Sick industrial company designation triggers tribunal-led revival procedures or winding up with sanctioned rehabilitation measures. Upon classification as a sick industrial company the board must refer the matter to the tribunal and submit a revival and rehabilitation scheme; the tribunal may appoint an operating agency to investigate and propose measures such as financial reconstruction, management change or amalgamation, and may finalize and sanction the scheme. If the tribunal finds the company unlikely to regain net worth within a reasonable time while meeting obligations, it may order winding up, appoint a liquidator from the operating agency with official liquidator powers, direct sale and distribution of assets, and restrain asset disposal during inquiry or scheme consideration.
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.
Sick industrial company designation triggers tribunal-led revival procedures or winding up with sanctioned rehabilitation measures.
Upon classification as a sick industrial company the board must refer the matter to the tribunal and submit a revival and rehabilitation scheme; the tribunal may appoint an operating agency to investigate and propose measures such as financial reconstruction, management change or amalgamation, and may finalize and sanction the scheme. If the tribunal finds the company unlikely to regain net worth within a reasonable time while meeting obligations, it may order winding up, appoint a liquidator from the operating agency with official liquidator powers, direct sale and distribution of assets, and restrain asset disposal during inquiry or scheme consideration.
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