Determination of sickness: secured creditors may seek Tribunal declaration and obtain interim stay of enforcement proceedings. Determination of sick company status arises where secured creditors holding fifty per cent or more of outstanding debt demand payment and the company fails to pay, secure, or compound within thirty days; a secured creditor may apply to the Tribunal, which must determine within sixty days whether the company is sick after notice and opportunity to reply. The applicant may seek an interim stay of winding up, enforcement, or appointment of a receiver, and the Tribunal may grant interim relief operative for one hundred and twenty days. If found sick, the Tribunal will decide practicability of repayment and may grant time to repay subject to conditions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Determination of sickness: secured creditors may seek Tribunal declaration and obtain interim stay of enforcement proceedings.
Determination of sick company status arises where secured creditors holding fifty per cent or more of outstanding debt demand payment and the company fails to pay, secure, or compound within thirty days; a secured creditor may apply to the Tribunal, which must determine within sixty days whether the company is sick after notice and opportunity to reply. The applicant may seek an interim stay of winding up, enforcement, or appointment of a receiver, and the Tribunal may grant interim relief operative for one hundred and twenty days. If found sick, the Tribunal will decide practicability of repayment and may grant time to repay subject to conditions.
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