(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 date1as 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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1. Came into force on 12-1-1987 (except sections 15 to 34), vide G.S.R. 24 (E), dated 12th January, 1987 and sections 15 to 34 came into force on 15-5-1987, vide S.O. 444 (E), dated 28th April, 1987.
Section 2 - Declaration
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.
Section 3 - Definitions
(1) In this Act, unless thecontext otherwise requires,--
(a) "Appellate Authority" means theAppellate Authority for Industrial and Financial Reconstruction constitutedunder section 5;
(b) "Board" means the Board forIndustrial and Financial Reconstruction established under section 4;
(c) "Chairman" means the Chairman of theBoard, or as the case may be, the Appellate Authority;
(d) "Company" means a company as definedin section 3 of the Companies Act, 1956 (1 of 1956), 1 [***];
2 [(da) "date of finalisation of the duly auditedaccounts" means the date on which the audited accounts of the company areadopted at the annual general meeting of the company;]
(e) "industrial company" means a companywhich owns one or moreindustrial undertakings;
(f) "industrial undertaking" means anyundertaking pertaining to a scheduled industry carried on in one or morefactories by any company but does not include--
(i) an ancillary industrial undertaking as definedin clause (aa) of section 3 of the Industries (Development and Regulation) Act,1951 (65 of 1951); and
(ii) a small scale industrial undertaking asdefined in clause (j) of the aforesaid section 3;
(g) "Member" means a Member of the Boardor, as the case may be, the Appellate Authority and includes the Chairmanthereof;
2 [(ga) "net worth" means the sum total of thepaid-up capital and free reserves.
Explanation.--For the purposes of thisclause, "free reserves" means all reserves credited out of theprofits and share premium account but does not include reserves credited out ofre-evalutation of assets, write back of depreciation provisions andamalgamation;]
(h) "notification" means a notificationpublished in the Official Gazette;
3 [(i) "operating agency" means any public financialinstitution, State level institution, scheduled bank or any other person as maybe specified by general or special order as its agency by the Board;]
(j) "prescribed" means prescribed byrules made under this Act;
4 [***]
(l) "Reserve Bank" means the Reserve Bankof India constituted under section 3 of the Reserve Bank of India Act, 1934 (2of 1934);
(m) "scheduled bank" means a bank for thetime being included in the Second Schedule to the Reserve Bank of India Act, 1934(2 of 1934);
(n) "scheduled industry" means any of theindustries specified for the time being in the First Schedule to the Industries(Development and Regulation) Act, 1951 (65 of 1951);
5 [(o) "sick industrial company" means anindustrial 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 exceedingits entire net worth.
Explanation.--For the removal ofdoubts, it is hereby declared that an industrial company existing immediatelybefore the commencement6 of the Sick Industrial Companies (Special Provisions)Amendment Act, 1993, registered for not less than five years and having at theend of any financial year accumulated losses equal to or exceeding its entirenet worth, shall be deemed to be a sick industrial company;]
(p) "State level institution" means anyof the following institutions, namely:--
(i) State Financial Corporations established undersection 3 or section 3A and institutions notified under section 46 of the StateFinancial Corporations Act, 1951 (63 of 1951);
(ii) State industrial development corporationsregistered under the Companies Act, 1956 (1 of 1956);
(iii) Such other institutions, being companies andnot being public financial institutions, engaged in the development orfinancing of industrial undertakings, as the Central Government may, bynotification, specify:
Provided that no institution shall be so specifiedunless not less than fifty-one per cent, of the paid-up share capital thereofis held by any State Government or Governments or by any institution orinstitutions mentioned in sub-clauses (i) and (ii) or partly by one or morepublic 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 definedin this Act shall have the meanings, if any, respectively assigned to them inthe Companies Act, 1956 (1 of 1956).
(b) Words and expressions used but not definedeither in this Act or in the Companies Act, 1956 (1 of 1956), shall have themeanings, if any, respectively assigned to them in the Industries (Developmentand Regulation) Act, 1951 (65 of 1951).
(3) Any reference in this Act to any otherenactment or any provision thereof, shall, in relation to an area in which suchenactment or such provision is not in force, be construed as a reference to thecorresponding law or the relevant provision of the corresponding law, if any,in force in that area.
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1. The words and figures ", but does notinclude a Government Company as defined in section 617 of that Act"omitted by Act 57 of 1991, sec. 2 (w.e.f. 28-12-1991).
2.Inserted by Act 12 of 1994, sec. 2 (w.e.f. 1-2-1994).
3.Substituted by Act 12 of 1994, sec. 2, for cluse (i) (w.e.f. 1-2-1994).
4. Clause (k) omitted by Act 12 of 1994, sec. 2(w.e.f. 1-2-1994).
5.Substituted by Act 12 of 1994, sec. 2, for clause (o)(w.e.f. 1-2-1994).
6. 1st February, 1994.