Sections Particulars
Chapter I Preliminary
1 Short title, extent, commencement and application
(1) This Act may be called the Sick Industrial Companies (Special Provisions) Act, 1985. (2) It extends to the whole of India. (3) It shall come into force on ...
2 Declaration
It is hereby declared that this Act is for giving effect to the policy of the State towards securing the principles specified in clauses (b) and (c) of articl...
3 Definitions
(1) In this Act, unless the context otherwise requires- (a) "appellate authority" means the appellate authority for industrial and financial reconstruction con...
Chapter II Board And Appellate Authority For Industrial And Financial Reconstruction
4 Establishment of Board
(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established a Board to be known as the "Board for Indus...
5 Constitution of appellate authority
(1) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, an appellate authority to be called the "...
6 Term of office, conditions of service, etc. of Chairman and other members
(1) Before appointing any person as the Chairman or other member, the Central Government shall satisfy itself that the person does not and will not, have any ...
7 Removal of members from office in certain circumstances
(1) The Central Government may remove from office any member, who- (a) has been adjudged as insolvent, or (b) has been convicted of an offence which, in the o...
8 Secretary, officers and other employees of Board or appellate authority
(1) The Central Government shall appoint a Secretary to the Board and a Secretary (by whatever name called) to the appellate authority to exercise and perform...
9 Salaries, etc. be defrayed out of the Consolidated Fund of India
The salaries and allowances payable to the members and the administrative expenses, including salaries, allowances and pension, payable to or in respect of th...
10 Vacancies, etc. not to invalidate proceedings of Board and appellate authority
No act or proceeding of the Board, or, as the case may be, the appellate authority shall be questioned on the ground merely of the existence of any vacancy or...
11 Members and staff of Board and appellate authority to be public servants
The Chairman and other members and the officers and other employees of the Board and the appellate authority shall be deemed to be public servants within the ...
12 Constitution of Benches of Board or appellate authority
(1) The jurisdiction, powers and authority of the Board or the appellate authority may be exercised by Benches thereof. (2) The Benches shall be constituted by...
13 Procedure of Board and appellate authority
(1) Subject to the provisions of this Act, the Board or, as the case may be, the appellate authority, shall have powers to regulate- (a) the procedure and cond...
14 Proceedings before Board or appellate authority to be judicial proceedings
The Board or the appellate authority shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1...
Chapter III References, Inquiries And Schemes
15 Reference to Board
(1) When an industrial company has become a sick industrial company, the Board of Directors of the company, shall, within sixty days from the date of finaliza...
16 Inquiry into working of sick industrial companies
(1) The Board may make such inquiry as it may deem fit for determining whether any industrial company has become a sick industrial company- (a) upon receipt o...
17 Powers of Board to make suitable order on the completion of inquiry
(1) If after making an inquiry under section 16, the Board is satisfied that a company has become a sick industrial company, the Board shall, after considerin...
18 Preparation and sanction of schemes
(1) Where an order is made under sub-section (3) of section 17 in relation to any sick industrial company, the operating agency specified in the order shall p...
19 Rehabilitation by giving financial assistance
(1) Where the scheme relates to preventive, ameliorative, remedial and other measures with respect to any sick industrial company, the scheme may provide for ...
19A Arrangement for continuing operations, etc. during inquiry
(1) At any time before completion of the inquiry under section 16, the sick industrial company or the Central Government or the Reserve Bank or a State Gover...
20 Winding up of sick industrial company
25[(1) Where the Board, after making inquiry under section 16 and after consideration of all the relevant facts and circumstances and after giving an opportun...
21 Operating agency to prepare complete inventory, etc.
Where 11[for the proper discharge of the functions of the Board under this Act] the circumstances so require, the Board may, through any operating agency, cau...
22 Suspension of legal proceedings, contracts, etc.
(1) Where in respect of an industrial company, an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consi...
22A Direction not to dispose of assets
The Board may, if it is of opinion that any direction is necessary in the interest of the sick industrial company or creditors or shareholders or in the publ...
Chapter IV Proceedings In Case Of Potentially Sick Industrial Companies, Misfeasance Proceedings, Appeals And Miscellaneous
23 Loss of fifty per cent net worth by industrial companies
(1) If the accumulated losses of an industrial company, as at the end of any financial year (hereinafter referred to as the relevant financial year) have resu...
23A Proceedings on report, etc. of loss of fifty per cent net worth
(1) Without prejudice to the provisions of clause (a) of sub-section (1) of section 23, the Central Government or the Reserve Bank or a State Government or a...
23B Power of Board to call for periodic information
On receipt of a report under sub-clause (i) of clause (a) of sub-section (1) of section 23 or under sub-section (1) of section 23A or upon information or its...
24 Misfeasance proceedings
(1) If, in the course of scrutiny or implementation of any scheme or proposal, it appears to the Board that any person who has taken part in the promotion, fo...
25 Appeal
(1) Any person aggrieved by an order of the Board made under this Act may, within forty-five days from the date on which a copy of the order is issued to him,...
26 Bar of jurisdiction
No order passed or proposal made under this Act shall be appealable except as provided therein and no civil court shall have jurisdiction in respect of any ma...
27 Delegation of powers
The Board may, by general or special order, delegate, subject to such conditions and limitations, if any, as may be specified in the order, to any member or S...
28 Returns and information
(1) The Board shall furnish from time to time to the Central Government such returns as the Central Government may require. (2) The Board may, for the purpose ...
29 Power to seek the assistance of Chief Metropolitan Magistrate and District Magistrate
(1) The Board or any operating agency, on being directed by the board, may, in order to take into custody or under its control all property, effects and actio...
30 Protection of action taken in good faith
No suit or other legal proceeding shall lie against the Board or the appellate authority, or the Chairman or any other member, officer or other employee of th...
31 Saving of pending proceedings
Where a receiver or an official liquidator has been appointed in any proceeding pending immediately before the commencement of this Act, in any High Court for...
32 Effect of the Act on other laws
(1) The provisions of this Act and of any rules or schemes made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any ...
33 Penalty for certain offences
(1) Whoever violates the provisions of this Act or any scheme, or any order of the Board, or the appellate authority and whoever makes a false statement or gi...
34 Offences by companies
(1) Where any offence, punishable under this Act has been committed by a company, every person who, at the time the offence was committed was in charge of, an...
35 Power to remove difficulties
If any difficulty arises in giving effect to the provisions of this Act or the rules, schemes or orders made thereunder, the Central Government may, by notifi...
36 Power to make rules
(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the general...
Schedule Declaration Of Fidelity And Secrecy
[Sections 6(8) and 8(3)] I, ..........................., do hereby declare that I will faithfully, truly and to the best of my skills and ability, execute and...
Bifr (Conditions Of Service Of Secretary & Other Officers And Employees) Rules, 1987
1 Short title and commencement
(1) These rules may be called the Board for Industrial and Financial Reconstruction (Conditions of Service of the Secretary and Other Officers and Employees) ...
2 Definitions
In these rules, unless the context otherwise requires- (a) "Board" means the Board for Industrial and Financial Reconstruction; (b) "Secretary" means the Secre...
3 Pay of Secretary
The Secretary shall receive pay as admissible to an Additional Secretary to Government of India or the pay applicable to the office if he is on deputation to ...
4 Other staff of the Board
The nature and categories of other officers and employees of the Board and the scales of pay thereof shall be as specified in the Schedule appended to these r...
5 Conditions of service
The conditions of service of Secretary and other officers and employees of the Board in the matter of pay, allowances, leave, joining time, pay, provident fun...
Bifr (Financial And Administrative Powers) Rules, 1987
1 Short title and commencement
(1) These rules may be called the Board for Industrial and Financial Reconstruction (Financial and Administrative Powers) Rules, 1987. (2) They shall come into...
2 Definitions
In these rules, unless the context otherwise requires,- (a) "Act" means the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (b) "Board" m...
3 Powers of the Chairman and the Secretary
(1) The Chairman shall have the same powers as are conferred on a Department of the Central Government in respect of the Delegation of Financial Powers Rules,...
Bifr (Salaries & Allowances & Conditions Of Service Of Chairman And Other Members) Rules, 1987
1 Short title and commencement
(1) These rules may be called the Board for Industrial and Financial Reconstruction (Salaries and Allowances and Conditions of Service of Chairman and other M...
2 Definitions
In these rules, unless the context otherwise requires- (a) "Act" means the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (b) "Board" me...
3 Pay
(1) The Chairman shall receive pay as admissible to a Judge of a High Court. (2) A member shall receive pay as admissible to the Secretary to the Government o...
4 Dearness allowance and city compensatory allowance
(1) The Chairman shall receive dearness allowance and city compensatory allowance at the rate admissible to a Judge of the Delhi High Court. (2) A member shal...
5 Leave
(1) Person, on appointment in the Board as Chairman or a member shall be entitled to have leave as follows: (i) Earned leave at the rate of thirty days ...
6 Leave sanctioning authority
The Chairman shall be authority competent to sanction leave to a member and the President of India shall be the authority competent to sanction leave to the C...
7 Provident fund
The Chairman or a member shall be entitled to subscribe to the General Provident Fund at his option and in case of his so opting, shall be governed by the pro...
8 Traveling allowances
(1) The Chairman while on tour or on transfer (including the journey undertaken to join the Board or on the expiry of his term with Board to proceed to his ho...
9 Leave travel concession
(1) The Chairman shall be entitled to leave travel concession at the same rates and at the same scales as are applicable to a Judge of the Delhi High Court. (...
10 Accommodation
(1) Every person appointed to the Board as a Chairman or a member shall be eligible, subject to availability, to the use of official residence from the genera...
11 Facility of conveyance
(1) The Chairman shall be entitled to a staff car and one hundred and fifty liters of petrol every month or actual consumption of petrol per month whichever i...
12 Facilities for medical treatment
The Chairman or other members shall be entitled to medical treatment and hospital facilities as provided in the Contributory Health Services Scheme Rules, 195...
13 Residuary provision
Matter relating to the conditions of service of the Chairman or other members with respect to which no express provision has been made in these rules shall be...
14 Powers to relax
The Central Government shall have power to relax the provisions of any of these rules in respect of any class or categories of persons. ...
Bifr (Secretary's Powers And Duties) Rules, 1987
1 Short title and commencement
(1) These rules may be called the Board for Industrial and Financial Reconstruction (Secretary's Powers and Duties) Rules, 1987. (2) They shall come into force...
2 Definitions
In these rules, unless the context otherwise requires:- (a) "Act" means the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (b) "Bench" m...
3 General
(1) The Secretary shall be the principal officer of the Board who shall exercise his power and perform his duties under the control of the Chairman. (2) The B...
4 Additional powers and duties of the Secretary
(1) In addition to his powers and duties specified in rule 3, the Secretary shall have the following additional powers and perform the following duties, namel...
5 Powers exercisable under these rules to be in addition to other powers of the Secretary
(1) The powers exercisable and duties to be performed by the Secretary under these rules shall be in addition to those prescribed under any other rules as hav...
Aaifr (Conditions Of Service Of The Secretary And Other Officers And Employees) Rules, 1989
1 Short title and commencement
(i) These rules may be called the appellate authority for Industrial and Financial Reconstruction (Conditions of Service of the Secretary and other Officers a...
2 Definitions
In these rules, unless the context otherwise requires: (a) "Appellate authority" means the appellate authority for Industrial and Financial Reconstruction; (b)...
3 Pay of Secretary
The Secretary shall receive pay as admissible to an Addl. Secretary to the Government of India or where an officer of the government is appointed on deputatio...
4 Other staff of the appellate authority
The nature and categories of other officers and employees of the appellate authority and the scales of pay thereof shall be as specified in the schedule appen...
5 Conditions of service
The conditions of service of the Secretary and other officers and employees of the appellate authority in the matter of pay, allowances, leave, joining time, ...
Aaifr (Secretary's Powers And Duties) Rules, 1988
1 Short title and commencement
(i) These rules may be called the Appellate Authority for Industrial and Financial Reconstruction (Secretary's Powers and Duties) Rules, 1988. (ii) They shall...
2 Definitions
In these rules, unless the context otherwise requires,- (a) "Act" means the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (b) "Bench" m...
3 General
(1) The Secretary shall be principal officer of the appellate Authority who shall exercise his powers and perform his duties under the control of the Chairman...
4 Additional powers and duties of the Secretary
(1) In addition to his powers and duties specified in rule 3, the Secretary shall have the following additional powers and perform the following duties, namel...
5 Powers exercisable under these rules to be in addition to other powers of the Secretary
(1) The powers exercisable and duties to be performed by the Secretary under these rules shall be in addition to those prescribed under any other rules as hav...
Aaifr (Financial And Administrative Powers) Rules, 1987
1 Short title and commencement
(1) These rules may be called the Appellate Authority for Industrial and Financial Reconstruction (Financial and Administrative Powers) Rules, 1987. (2) They ...
2 Definitions
In these rules, unless the context otherwise requires,- (a) "Act" means the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (b) "Appellat...
3 Powers of the Chairman and the Secretary
(1) The Chairman shall have the same powers as are conferred on a Department of the Central Government in respect of the Delegation of Financial Powers Rules,...
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