https://www.taxtmi.com/caselaws?id=213388 A reference under the Sick Industrial Companies (Special Provisions) Act, 1985 triggers a mandatory inquiry under section 16 to determine whether the company is sick. The Board must conduct that inquiry itself or through an operating agency, and if it finds no case, it must record that conclusion before dropping the proceedings. A pre-existing investigative audit report cannot replace the statutory inquiry, and rejection cannot rest merely on alleged unreliability of accounts or non-response to that report. The appellate authority must also independently apply the statutory process. The reference rejection was therefore unsustainable, and the matter was remitted for a fresh inquiry on sickness in accordance with law. en-us Tue, 08 Feb 2011 00:00:00 +0530 Thu, 07 Feb 2013 16:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213388 A reference under the Sick Industrial Companies (Special Provisions) Act, 1985 triggers a mandatory inquiry under section 16 to determine whether the company is sick. The Board must conduct that inquiry itself or through an operating agency, and if it finds no case, it must record that conclusion before dropping the proceedings. A pre-existing investigative audit report cannot replace the statutory inquiry, and rejection cannot rest merely on alleged unreliability of accounts or non-response to that report. The appellate authority must also independently apply the statutory process. The reference rejection was therefore unsustainable, and the matter was remitted for a fresh inquiry on sickness in accordance with law. Case-Laws Companies Law Tue, 08 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213388