in
accordance with the provisions of this Act, to fill such vacancy, enters
upon his office.
(6) When the Chairman
is unable to discharge his functions owing to absence, illness or any
other cause, such one of the members as the Chairman may authorise in
writing in this behalf, shall discharge the functions of the Chairman,
till the date on which the Chairman resumes his duties.
(7) The salaries and
allowances payable to and the other terms and conditions of service of
the Chairman and other members shall be such as may be prescribed:
PROVIDED that neither
the salary and allowances nor the other terms and conditions of service
of the Chairman or any other member shall be varied to his disadvantage
after his appointment.
(8) The Chairman and
every other member, shall, before entering upon his office make a
declaration of fidelity and secrecy in the form set out in the Schedule.
(9) The Chairman or any
other member ceasing to hold office as such shall not hold any
appointment or be connected with the management or administration in any
company in relation to which any matter has been the subject matter of
consideration before the Board or, as the case may be, the appellate
authority, for a period of five years from the date on which he ceases
to hold such office.
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(1) The Central
Government may remove from office any member, who-
(a) has been
adjudged as insolvent, or
(b) has been
convicted of an offence which, in the opinion of the Central Government,
involves moral turpitude, or
(c) has become
physically or mentally incapable of acting as a member, or
(d) has acquired
such financial or other interest as is likely to affect prejudicially
his functions as a member, or
(e) has so abused
his position as to render his continuance in offence prejudicial to the
public interest.
(2) Notwithstanding
anything contained in sub-section (1), no member shall be removed from
his office on the ground specified in clause (d) or clause (e) of that
sub-section unless the Supreme Court on a reference being made to it in
this behalf by the Central Government, has, on an inquiry held by it in
accordance with such procedure as it may specify in this behalf,
reported that the member ought, on such grounds, to be removed.
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(1) The Central
Government shall appoint a Secretary to the Board and a Secretary (by
whatever name called) to the appellate authority to exercise and
perform, under the control of the Chairman, such powers and duties as
may be prescribed or as may be specified by the Chairman.
3[(2)
The Central Government may provide the Board and the appellate authority
with such other officers and employees as may be necessary for the
efficient performance of the functions of the Board and the appellate
authority.]
(3) The salaries and
allowances payable to and the conditions of service of the Secretary and
other officers and employees of the Board and the appellate authority
shall be such as may be prescribed:
PROVIDED that such
Secretary, officer or other employee shall, before entering upon his
duties, make a declaration of fidelity and secrecy in the form set out
in the Schedule.
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The salaries and allowances
payable to the members and the administrative expenses, including
salaries, allowances and pension, payable to or in respect of the
officers and other employees of the Board and the appellate authority
shall be defrayed out of the Consolidated Fund of India.
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No act or proceeding of the
Board, or, as the case may be, the appellate authority shall be
questioned on the ground merely of the existence of any vacancy or
defect in the constitution of the Board or the appellate authority or
any defect in the appointment of a person acting as a member of the
Board or the appellate authority.
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The Chairman and other
members and the officers and other employees of the Board and the
appellate authority shall be deemed to be public servants within the
meaning of section 21 of the Indian Penal Code.
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(1) The jurisdiction,
powers and authority of the Board or the appellate authority may be
exercised by Benches thereof.
(2) The Benches shall
be constituted by the Chairman and each Bench shall consist of not less
than two members.
3[(3)
If the members of a Bench differ in opinion on any point, the point
shall be decided according to the opinion of the majority, if there is a
majority, but if the members are equally divided, they shall state the
point or points on which they differ, and make a reference to the
Chairman of the Board or, as the case may be, the appellate authority
who shall either hear the point or points himself or refer the case for
hearing on such point or points by one or more of the other members and
such point or points shall be decided according to the opinion of the
majority of the members who have heard the case including those who
first heard it.
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(1) Subject to the
provisions of this Act, the Board or, as the case may be, the appellate
authority, shall have powers to regulate-
(a) the procedure
and conduct of the business;
(b) the procedure
of the Benches, including the places at which the sittings of the
Benches shall be held;
(c) the delegation
to one or more members of such powers or functions as the Board or, as
the case may be, the appellate authority may specify.
(2) In particular and
without prejudice to the generality of the foregoing provisions, the
powers of the Board or, as the case may be, the appellate authority,
shall include the power to determine the extent to which persons
interested or claiming to be interested in the subject matter of any
proceeding before it may be allowed to be present or to be heard, either
by themselves or by their representatives or to cross-examine witnesses
or otherwise to take part in the proceedings.
(3) The Board or the
appellate authority shall, for the purposes of any inquiry or for any
other purpose under this Act, have the same powers as are vested in a
civil court under the Code of Civil Procedure, 1908 while trying suits
in respect of the following matters, namely,-
(a) the summoning
and enforcing the attendance of any witness and examining him on oath;
(b) the discovery
and production of document or other material object producible as
evidence;
(c) the reception
of evidence on affidavit;
(d) the
requisitioning of any public record from any court or office;
(e) the issuing of
any commission for the examination of witnesses;
(f) any other
matter which may be prescribed.
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The Board or the appellate
authority shall be deemed to be a civil court for the purposes of
section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 and
every proceeding before the Board or the appellate authority shall be
deemed to be a judicial proceeding within the meaning of sections 193
and 228 and for the purposes of section 196 of the Indian Penal Code.
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CHAPTER III : 4[REFERENCES,
INQUIRIES AND SCHEMES]
(1) 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:
PROVIDED that if the
Board of Directors has sufficient reasons even before such finalisation
to form the opinion that the company had become a sick industrial
company, the Board of Directors shall, within sixty days after it has
formed such opinion, make a reference to the Board for the determination
of the measures which shall be adopted with respect to the company.
(2) Without prejudice
to the provisions of sub-section (1), the Central Government or the
Reserve Bank or a State Government or a public financial institution or
a State level institution or a scheduled bank may, if it has sufficient
reasons to believe that any industrial company has become, for the
purposes of this Act, a sick industrial company, make a reference in
respect of such company to the Board for determination of the measures
which may be adopted with respect to such company:
PROVIDED that a
reference shall not be made under this sub-section in respect of any
industrial company by,-
(a) the government
of any State unless all or any of the industrial undertakings belonging
to such company are situated in such State;
(b) a public
financial institution or a State level institution or a scheduled bank
unless it has, by reason of any financial assistance, or obligation
rendered by it, or undertaken by it, with respect to, such company, an
interest in such company.
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(1) The Board may make
such inquiry as it may deem fit for determining whether any industrial
company has become a sick industrial company-
(a) upon receipt of
a reference with respect to such company under section 15; or
(b) upon
information received with respect to such company or upon its own
knowledge as to the financial condition of the company.
(2) The Board may if it
deems necessary or expedient so to do for the expeditious disposal of an
inquiry under sub-section (1), require by order any operating agency to
enquire into and make a report with respect to such matters as may be
specified in the order.
(3) The Board or, as
the case may be, the operating agency shall complete its inquiry as
expeditiously as possible and endeavour shall be made to complete the
inquiry within sixty days from the commencement of the inquiry-
2[Explanation:
For the purposes of this sub-section, an inquiry shall be deemed to have
commenced upon the receipt by the Board of any reference or information
or upon its own knowledge reduced to writing by the Board.]
(4) Where the Board
deems it fit to make an inquiry or to cause an inquiry to be made into
any industrial company under sub-section (1) or, as the case may be,
under sub-section (2), it 5[may] appoint one or more persons
to be a special director or special directors of the company for
safeguarding the financial and- other interests of the company 2[or
in the public interest.]
2[(4A)
The Board may issue such directions to a special director appointed
under sub-section (4) as it may deem necessary or expedient for proper
discharge of his duties.]
(5) The appointment of
a special director referred to in sub-section (4) shall be valid and
effective notwithstanding anything to the contrary contained in the
Companies Act, 1956, or in any other law for the time being in force or
in the memorandum and articles of association or any other instrument
relating to the industrial company, and any provisions regarding share,
qualification, age limit, number of directorships, removal from office
of directors and such like conditions contained in any such law or
instrument aforesaid, shall not apply to any director appointed by the
Board.
(6) Any special
director appointed under sub-section (4) shall-
(a) hold office
during the pleasure of the Board and may be removed or substituted by
any person by order in writing by the Board;
(b) not incur any
obligation or liability by reason only of his being a director or for
anything done or omitted to be done in good faith in the discharge of
his duties as a director or anything in relation thereto;
(c) not be liable
to retirement by rotation and shall not be taken into account for
computing the number of directors liable to such retirement;
2[(d)
not be liable to be prosecuted under any law for anything done or
omitted to be done in good faith in the discharge of his duties in
relation to the sick industrial company.]
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(1) If after making an
inquiry under section 16, the Board is satisfied that a company has
become a sick industrial company, the Board shall, after considering all
the relevant facts and circumstances of the case, decide, as soon as may
be, any order in writing, whether it is practicable for the company to
6[make its net worth exceed the accumulated losses] within a
reasonable time.
(2) If the Board
decides under sub-section (1) that it is practicable for a sick
industrial company to make its net worth exceed the accumulated losses
within a reasonable time, the Board, shall, by order in writing and
subject to such restrictions or conditions as may be specified in the
order, give such time to the company as it may deem fit to 6[make
its net worth exceed the accumulated losses.]
(3) If the Board
decides under sub-section (1) that it is not practicable for a sick
industrial company to 6[make its net worth exceed the
accumulated losses] within a reasonable time and that it is necessary or
expedient in the public interest to adopt all or any of the measures
specified in section 18 in relation to the said company it may, as soon
as may be, by order in writing, direct any operating agency specified in
the order to prepare, having regard to such guidelines as may be
specified in the order, a scheme providing for such measures in relation
to such company.
(4) The Board may-
(a) if any of the
restrictions or conditions specified in an order made under sub-section
(2) are not complied with by the company concerned, 2[or if
the company fails to revive in pursuance of the said order,] review such
order or a reference in that behalf from any agency referred to in
sub-section (2) of section 15 or on its own motion and pass a fresh
order in respect of such company under sub-section (3);
(b) if the
operating agency specified in an order made under sub-section (3) makes
a submission in that behalf, review such order and modify the order in
such manner as it may deem appropriate.
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(1) Where an order is
made under sub-section (3) of section 17 in relation to any sick
industrial company, the operating agency specified in the order shall
prepare, as expeditiously as possible and ordinarily within a period of
ninety days from the date of such order, a scheme with respect to such
company providing for any one or more of the following measures,
namely,-
3[(a)
the financial reconstruction of the sick industrial company;]
(b) the proper
management of the sick industrial company by change in, or take over of,
management of the sick industrial company;
7[(c)
the amalgamation of-
(i) the sick
industrial company with any other company; or
(ii) any other
company with the sick industrial company;]
(hereafter in this section,
in the case of sub-clause (i), the other company, and the case of
sub-clause (ii), the sick industrial company, referred to as "transferee
company");]
(d) the sale or
lease of a part or whole of any industrial undertaking of the sick
industrial company;
7[(da)
the rationalisation of managerial personnel, supervisory staff and
workmen in accordance with law;]
(e) such other
preventive, ameliorative and remedial measures as may be appropriate;
(f)such incidental,
consequential or supplemental measures as may be necessary or expedient
in connection with or for the purpose of the measures specified in
clauses (a) to (e).
(2) The scheme referred
to in sub-section (1) may provide for any one or more of the following,
namely,-
(a) the
constitution, name and registered office, the capital, assets, powers,
rights, interests, authorities and privileges, duties and obligations
for the sick industrial company or, as the case may be, of the 8[transferee
company;]
(b) the transfer to
the 8[transferee company] of the business, properties, assets
and liabilities of the sick industrial company on such terms and
conditions as may be specified in the scheme;
(c) any change in
the Board of Directors, or the appointment of a new Board of Directors,
of the sick industrial company and the authority by whom, the manner in
which and other terms and conditions on which, such change or
appointment shall be made and in the case of appointment of a new Board
of Directors or of any director, the period for which such appointment
shall be made;
(d) the alteration
of the memorandum or articles of association of the sick industrial
company or, as the case may be, of the 8[transferee company]
for the purpose of altering the capital structure thereof or for such
other purposes as may be necessary to give effect to the reconstruction
or amalgamation;
(e) the
continuation by, or against, the sick industrial company or, as the case
may be, the transferee company of any action or other legal proceeding
pending against the sick industrial company immediately before the date
of the order made under sub-section (3) of section 17;
(f) the reduction
of the interest or rights which the shareholders have in the sick
industrial company to such extent as the Board considers necessary in
the interests of the reconstruction, revival or rehabilitation of the
sick industrial company or for the maintenance of the business of the
sick industrial company;
(g) the allotment
to the shareholders of the sick industrial company of shares .in the
sick industrial company or, as the case may be, in the 8[transferee
company] and where any shareholder claims payment in cash and not
allotment of shares, or where it is not possible to allot shares to any
shareholder, the payment of cash to those shareholders in full
satisfaction of their claims-
(i) in respect
of their interest in shares in the sick industrial company before its
reconstruction or amalgamation; or
(ii) where such
interest has been reduced under clause (f) in respect of their interest
in shares as so reduced;
(h) any other terms
and conditions for the reconstruction or amalgamation of the sick
industrial company;
(i) sale of the
industrial undertaking of the sick industrial company free from all
encumbrances and all liabilities of the company or other such
encumbrances and liabilities as may be specified, to any person,
including a co-operative society formed by the employees of such
undertaking and fixing of reserve price for such sale;
(j) lease of the
industrial undertaking of the sick industrial company to any person,
including a co-operative society formed by the employees of such
undertaking;
(k) method of sale
of the assets of the industrial undertaking of the sick industrial
company such as by public auction or by inviting tenders or in any other
manner as may be specified and for the manner of publicity therefor;
(l) transfer or
issue of the shares in the sick industrial company at the face value or
at the intrinsic value which may be at discount value or such other
value as may be specified to any industrial company or any person
including the executives and employees of the sick industrial company;
(m) such
incidental, consequential and supplemental matters as may be necessary
to secure that the reconstruction or amalgamation or other measures
mentioned in the scheme are fully and effectively carried out.
(3) 3[(a)
The scheme prepared by the operating agency shall be examined by the
Board and a copy of the scheme with modification, if any, made by the
Board shall be sent, in draft, to the sick industrial company and the
operating agency and in the case of amalgamation, also to any other
company concerned, and the Board shall publish or cause to be published
the draft scheme in brief in such daily newspapers as the Board may
consider necessary, for suggestions and objections, if any, within such
period as the Board may specify.]
(b) The Board may
make such modifications, if any, in the draft schemes as it may consider
necessary in the light of the suggestions and objections received from
the sick industrial company and the operating agency and also from the
8[transferee company] and any other 9[* * *]
company concerned in the amalgamation and from any shareholder or any
creditors or employees of such 9[* * *] companies:
PROVIDED that where
the scheme relates to amalgamation 10[* * *], the said scheme
shall be laid before the company other than the sick industrial company
in the general meeting for the approval of the scheme by its
shareholders and no such scheme shall be proceeded with unless it has
been approved, with or without modification, by a special resolution
passed by the shareholders of the 8[transferee company.]
(4) The scheme shall
thereafter be sanctioned, as soon as may be, by the Board (hereinafter
referred to as the 'sanctioned scheme') and shall come into force on
such date as the Board may specify in this behalf:
PROVIDED that different
dates may be specified for different provisions of the scheme.
(5) The Board may on
the recommendations of the operating agency or otherwise, review any
sanctioned scheme and make such modifications as it may deem fit or may
by order in writing direct any operating agency specified in the order,
having regard to such guidelines as may be specified in the order, to
prepare a fresh scheme providing for such measures as the operating
agency may consider necessary.
(6) When a fresh scheme
is prepared under sub-section (5), the provisions of sub-sections (3)
and (4) shall apply in relation thereto as they apply to in relation to
a scheme prepared under sub-section (1).
2[(6A)
Where a sanctioned scheme provides for the transfer of any property or
liability of the sick industrial company in favour of any other company
or person or
where such scheme provides
for the transfer of any property or liability of any other company or
person in favour of the sick industrial company, then, by virtue of, and
to the extent provided in, the scheme, on and from the date of coming
into operation of the sanctioned scheme or any provision thereof, the
property shall be transferred to, and vest in, and the liability shall
become the liability of, such other company or person or, as the case
may be, the sick industrial company.]
(7) The sanction
accorded by the Board under sub-section (5) shall be conclusive evidence
that all the requirements of this scheme relating to the reconstruction
or amalgamation, or any other measure specified therein have been
complied with and a copy of the sanctioned scheme certified in writing
by an officer of the Board to be a true copy thereof, shall, in all
legal proceedings (whether in appeal or otherwise) be admitted as
evidence.
3[(8)
On and from the date of the coming into operation of the sanctioned
scheme or any provision thereof, the scheme or such provision shall be
binding on the sick industrial company and the transferee company or, as
the case may be, the other company and also on the shareholders,
creditors and guarantors and employees of the said companies.]
(9) If any difficulty
arises in giving effect to the provisions of the sanctioned scheme the
Board may, on the recommendation of the operating agency 2[or
otherwise], by order do anything, not inconsistent with such provisions,
which appears to it to be necessary or expedient for the purpose of
removing difficulty.
(10) The Board may, if
it deems necessary or expedient so to do, by order in writing direct any
operating agency specified in the order to implement a sanctioned scheme
with such terms and conditions and in relation to such sick industrial
company as may be specified in the order.
(11) 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.
2[(12)
The Board may monitor periodically the implementation of the sanctioned
scheme.]
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(1) Where the scheme
relates to preventive, ameliorative, remedial and other measures with
respect to any sick industrial company, the scheme may provide for
financial assistance by way of loans, advances or guarantees or reliefs
or concessions or sacrifices from the Central Government, a State
Government, any scheduled bank or other bank, a public financial
institution or State level institution or any institution or other
authority (any government, bank, institution or other authority required
by a scheme to provide for such financial assistance being hereafter in
this section referred to as the person required by the scheme to provide
financial assistance) to the sick industrial company.
(2) Every scheme
referred to in sub-section (1) shall be circulated to every person
required by the scheme to provide financial assistance for his consent
within a period of sixty days from the date of such circulation 2[or
within such further period, not exceeding sixty days, as may be allowed
by the Board, and if no consent is received within such period or
further period, it shall be deemed that consent has been given.]
(3) Where in respect of
any scheme the consent referred to in sub-section (2) is given by every
person required by the scheme to provide financial assistance, the Board
may, as soon as may be, sanction the scheme and on and from the date of
such sanction the scheme shall be binding on all concerned.
24[(3A)
On the sanction of the scheme under sub-section (3), the financial
institutions and the banks required to provide financial assistance
shall designate by mutual agreement a financial institution and a bank
from amongst themselves which shall be responsible to disburse financial
assistance by way of loans or advances or guarantees or reliefs or
concessions or sacrifices agreed to be provided or granted under the
scheme on behalf of all financial institutions and banks concerned.
(3B) The financial
institution and the bank designated under sub-section (3A) shall
forthwith proceed to release the financial assistance to the sick
industrial company in fulfilment of the requirement in this regard.]
(4) Where in respect of
any scheme consent under sub-section (2) is not given by any person
required by the scheme to provide financial assistance, the Board may
adopt such other measures, including the winding up of the sick
industrial company, as it may deem fit.
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(1) At any time before
completion of the inquiry under section 16, the sick industrial company
or the Central Government or the Reserve Bank or a State Government or a
public financial institution or a State level institution or a scheduled
bank or any other institution, bank or authority providing or intending
to provide any financial assistance by way of loans or advances or
guarantees or reliefs or concessions to the sick industrial company may
make an application to the Board-
(a) agreeing to an
arrangement for continuing the operations of the sick industrial
company; or
(b) suggesting a
scheme for the financial reconstruction of the sick industrial company.
(2) The Board may,
within sixty days of the receipt of the application under sub-section
(1), pass such orders therein as it may deem fit.]
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25[(1)
Where the Board, after making inquiry under section 16 and after
consideration of all the relevant facts and circumstances and after
giving an opportunity of being heard to all concerned parties, is of
opinion that the sick industrial company is not likely to make its net
worth exceed the accumulated losses within a reasonable time while
meeting all its financial obligations and that the company as a result
thereof is not likely to become viable in future and that it is just and
equitable that the company should be wound up, it may record and forward
its opinion to the concerned High Court.]
(2) The High Court
shall, on the basis of the opinion of the Board, order winding up of the
sick industrial company and may proceed and cause to proceed with the
winding up of the sick industrial company in accordance with the
provisions of the Companies Act, 1956.
(3) For the purpose of
winding up of the sick industrial company, the High Court may appoint
any officer of the operating agency, if the operating agency gives its
consent, as the liquidator of the sick industrial company and the
officer so appointed shall for the purpose of the winding up of the sick
industrial company be deemed to be, and have all the powers of, the
official liquidator, under the Companies Act, 1956.
(4) Notwithstanding
anything contained in sub-section (2) or sub-section (3), the Board may
cause to be sold the assets of the sick industrial company in such
manner as it may deem fit and forward the sale proceeds to the High
Court for orders for distribution in accordance with the provisions of
section 529A, and other provisions of the Companies Act, 1956.
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Where 11[for the
proper discharge of the functions of the Board under this Act] the
circumstances so require, the Board may, through any operating agency,
cause to be prepared-
(a) with respect to
12[a company], a complete inventory of-
(i) all assets and
liabilities of whatever nature;
(ii) all books of
account, registers, maps, plans, records, documents of title or
ownership of property and all other documents of whatever nature
relating thereto;
(b) a list of
shareholders and list of creditors showing separately in the list of
creditors, the secured creditors and the unsecured creditors;
(c) a valuation report
in respect of the shares and assets in order to arrive at the reserve
price for the sale of a part or whole of the industrial undertaking of
the company or for fixation of the lease rent or share exchange ratio;
(d) an estimate of
reserve price, lease rent or share exchange ratio; and
(e) proforma accounts,
where no up to date audited accounts are available.
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(1) Where in respect of
an industrial company, an inquiry under section 16 is pending or any
scheme referred to under section 17 is under preparation or
consideration or a sanctioned scheme is under implementation or where an
appeal under section 25 relating to an industrial company is pending,
then, notwithstanding anything contained in the Companies Act, 1956, or
any other law or the memorandum and articles of association of the
industrial company or any other instrument having effect under the said
Act or other law, no proceedings for the winding up of the industrial
company or for execution, distress or the like against any of the
properties of the industrial company or for the appointment of a
receiver in respect thereof 2[and no suit for the recovery of
money or for the enforcement of any security against the industrial
company or of any guarantee in respect of any loans or advance granted
to the industrial company] shall lie or be proceeded with further,
except with the consent of the Board or, as the case may be, the
appellate authority.
(2) Where the
management of the sick industrial company is taken over or changed
2[in pursuance of any scheme sanctioned under section 181,
notwithstanding anything contained in the Companies Act, 1956, or any
other law or in the memorandum and articles of association of such
company or any instrument having effect under the said Act or other law-
(a) it shall not be
lawful for the shareholders of such company or any other person to
nominate or appoint any person to be a director of the company;
(b) no resolution
passed at any meeting of the shareholders of such company shall be given
effect to unless approved by the Board.
(3) 13[Where
an inquiry under section 16 is pending or any scheme referred to in
section 17 is under preparation or during the period] of consideration
of any scheme under section 18 or where any such scheme is sanctioned
thereunder, for due implementation of the scheme, the Board may by order
declare with respect to the sick industrial company concerned that the
operation of all or any of the contracts, assurances of property,
agreements, settlements, awards, standing orders or other instruments in
force, to which such sick industrial company is a party or which may be
applicable to such sick industrial company immediately before the date
of such order, shall remain suspended or that all or any of the rights,
privileges, obligations and liabilities accruing or arising thereunder
before the said date, shall remain suspended or shall be enforceable
with such adaptations and in such manner as may be specified by the
Board :
PROVIDED that such
declaration shall not be made for a period exceeding two years which may
be extended by one year at a time so, however, that the total period
shall not exceed seven years in the aggregate.
(4) Any declaration
made under sub-section (3) with respect to a sick industrial company
shall have effect notwithstanding anything contained in the Companies
Act, 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 authority or of any submission, settlement or standing
order and accordingly-
(a) any remedy for
the enforcement of any right, privilege, obligation and liability
suspended or modified by such declaration, and all proceedings relating
thereto pending before any court, Tribunal, officer or other authority
shall remain stayed or be continued subject to such declaration; and
(b) on the
declaration ceasing to have effect-
(i) any right,
privilege, obligation or liability so remaining suspended or modified,
shall become revived and enforceable as if the declaration had never
been made; and
(ii) any
proceeding so remaining stayed shall be proceeded with, subject to the
provisions of any law which may then be in force, from the stage which
had been reached when the proceedings became stayed.
(5) In computing the
period of limitation for the enforcement of any right, privilege,
obligation or liability, the period during which it or the remedy for
the enforcement thereof remains suspended under this section shall be
excluded.
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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-
(a) during the period
of preparation or consideration of the scheme under section 18; and
(b) during the period
beginning with the recording of opinion by the Board for winding up of
the company under sub-section (1) of section 20 and up to commencement
of the proceeding relating to the winding up before the concerned High
Court.]
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CHAPTER IV: PROCEEDINGS IN
CASE OF POTENTIALLY SICK INDUSTRIAL COMPANIES, MISFEASANCE PROCEEDINGS,
APPEALS AND MISCELLANEOUS
(1) If the accumulated
losses of an industrial company, as at the end of any financial year
(hereinafter referred to as the relevant financial year) have resulted
in erosion of fifty per cent, or more of its peak net worth during the
immediately 14[preceding four financial years],-
(a) the company
shall, within a period of sixty days from the date (hereinafter referred
to as the relevant date) of finalisation of the duly audited accounts of
the company of the relevant financial year-
(i) report the
fact of such erosion to the Board; and
(ii) hold a
general meeting of the shareholders of the company for considering such
erosion;
(b) the Board of
Directors shall, at least twenty-one days before the date on which the
meeting under sub-clause (ii) of clause (a) is held, forward to every
member of the company a report as to such erosion and the causes for
such erosion;
(c) the company
may, by ordinary resolution passed at the meeting held under clause (a)
remove a director (being a director appointed by the members of the
company) and fill the vacancy created by such removal, so far as may be,
in accordance with the procedure provided in sub-sections (2) to (6) of
section 284 of the Companies Act, 1956.
(2) A direct or removed
under sub-section (1) shall not be entitled to any compensation or
damages for termination of his appointment as director or of any
appointment terminating with that as director.
(3) If default is made
in complying with the provisions of this section, every director or
other officer of the company who is in default shall be punishable with
imprisonment which shall not be less than six months but which may
extend to two years and with fine.
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(1) Without prejudice
to the provisions of clause (a) of sub-section (1) of section 23, the
Central Government or the Reserve Bank or a State Government or a public
financial institution or a state level institution or a scheduled bank
may, if it has sufficient reasons to believe that the accumulated losses
of any industrial company have resulted in erosion of fifty per cent, or
more of its peak net worth during the immediately preceding four
financial years, report the fact of such erosion to the Board.
(2) If the Board has,
upon information received or upon its own knowledge, reason to believe
that the accumulated losses of any industrial company have resulted in
erosion of fifty per cent or more of its peak net worth during the
immediately preceding four financial years, it may call for such
information from the company as it may deem fit.
(3) Where the Board is
of the opinion that an industrial company referred to in sub-section (1)
is not likely to make its net worth exceed its accumulated losses within
a reasonable time while meeting all its financial obligations and that
the company as a result thereof is not likely to become viable in
future, it may require by order an operating agency to inquire into and
make a report with respect to such matters as may be specified in the
order.
(4) After consideration
of the report of the operating agency the Board may publish or cause to
be published a notice in such daily newspapers as the Board may consider
necessary, for suggestions and objections, if any, within such period as
the Board may specify, as to why the company should not be wound up.
(5) Where the Board,
after consideration of the relevant facts and circumstances and after
giving an opportunity of being heard to all concerned parties, is of the
opinion that the industrial company is not likely to make its net worth
exceed the accumulated losses within a reasonable time while meeting all
its financial obligations and that the company as a result thereof, is
not likely to become viable in future and that it is just and equitable
that the company should be wound up, the Board may record and forward
its opinion to the concerned High Court in rotation to the company as if
it were a sick industrial company and the provisions of sub-sections
(2), (3) and. (4) of section 20 shall apply accordingly.
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On receipt of a report
under sub-clause (i) of clause (a) of sub-section (1) of section 23 or
under sub-section (1) of section 23A or upon information or its own
knowledge under sub-section (2) of section 23A, the Board may call for
any periodic information from the company as to the steps taken by the
company to make its net worth exceed the accumulated losses and the
company shall furnish such information.]
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(1) If, in the course
of scrutiny or implementation of any scheme or proposal, it appears to
the Board that any person who has taken part in the promotion, formation
or management of sick industrial company or its undertaking, including
any past or present director, manager or officer or employee of the sick
industrial company-
(a) has misapplied
or retained, or become liable or accountable for, any money or property
of the sick industrial company; or
(b) has been guilty
of any misfeasance, malfeasance or non-feasance or breach of trust in
relation to the sick industrial company,
the Board may, by order,
direct him to repay or restore the money or property or any part
thereof, with or without interest, as it thinks just, or to contribute
such sum to the assets of the sick industrial company or the other
person entitled thereto by way of compensation in respect of the
misapplication, retainer, misfeasance or breach of trust, as the Board
thinks just, and also report the matter to the Central Government for
any other action which that government may deem fit.
(2) If the Board is
satisfied on the basis of information and evidence in its possession
with respect to any person who is or was a director or an officer or
other employee of the sick industrial company, that such person by
himself or along with others had diverted the funds or other property of
such company for any purpose other than a bona fide purpose of the
company or had managed the affairs of the company in a manner highly
detrimental to the interests of the company, the Board shall, by order,
direct the public financial institutions, scheduled banks and State
level institutions not to provide, during a period of ten years, from
the date of the order, any financial assistance to such person or any
firm of which person is a partner or any company or other body corporate
of which such person is a director (by whatever name called).
(3) No order shall be
made by the Board under this section against any person unless such
person has been given an opportunity for making his submissions.
(4) This section shall
apply notwithstanding that the matter is one for which the person may be
criminally liable.
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(1) Any person
aggrieved by an order of the Board made under this Act may, within
forty-five days from the date on which a copy of the order is issued to
him, prefer an appeal to the appellate authority:
PROVIDED that the
appellate authority may entertain any appeal after the said period of
forty-five days but not after sixty days from the date aforesaid if it
is satisfied that the appellant was prevented by sufficient cause from
filing the appeal in time.
(2) On receipt of an
appeal under sub-section (1), the appellate authority may, after giving
an opportunity to the appellant to be heard, if he so desires, and after
making such further inquiry as it deems fit, confirm, modify or set
aside the order. appealed against 2[or remand the matter to
the Board for fresh consideration.]
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No order passed or proposal
made under this Act shall be appealable except as provided therein and
no civil court shall have jurisdiction in respect of any matter which
the appellate authority or the Board is empowered by, or under this Act
to determine and no injunction shall be granted by any court or other
authority in respect of any action taken or to be taken in pursuance of
any power conferred by or under this Act.
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The Board may, by general
or special order, delegate, subject to such conditions and limitations,
if any, as may be specified in the order, to any member or Secretary or
other officer or employee of the Board or other person authorised by the
Board to manage any industrial company or industrial undertaking or any
operating agency, such powers and duties except the powers and duties
under sub-sections (2) and (4) of section 16, section 17, sub-sections
(3) and (4) of section 19, sub-sections (1) and (4) of section 20,
sub-section (3) of section 22 and section 24 under this Act as it may
deem necessary.
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(1) The Board shall
furnish from time to time to the Central Government such returns as the
Central Government may require.
(2) The Board may, for
the purpose of efficient discharge of its functions under this Act,
collect from, or furnish to-
(a) the Central
Government,
(b) the Reserve
Bank,
(c) the scheduled
bank or any other bank,
(d) the public
financial institution, 15[* * *]
(e) the State-level
institution, 2[or
(f) the sick
industrial company and in case of amalgamation, the other company,]
such information as it may
consider useful for the purpose in such manner and within such time as
it may think fit.
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(1) The Board or any
operating agency, on being directed by the board, may, in order to take
into custody or under its control all property, effects and actionable
claims to which a sick industrial company is or appears to be entitled,
request, in writing, the Chief Metropolitan Magistrate or the District
Magistrate within whose jurisdiction any property, books of account or
any other documents of such sick industrial company be situate or be
found, to take possession thereof, and the Chief Metropolitan Magistrate
or the District Magistrate, as the case may be, shall, on such request
being made to him-
(i) take possession
of such property, books of accounts or other documents; and
(ii) cause the same
to be entrusted to the Board or the operating agency.
(2) For the purpose of
securing compliance with the provisions of sub-section (1), the Chief
Metropolitan Magistrate or the District Magistrate may take or cause to
be taken such steps and use or cause to be used such force as may, in
his opinion, be necessary.
(3) No act of the Chief
Metropolitan Magistrate or the District Magistrate done in pursuance of
this section shall be called in question in any court or before any
authority on any ground whatsoever.
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No suit or other legal
proceeding shall lie against the Board or the appellate authority, or
the Chairman or any other member, officer or other employee of the Board
or the appellate authority, or operating agency or any other person
authorised by the Board or the appellate authority to discharge any
function under this Act for any loss or damage caused or likely to be
caused by any action which is in good faith done or intended to be done
in pursuance of this Act.
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Where a receiver or an
official liquidator has been appointed in any proceeding pending
immediately before the commencement of this Act, in any High Court for
winding up of an industrial company such proceeding shall not abate but
continue in that High Court 2[and no proceeding in respect of
such industrial company shall lie or be proceeded with further before
the Board.]
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(1) The provisions of
this Act and of any rules or schemes made thereunder shall have effect
notwithstanding anything inconsistent therewith contained in any other
law except the provisions of the Foreign Exchange Regulation Act, 1973
(46 of 1973) and the Urban land (Ceiling and Regulation) Act, 1976 (33
of 1976) for the time being in force or in the Memorandum or Articles of
Association of an industrial company or in any other instrument having
effect by virtue of any law other than this Act.
(2) 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 Income-tax Act, 1961 (43 of 1961) shall, subject to the
modifications that the power of the Central Government under that
section may be exercised by the Board without any recommendation by the
specified authority referred to in that section, apply in relation to
such amalgamation as they apply in relation to the amalgamation of a
company owning an industrial undertaking with another company.
16[*
* * ]
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(1) Whoever violates
the provisions of this Act or any scheme, or any order of the Board, or
the appellate authority and whoever makes a false statement or gives
false evidence to the Board or the appellate authority, shall be
punishable with simple imprisonment for a term which may extend to three
years and shall also be liable to fine.
(2) No court shall take
cognisance of any offence under sub-section (1) except on a complaint in
writing of the Secretary or any such other officer of the Board or the
appellate authority or any such officer of an operating agency as may be
authorised in this behalf by the Board or the appellate authority.
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(1) Where any offence,
punishable under this Act has been committed by a company, every person
who, at the time the offence was committed was in charge of, and was
responsible to the company for the conduct of the business of the
company, as well as the company, shall be deemed to be guilty of the
offence and shall be liable to be proceeded against and punished
accordingly:
PROVIDED that nothing
contained in this sub-section shall render any such person liable to any
punishment, if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the
commission of such offence.
(2) Notwithstanding
anything contained in sub-section (1), where any offence punishable
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager,
secretary or other officer of the company, such director, manager,
secretary or other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished
accordingly.
Explanation
: For the purposes of this section-
(a) "company" means
any body corporate and includes a firm or other association of
individuals; and
(b) "director" in
relation to a firm, means a partner in the firm.
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If any difficulty arises in
giving effect to the provisions of this Act or the rules, schemes or
orders made thereunder, the Central Government may, by notification,
remove the difficulty:
PROVIDED that no such
notification shall be made by the Central Government after the expiry of
a period of three years from the date on which this Act receives the
assent of the President.
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(1) The Central
Government may, by notification, make rules for carrying out the
provisions of this Act.
(2) In particular and
without prejudice to the generality of the foregoing power, such rules
may provide for all or any of the following matters, namely-
(a) the salaries
and allowances payable to and other terms and conditions of service of
the Chairman and other members under sub-section (7) of section 6;
(b) the powers
which may be exercised and the duties which may be performed by the
Secretary to the Board or the appellate authority under sub-section (1)
of section 8;
(c) the
restrictions and conditions subject to which officers and employees may
be appointed to the Board or the appellate authority under sub-section
(2) of section 8;
(d) the salaries
and allowances and other conditions of service of the Secretary and
other officers and employees of the Board or the appellate authority
under sub-section (3) of section 8;
(e) the additional
matters referred to in sub-section (3) of section 13;.
(f) any other
matter which is required to be, or may be, prescribed.
(3) Every rule made
under this Act shall be laid, as soon as may be, after it is made before
each House of Parliament, while it is in session, for a total period of
thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the rule or both. Houses
agree that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may be
so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule.
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[Sections 6(8) and 8(3)]
I,
..........................., do hereby declare that I will faithfully,
truly and to the best of my skills and ability, execute and perform the
duties required of me as the Chairman/ Member/ Secretary/ other officer
or employee of the Board for the Industrial and Financial
Reconstruction/ the Appellate Authority for the Industrial and Financial
Reconstruction and which properly relate to the office or position held
by me in or in relation to the said Board/ Appellate Authority.
I further declare that I
will not communicate or allow to be communicated to any person not
legally entitled thereto any information relating to the affairs of the
Board/ Appellate Authority, nor will I allow any such person to inspect
or have access to any books or documents belonging to or in possession
of the Board/ Appellate Authority or the business of any person having
any dealing with the said Board/ Appellate Authority.
Signed before me
Signature
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Foot Notes
1 The words and figures,
"but does not include a government company as defined in s. 617 of that
Act" omitted by Act No. 57 of 1991.
2 Inserted by Act No. 12 of
1994.
3 Substituted by Act No. 12
of 1994.
4 Sections 15 to 34 came
into force w.e.f. 15th. May, 1987, vide Notification No. So. 444(E),
dated 28th. April, 1987.
5 Substituted for the word
"shall" by Act No. 12 of 1994.
6 Substituted for the words
"make its net worth positive" by Act No. 12 of 1994.
7 Clause (c) substituted by
Act No. 12 of 1994.
8 Substituted for the words
"transferee industrial company" by Act No. 12 of 1994.
9 The word "industrial"
omitted by Act No. 12 of 1994.
20 The words "of the sick
industrial company" omitted by Act No. 12 of 1994.
11 Substituted by Act No.
12 of 1994, for the words "in relation to an inquiry or scheme".
12 Substituted for the
words "an industrial company" by Act No. 12 of 1994.
13 Substituted for the
words "during the period" by Act No. 12 of 1994.
14 Substituted for the
words "preceding five financial years" by Act No. 12 of 1994.
15 The word "or" omitted by
Act No. 12 of 1994.
16 Omitted by Act No. 12 of
1994.
