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Jan 8, 1986 · 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 ...
- What Is The Sick Industrial Companies Act (Sica)?
- Understanding The Sick Industrial Companies Act
- Causes of Industrial Sickness
- Industrial Sickness and The Economy
- Sica Legislation and Provisions
- Repeal of The Sick Industrial Companies Act
The Sick Industrial Companies Act of 1985 (SICA) was a key piece of legislation dealing with the issue of rampant industrial sickness in India. The Sick Industrial Companies Act (SICA) was enacted in India to detect unviable ("sick") or potentially sick companies and to help with their revival, if possible, or their closure, if not. This measure wa...
The Sick Industrial Companies Act (SICA) was enacted in 1985 to address a chronic problem in the Indian economy: industrial sickness. The act defined a sick industrial unit as one that had existed for at least five years and had incurred accumulated losses equal to or exceeding its entire net worth at the end of any financial year.
The Sick Industrial Companies Act (SICA) identified a number of internal and external factors responsible for this epidemic. Internal factors within the organizations included mismanagement, overestimation of demand, wrong location, poor project implementation, unwarranted expansion, personal extravagance, failure to modernize and poor labor-manage...
Widespread industrial sickness impacts the economy in a number of ways. It can result in loss of government revenue, tying up scarce resources in sick units, increasing non-performing assets held by banks and financial institutions, increasing unemployment, loss of production and poor productivity. SICA was implemented to rectify these adverse soci...
An important SICA provision was establishing two quasi-judicial bodies–the Board for Industrial and Financial Reconstruction (BIFR), and the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). BIFR was set up as an apex board to spearhead handling the industrial sickness issue, including reviving and rehabilitating potentially ...
SICA was repealed and replaced by the Sick Industrial Companies (Special Provisions) Repeal Act of 2003, which diluted some SICA provisions and plugged certain loopholes. A key change in the new act was that apart from combating industrial sickness, it aimed to reduce its growing incidence by ensuring that companies did not resort to a sickness dec...
ACT NO. 1 OF 2004. [1st January, 2004.] An Act to repeal the Sick Industrial Companies (Special Provisions) Act, 1985. BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— Short title and commencement.—(1) This Act may be called the Sick Industrial Companies (Special Provisions) Repeal Act, 2003.
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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 experts of the preventive, ameliorative, remedial and other measures which need to be taken with respect to such companies and the ex...
Mar 2, 2023 · The Committee in its report titled “Report of High-Level Committee on Law Relating to Insolvency and Winding Up of Companies” suggested the SICA act be repealed, and relevant provisions should be amended into the Companies Act, 1956.
- Rachit Garg
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 ...
Jul 30, 2020 · The Companies (Second Amendment) Act, 2002 was introduced to provide for revival and rehabilitation of sick companies. The amendment act, 2002 sought to replace the two-tiered mechanism of BIFR and Appellate Authority for Industrial and Financial Reconstruction (AAIFR) in SICA with NCLT and NCLAT. However, the said amendments were not notified.
