Speaker: Mr Sarthak Ohri, Chartered Accountant

The Sick Industrial Companies (Special Provisions) Act, 1985 ("SICA"), was enacted to make special provisions for the timely detection of sick (and potentially sick) companies owning industrial undertakings. The Board for Industrial and Financial Reconstruction ("BIFR") was formed under the SICA to determine the sickness of such industrial companies and to prescribe measures either for the revival of potentially viable units or the closure of unviable companies.

With the advent of the Insolvency and Bankruptcy Code, 2016, the SICA has been repealed by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 (“Repeal Act”) with effect from December 1, 2016 and the BIFR and the Appellate Authority for Industrial and Financial Reconstruction (“AAIFR”) have been dissolved.

Listen to our podcast to understand how SICA functioned and what went wrong that it had to be repealed.

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