Section 424A - Reference to Tribunal.

Sick company reference to Tribunal requires board's revival scheme and auditor certificate of net worth or repayment default.

The Board must refer a sick industrial company to the Tribunal with a revival and rehabilitation scheme and prescribed application; a Government company is excluded unless authorised, and references abate or are precluded where secured creditors with a super-majority have undertaken recovery under securitisation law. The application must include a certificate from a Tribunal-panel auditor stating reasons for the company's net worth being fifty per cent or less or for default in repayment. Other specified public authorities may also refer companies subject to territorial or interest conditions, time limits for reference apply, and the Tribunal's determination is final.