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Revival and Restructuring of Sick Companies

Industrial sickness is defined as “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 and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year”.[1] One of the adverse trends observable in the corporate private sector of India is the growing incidence of sickness. It is causing considerable concern to planners and policymakers. It is also putting a severe strain on the economic system, particularly on the banks.[2]

Industrial sickness creates various socio-eco­nomic problems. When an industrial unit falls sick those who depend on it have to face an uncertain future. They fear loss of jobs. Even if they do not lose jobs they do not get their wages and compen­sation in time and are, thus, forced to live in ex­treme hardship.[3]

Of course, sickness is not a special problem of India. It is, undoubtedly, a global phenomenon. Even in industrially advanced countries there are numerous cases of bankruptcy or liquidation. These sick units are nursed back to health through merg­ers, amalgamations, takeovers, purchase of assets, or outright nationalization. When the-problem becomes really alarming or unmanageable, the unit is permitted to die its natural death.[4]

In the present project, I would like to focus on the meaning, nature and scope of the phenomenon of sickness in the industries along with the probable causes of sickness in the industries. Another chapter will deal with the Indian position regarding sick industries where I have tried to collect available data to analyze statistics of sick industries. Further we will discuss all the available legislations, starting from the past, which have dealt with the sickness of industries in India and what is the present status of legal governance regarding it.

Research Methodology
Statement of Problem:

The project mainly focuses on the Indian legislative framework and does not deal with the International Scenario. It begins with the explanation of the subject and then takes a tour through all the past legislations regarding sick industries to the present legislations. The scope of the project lies in tracing the past or history of the Industrial sickness laws in India along with a deep analysis of the present and available laws.

Objectives:
  1. To analyze and trace available statutory law and Governmental Guidelines, with a view to find law regarding Sickness of Companies
  2. To check the consistency and certainty of law.
  3. To look into the purpose and policy of law that exists.
  4. To study the related legal institutions.
Hypothesis:
The Indian Legal Framework has gone through various amendments regarding the regulation of Sick Industries. These changes have created quite turmoil and has resulted into a bulk of legislations. But in the recent years a new and uniform law has been enacted by the Parliament which has rendered all the past statutes as repealed. The new Code aims to be a cogent, sufficient and efficient single legislation for the regulation of Sick Industries

Research Questions:
  • Whether there is adequate and effective law in India to regulate Sickness of Industries?
Research Methodology
  • The present research work is a Descriptive and Analytical Research; and
  • It is Doctrinal in nature and;
  • It is a Mono-disciplinary Legal Research.
  • The research design is Exploratory and Descriptive.
  • The sources of information are both Secondary (Articles, Books, Journals, Websites etc.) and Primary (Statutes, International Instruments, and Government Statistics and reports etc.)
Sickness of Company
Meaning of Sickness:

There are various crite­ria of sickness. According to the criteria accepted by the Reserve Bank of India “a sick unit is one which has reported cash loss for the year of its operation and in the judgment of the financing bank is likely to incur cash loss for the current year as also in the following year and the unit has an imbalance in its financial structure, such as, current ratio is less than 1: 1 and there is worsening trend in debt-equity ratio.” [5]

The State Bank of India has defined a sick unit as one “which fails to generate an internal surplus on a continuous basis and depends for its survival upon frequent infusion of funds.”[6]
However, prior to the enactment of Sick Industrial Companies Act[7], there was no agreement on the criteria to be used to describe an industrial unit as sick. According to SICA, as amended in 1992, “an industrial company can be declared as sick which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth”. It may be noted that Sick Industrial Companies Act (SICA) applies to registered companies which have been in existence for at least 5 years.

Simply put, a sick unit is one which is unable to support itself through the operation of internal resources. As a gen­eral rule, the sick units continue to operate below the break-even point i.e. at which total revenue = total cost and are, thus, forced to depend on exter­nal sources for funds of their long-term survival.[8]

In case of small scale industrial unit i.e. SSI, it is regarded as a sick unit if it has:
  1. Incurred a cash loss in the previous accounting year and was likely to continue with losses in the current accounting year and further its cumulative cash losses are equal to 50 per cent or more of its peak net worth during the last five years and,
  2. It has defaulted in meeting four consecutive installments of interest.

According to the Development Commissioner[9], a small scale industrial unit becomes sick if it’s:
  1. Capacity utilization is less than 50 per cent of the highest achieved during the preceding five years,
  2. Net worth has been eroded by more than 50 per cent; and,
  3. The unit has remained closed for a period more than six months.
On the basis of the above definitions of a sick industrial unit, it emerges that the symptoms of the sickness of an industrial unit manifest themselves in the form of unbalanced financial structure, erosion of more than 50 per cent of its net worth, absence of the generation of internal surplus, under- utilization of capacity and survival of the unit upon frequent infusion of funds.

Nature of Sickness:
Sickness in an industry can be classified into:
  1. Genuine sickness,
    which is beyond the control of the promoters of the concern despite the sincere efforts by them,
  2. Incipient sickness,
    due to basic non-viability of the project, and
  3. Induced sickness,
    which is due to the managerial incompetence and wrong policies pursued deliberately for want of genuine stake.
The causes of sickness are both internal and external, often operating in combination. External factors are government policies on pricing, duties, taxes, high interest rates, taxes on profit, slackness in demand, sluggishness in export markets, high labor cost, inadequate availability of inputs, lack of infrastructure and the like.[10]

The internal factors which contribute to sickness are wrong planning in relation to location, technology, capital cost, technological obsolescence, management deficiencies and industrial unrest. We explain below these external and internal factors in some detail. [11]

Causes of Sickness of a Company:
Internal causes for sickness:
We can say pertaining to the factors which are within the control of management. This sickness arises due to internal disorder in the areas justified as following:[12]
  1. Lack of Finance:
    This including weak equity base, poor utilization of assets, inefficient working capital management, absence of costing & pricing, absence of planning and budgeting and inappropriate utilization or diversion of funds
     
  2. Bad Production Policies:
    Another very important reason for sickness is wrong selection of site which is related to production, inappropriate plant & machinery, bad maintenance of Plant & Machinery, lack of quality control, lack of standard research & development and so on.
     
  3. Marketing and Sickness:
    This is another part which always affects the health of any sector as well as SSI. This including wrong demand forecasting, selection of inappropriate product mix, absence of product planning, wrong market research methods, and bad sales promotions.
     
  4. Inappropriate Personnel Management:
    Other internal reasons for the sickness of SSIs are inappropriate management policies, which includes bad wages and salary administration, bad labor relations, lack of behavioral approach causes dissatisfaction among the employees and workers.
     
  5. Ineffective Corporate Management:
    Another reason for the sickness of SSIs is ineffective or bad corporate management, which includes improper corporate planning, lack of integrity in top management, lack of coordination and control etc.

External causes for sickness:
This sickness arises due to external disorder in the areas justified as follows:[13]
  1. Personnel Constraint:
    The first for most important reason for the sickness of small scale industries are non-availability of skilled labor or manpower wages disparity in similar industry and general labor invested in the area
     
  2. Marketing Constraints:
    The second cause for the sickness is related to marketing. The sickness arrives due to liberal licensing policies, restrain of purchase by bulk purchasers, changes in global marketing scenario, excessive tax policies by govt. and market recession.
     
  3. Production Constraints:
    This is another reason for the sickness which comes under external cause of sickness. This arises due to shortage of raw material, shortage of power, fuel and high prices, import-export restrictions.
     
  4. Finance Constraints:
    Another external cause for the sickness of SSIs is lack of finance. This arises due to credit restrains policy, delay in disbursement of loan by govt., unfavorable investments, fear of nationalization.

Position Industrial Sickness In India
Industrial sickness specially in small-scale Industry has been always a demerit for the Indian economy, because more and more industries like – cotton, Jute, Sugar, Textiles small steel and engineering industries are being affected by this sickness problem.

There is sickness of industries both in the large-scale sector i. e., Non- SSI sector and in the small-scale industries i.e. SSI. Growing incidence of sickness has been one of the pressing problems faced by the industrial sector in India. Substantial amounts of banking funds are locked up in these sick industrial units.

As per an estimate 300 units in the medium and large scale sector were either closed or were on the stage of closing in the year 1976. About 10% of 4 lakh unit were also reported to be ailing. And this position also remains same in the next decades. At the end of year 1986, the member of sick units in the portfolio of scheduled commercial banks stood at 1.47,740 involving an outstanding bank credit of Rs. 4874 crores.[14]

There was a problem of increasing industrial sickness even before the new policy of liberalization and globalization adopted in 1991. Thus the number of SSI sick units increased from 58,551 in 1982, rose to 2.21 lakhs in March 1991 and to 2.52 lakhs in end-March 2001. Table 38.1 gives the number of sick industrial units both in the small scale industrial sector and non-small scale industrial and the outstanding bank credit locked in them.

The data reveal that as on March 31, 2001, 3,317 non-SSI sick industrial units accounted for an outstanding bank credit of Rs.21, 270 crores. Industry-wise data show that five industries, namely, textiles, engineering, electrical, chemicals and iron and steel accounted for about 56 per cent of total outstanding bank credit.

There has been a phenomenal rise of industrial sickness over the last few years. It is significant to note that sickness has been growing faster in the small-scale sector than in large and medium- scale sectors. At the end of March 2001, there were 252,947 sick units. Out of these, 249,630 were small-scale sick units against whom outstanding bank credit was Rs. 4,506 crores.[15]

Indian Legislations on Revival of Companies
Restructuring or Revival is a type of corporate action taken when significantly modifying the debt, operations or structure of a company as a means of potentially eliminating financial harm and improving the business. When a company is having trouble making payments on its debt, it will often consolidate and adjust the terms of the debt in a debt restructuring, creating a way to pay off bond holders. A company restructures its operations or structure by cutting costs, such as payroll, or reducing its size through the sale of assets.[16]

Concessions:
The Government pro­vided certain concessions to assist revival of sick units without direct intervention. For example, the Government has amended the Income-tax Act[17] in 1971 by addition of Section 72A by which tax benefit can be given to healthy units when they take over the sick units by amalgamation, with a view to reviving them. [18]

The tax benefit is in the form of carry forward of the accumulated business losses and un-provided depreciation of the sick companies by the healthy companies after amal­gamation. A scheme for provisions of margin money to sick units in the small-scale sector at soft terms to enable them to obtain necessary funds from banks and financial institutions to implement their revival scheme has been introduced from January 1, 1982. [19]

Moreover, financial assistance in the form of long-term equity up to Rs. 15 lakh to units with a project cost not exceeding Rs. 10 lakhs at a nomi­nal service charge of 1% is available to poten­tially viable sick SSI from the National Equity Fund.[20]

The Sick Industrial Companies Act, 1985:
During the period of 70s and 80s, a number of companies were facing financial problems and became sick. The steps taken for their revival proved ineffective due to complexity and multiplicity of laws. Even where management was taken over by government, they could not be revived and thus were forced to wound up. [21]

Thus there was a need for a law, which can timely detect the sickness and take appropriate corrective measures. To provide for this, Sick Industrial Companies (special provision) act, 1985 i.e. SICA was enacted. SICA has the overriding effect over all the existing laws, so that whenever an industrial co becomes a sick, it need not comply with number of laws and compliance of SICA will be sufficient. [22]

SICA provided for establishment of:
  1. Board for industrial and financial reconstruction (BIFR) and
  2. Appellate authority for industrial and financial reconstruction (AAIFR)[23]

1. Establishment of BIFR:
  1. The role of the Board for Industrial and Fi­nancial Reconstruction needs a re-look in the face of a steep rise in the number of industries turning sick. BIFR was constituted to facilitate the revival of industries deemed sick. When an industry turns sick, BIFR acts as an operating agency to devise a revival strategy proposal.
     
  2. Progress in the right disposal of sick com­pany cases registered with BIFR has been slow on account of the conflicting interests between the companies and the creditors and cer­tain lacunae in the SIC Act. The rehabilitation schemes met with 40-45% failure, as a result of which many of the cases had to be reopened.[24]

2. Establishment of IRBI:
  1. The Industrial Reconstruction Bank of India (IRBI) set up in 1985 has initiated various steps for checking the growth of industrial sickness and helping in industrial revival. From April 1997 the name of IRBI has been changed to Industrial Investment Bank of India (IIBI).
     
  2. A significant measure taken during 1986 was the setting up of Small Industries Development Fund (SIDF) in the IDBI. This is meant to provide special financial assistance to the small-scale sec­tor. The Fund would be used for providing refi­nancing assistance not only for development, ex­pansion and modernization, but also for the reha­bilitation of the small-scale sick industries.[25]
     
  3. Modernization Fund:
    The Government has set up two funds, namely the Textile Modernization Fund and the Jute Modernization Fund, for modernization of the textiles and jute sector.

The Companies Act, 2013:
Chapter XIX of the 2013 Act lays down the provisions for the revival and rehabilitation of sick companies and aims to propose the omission of the SICA, though it never came into force. 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. [26]

Although it aims to provide comprehensive provisions for the revival and rehabilitation of sick companies, the fact that several provisions such as particulars, documents as well as content of the draft scheme in respect of application for revival and rehabilitation, etc. have been left to substantive enactment, leaves scope for interpretation.[27]

The coverage of Sick Industrial Companies Act, 1985 (SICA) is limited to only industrial companies, while the 2013 Act covers the revival and rehabilitation of all companies, irrespective of their sector.

The 2013 Act does not recognize the role of all stakeholders in the revival and rehabilitation of a sick company, and provisions predominantly revolve around secured creditors. The fact that the 2013 Act recognizes the presence of unsecured creditors is felt only at the time of the approval of the scheme of revival and rehabilitation. In accordance with the requirement of section 253 of the 2013 Act, a company is assessed to be sick on a demand by the secured creditors of a company representing 50% or more of its outstanding amount of debt under the following circumstances:
  1. The company has failed to pay the debt within a period of 30 days of the service of the notice of demand
  2. The company has failed to secure or compound the debt to the reasonable satisfaction of the creditors
To speed up the revival and rehabilitation process, the 2013 Act provides a one year time period for the finalization of the rehabilitation plan.

Overview of the process:
In response to the application made by either the secured creditor or by the company itself, if the Tribunal is satisfied that a company has become a sick company, it shall give time to the company to settle its outstanding debts if Tribunal believes that it is practical for the company to make the repayment of its debts within a reasonable period of time.

Once a company is assessed to be a sick company, an application could be made to the Tribunal under section 254[28] of the 2013

Act for the determination of the measures that may be adopted with respect to the revival and rehabilitation of the identified sick company either by a secured creditor of that company or by the company itself. The application thus made must be accompanied by audited financial statements of the company relating to the immediately preceding financial year, a draft scheme of revival and rehabilitation of the company, and with such other document as may be prescribed.

Subsequent to the receipt of the application, for the purpose of revival and rehabilitation, the Tribunal, not later than seven would be required to fix a date for hearing and would be appointing an interim administrator under Section 256 of 2013 Act to convene a meeting of creditors of the company in accordance with the provisions of section 257[29] of the 2013 Act. In certain circumstances, the Tribunal may appoint an interim administrator as the company administrator to perform such functions as the Tribunal may direct.

The administrator thus appointed would be required to prepare a report specifying the measures for revival and rehabilitation of the identified sick industry.

The measures that have been identified under the section 261[30] of the 2013 Act for the purpose of revival and rehabilitation of a sick company.

Section 261 provides for the following options:
  1. Financial reconstruction
  2. Change in or takeover of the management
  3. Amalgamation of the sick company with any other company, or another company’s amalgamation with the sick company
The scheme thus prepared, will need to be approved by the secured and unsecured creditors representing three-fourth and one-fourth of the total representation in amounts outstanding respectively, before submission to the Tribunal for sanctioning the scheme pursuant to the requirement of section 262[31] of the 2013 Act. The Tribunal, after examining the scheme will give its approval with or without any modification. The scheme, thus approved will be communicated to the sick company and the company administrator, and in the case of amalgamation, also to any other company concerned.

The sanction accorded by the Tribunal will be construed as conclusive evidence that all the requirements of the scheme relating to the reconstruction or amalgamation or any other measure specified therein have been complied with. A copy of the sanctioned scheme will be filed with the ROC by the sick company within a period of 30 days from the date of its receipt.
However, if the scheme is not approved by the creditors, the company administrator shall submit a report to the Tribunal within 15 days, and the Tribunal shall order for the winding up of the sick company. On passing of an order, the Tribunal shall conduct the proceedings for winding up of the sick company in accordance with the provisions of Chapter XX.

The Insolvency and Bankruptcy Act 2016:
A notification issued by Ministry of Corporate Affairs notified Section 255 of the Insolvency and Bankruptcy Code, 2016. By virtue of notification of Section 255 of Insolvency and Bankruptcy Code, 2016; the Companies Act, 2013, stands amended in accordance with Schedule XI of the IBC 2016 with effect from 15thNovember 2016.

By publication of Notification, the Central Government appoints the 15th November, 2016 as the date on which the provisions of the section 255 of the Insolvency and Bankruptcy Code, 2016 shall come into force. Section 255 of the Insolvency and Bankruptcy Code, 2016 read as –“The Companies Act, 2013 shall be amended in the manner specified in the Eleventh Schedule[32] of the Insolvency and Bankruptcy Code, 2016.”

The Sick Industrial Companies (Special Provisions) Repeal Act, 2003 has also been notified as repealed with effect from 01 December 2016. Therefore, all proceedings pending before the BIFR and the AAIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 stand abated from that date. Any company with respect to which such proceedings are pending may make a reference to the appropriate adjudicating authority under the Code within 180 days from 01 December 2016.

Key Features:
The following are the key features of the code, 2016:
  1. Insolvency Resolution:
    The Code outlines separate insolvency resolution processes for individuals, companies and partnership firms. The process may be initiated by either the debtor or the creditors. A maximum time limit, for completion of the insolvency resolution process, has been set for corporate and individuals.

    For companies, the process will have to be completed in 180 days, which may be extended by 90 days, if a majority of the creditors agree. For startups, small companies and other companies with asset less than Rs. 1 crore, resolution process would be completed within 90 days of initiation of request which may be extended by 45 days.[33
     
  2. Insolvency regulator:
    The Code establishes the Insolvency and Bankruptcy Board of India, to oversee the insolvency proceedings in the country and regulate the entities registered under it. The Board will have 10 members, including representatives from the Ministries of Finance and Law, and the Reserve Bank of India.[34]
     
  3. Insolvency professionals:
    The insolvency process will be managed by licensed professionals. These professionals will also control the assets of the debtor during the insolvency process.[35]
     
  4. Bankruptcy and Insolvency Adjudicator:
    The Code proposes two separate tribunals to oversee the process of insolvency resolution, for individuals and companies:
    1. the National Company Law Tribunal (NCLT) for Companies and Limited Liability Partnership firms; and
    2. the Debt Recovery Tribunal (DRT) for individuals and partnerships

Procedure:
A plea for insolvency is submitted to the adjudicating authority NCLT by financial or operation creditors or the corporate debtor itself. The maximum time allowed to either accept or reject the plea is 14 days. If the plea is accepted, the tribunal has to appoint an Insolvency Resolution Professional (IRP) to draft a resolution plan within 180 days which is also extendable by 90 days. Following which the Corporate Insolvency Resolution process is initiated by the court.

For the said period, the board of directors of the company stands suspended, and the promoters do not have a say in the management of the company. The IRP, if required, can seek the support of the company’s management for day-to-day operations. if the IRP fails in reviving the company the liquidation process is initiated.[36]

The Bill prohibits certain persons from submitting a resolution plan in case of defaults. These include:
  1. willful defaulters, promoters or management of the company if it has an outstanding non-performing debt for over a year,
  2. Disqualified directors, among others.
Further, it bars the sale of property of a defaulter to such persons during liquidation.[37]

Conclusion
One of the adverse trends observable in the corporate private sector of India is the growing incidence of sickness. It is causing considerable concern to planners and policymakers. It is also putting a severe strain on the economic system, particularly on the banks. Of course, sickness is not a special problem of India. It is, undoubtedly, a global phenomenon. Even in industrially advanced countries there are numerous cases of bankruptcy or liquidation.

These sick units are nursed back to health through merg­ers, amalgamations, takeovers, purchase of assets, or outright nationalization. When a company is having trouble making payments on its debt, it will often consolidate and adjust the terms of the debt in a debt restructuring, creating a way to pay off bond holders.

In this regard Government laid down in the guidelines issued on October 1981 which were subsequently modi­fied in February 1982 for guidance of administra­tive ministries of the Central Government, State Governments and financial institutions. There was a need for a law, which can timely detect the sickness and take appropriate corrective measures.

To provide for this, Sick Industrial Companies (special provision) act, 1985 i.e. SICA was enacted which was further amended by the Companies Act in the year of 2013 according to the demand of the time. And finally was repealed along with the omission of related sections from the Companies Act in the year 2016 by the Insolvency and Bankruptcy Code.

Suggestions:
The Indian Legal Framework has gone through various amendments and introduction of new laws regarding the regulation of Sick Industries. These changes created quite turmoil and confusion, and also resulted in a huge pile of ineffective legislations.

But in the recent years a new and uniform law has been enacted by the Parliament which has rendered all the past statutes as repealed. The new Code aims to be a cogent, sufficient and efficient single legislation for the regulation of Sick Industries.

At the very outset, the Insolvency and Bankruptcy Act of 2016 seems to be quite effective and better, as compared to the previous legislations. The aim behind introducing the law was to create a uniform law and remove the ambiguities created by the number of laws. The most promising provision of the Act is that it deals with insolvency of individuals, companies and firms differently and provides for different procedures for each of these.

But the problem lies in the fact that, when laws are made, they are always made perfect according to the concerned time in which they were enacted, but with the passage of time, its effect starts to fade. It is because of the changes brought in the society by the time. With every new introduction of technology or any other process or instruments, a new problem is also created for the law to solve. Therefore, regular scrutiny of laws is a must. The laws, especially regarding corporate affairs, must be checked at regular bases. And, with the introduction of new techniques, law should be amended too.

Along with this, there should always be single law on a single subject to avoid ambiguities and confusion. It has been proved in the past also, that a single law on a single subject gives better results than a bulk of legislation available on a single subject matter. More the words, more the confusion. Because of our habit of enacted so many laws, Indian law is considered to be a lawyer’s paradise, which is not an appreciated thing. So the concept of ‘Single Legislation’ must be promoted.

List of Abbreviations:
  1. % - Percentage
  2. & - And
  3. .com – Commercial
  4. .edu -Education
  5. .org – Organization
  6. AAIFR - Appellate authority for industrial and financial reconstruction
  7. BIFR - Board for industrial and financial reconstruction
  8. Dr – Doctor
  9. DRT – Debt Recovery Tribunal
  10. Govt – Government
  11. Http – Hyper Text Transfer Protocol
  12. IIBI - Industrial Investment Bank of India
  13. IRBI - Industrial Reconstruction Bank of India
  14. IRP - Insolvency Resolution Professional
  15. NCLT – National Company Law Tribunal
  16. Rs. – Rupees
  17. SICA – Sick Industries Company Act
  18. SIDF - Small Industries Development Fund
  19. SSI – Small Scale Industry
  20. www – World Wide Web
Bibliography
Statutes Referred:
  1. SICA Amendment Act, 1994
  2. Sick Industrial Companies (Special Provisions) Act, 1985
  3. Sick Industrial Companies (Special Provisions) Repeal Act, 2003
  4. The Companies Act, 2013
  5. Insolvency and Bankruptcy Code, 2016
  6. Income-tax Act 1961

Websites Referred:
  1. http://indiamicrofinance.com/revival-and-rehabilitation-of-companies.html at 7:56 PM in Meerut on 12-10-17
  2. https://www.taxmanagementindia.com/visitor/detail_manual.asp?ID=64 at 7:59 PM in Meerut on 12-10-17
  3. www.lexvidhi.com 8:23 PM in Meerut on 12-10-17
  4. https://aishmghrana.me/2014/02/07/revival-and-rehabilitation-of-sick-companies at 8:39 PM in Meerut on 12-10-17
  5. https://www.icsi.edu/portals/70/14092013LUD1.pdf at 8:40 PM in Meerut on 12-10-17
  6. https://www.slideshare.net/pkvijay/revival-amp-rehabilitation-of-sick-companies at 8:40 PM in Meerut on 12-10-17
  7. mca.gov.in/SearchableActs/Section261.htm at 8:41 PM in Meerut on 12-10-17
  8. http://www.investopedia.com/terms/s/sick-industrial-companies-act-sica.asp at 8:43 PM in Meerut on 12-10-17
  9. https://en.wikipedia.org/wiki/Industrial_sickness at 8:55 PM in Meerut on 12-10-17
  10. www.economicsdiscussion.net/india/industrial-sickness/industrial-sickness.../12903 at 8:56 PM in Meerut on 12-10-17
  11. www.oiirj.org/oiirj/sept2017-special-issue(02)/14.pdf at 9:15 PM in Meerut on 12-10-17
  12. https://books.google.co.in/books?isbn=8122414311 at 9:25 PM in Meerut on 12-10-17
  13. Restructuring http://www.investopedia.com/terms/r/restructuring.asp#ixzz4vJIWkjPj at 9:31 in Meerut on 12-10-17
  14. https://www.businesstoday.in/latest/trends/breaking-down-bankruptcy-what-are-the-steps-involved/story/271770.html
  15. PRS | Bill Track | The Insolvency and Bankruptcy Code (Amendment) Bill, 2017". www.prsindia.org. Retrieved 20 February 2018
Books Referred
  1. IICA, Corporate Governance, 15th Edition, Indian Institute of Corporate Affairs
  2. Sharma Geetanjali, Shikha Neeti, Corporate Governance in India: Principles and Policies, CENGAGE
  3. Fernando A.C., Corporate Governance: Principles, Policies and Practices, 2nd Edition, Pearson
End-Notes:
  1. https://en.wikipedia.org/wiki/Industrial_sickness
  2. www.economicsdiscussion.net/india/industrial-sickness/industrial-sickness.../12903
  3. www.economicsdiscussion.net/india/industrial-sickness/industrial-sickness.../12903
  4. www.economicsdiscussion.net/india/industrial-sickness/industrial-sickness.../12903
  5. Ibid
  6. Sick Industrial Companies Act (SICA) in 1985
  7. www.oiirj.org/oiirj/sept2017-special-issue(02)/14.pdf
  8. www.economicsdiscussion.net/india/industrial-sickness/industrial-sickness.../12903
  9. The FICCI study entitled ‘Industrial Sickness — Dimensions and Perspectives’
  10. www.economicsdiscussion.net/india/industrial-sickness/industrial-sickness.../12903
  11. https://www.taxmanagementindia.com/visitor/detail_manual.asp?ID=64
  12. https://www.taxmanagementindia.com/visitor/detail_manual.asp?ID=64
  13. https://en.wikipedia.org/wiki/Industrial_sickness
  14. www.economicsdiscussion.net/india/industrial-sickness/industrial-sickness.../12903
  15. Restructuring http://www.investopedia.com/terms/r/restructuring.asp#ixzz4vJIWkjPj
  16. Income-tax Act 1961
  17. https://www.slideshare.net/pkvijay/revival-amp-rehabilitation-of-sick-companies
  18. Ibid.
  19. Ibid.
  20. http://www.investopedia.com/terms/s/sick-industrial-companies-act-sica.asp
  21. Ibid.
  22. Ibid
  23. Ibid.
  24. Ibid.
  25. www.oiirj.org/oiirj/sept2017-special-issue(02)/14.pdf
  26. https://www.icsi.edu/portals/70/14092013LUD1.pdf
  27. https://www.icsi.edu/portals/70/14092013LUD1.pdf
  28. Omitted by Insolvency and Bankrupcy Code 2016
  29. The interim administrator shall appoint a committee of creditors with such number of members as he may determine, but not exceeding seven, and as far as possible a representative each of every class of creditors should be
  30. The company administrator shall prepare or cause to be prepared a scheme of revival and rehabilitation of the sick
  31. 253 to 269— [total 17 Sections]-CHAPTER XIX – REVIVAL AND REHABILITATION OF SICK COMPANIES –OMITTED Note – The Sick Industrial Companies (Special Provisions) Act, ___ was proposed to be omitted by this chapter, but never came into force. Now, this chapter omitted by IBC2-16 repeals the SICA with effect from 15 Nov 2016
  32. India Overhauls Century-Old Bankruptcy Laws in Win for Modi", Bloomberg, 11 May 2016
  33. Legislative Brief of the Code" (PDF). PRS India. Retrieved 18 August 2016.
  34. Ibid.
  35. NCLT okays first insolvency resolution scheme under IBC", Live Mint, 16 August 2017;
    https://www.businesstoday.in/latest/trends/breaking-down-bankruptcy-what-are-the-steps-involved/story/271770.html
  36. PRS | Bill Track | The Insolvency and Bankruptcy Code (Amendment) Bill, 2017". www.prsindia.org. Retrieved 20 February 2018

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