Reference to Board, BIFR, SICA

The Sick Industrial Companies (Special Provisions) Act, 1985

Section 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 finalisation
 of the duly audited accounts of the company for the financial year
 as at the end of which the company has become sick industrial
company, make a reference to the Board for determination of the
measures which shall be adopted with respect to the company:

Provided that if the Board of Directors had sufficient reasons
 even before such finalisation to form the opinion that the
company had become a sick industrial company, theBoard of
 Directors shall, within sixty days after it has formed such
 opinion, make a reference to the board for the determination
of the measures which shall be adopted with respect to the company:

*[Provide further that no reference shall be made to the Board
 for Industrial and Financial Reconstruction after the commencement
 of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002, where financial assets
 have been acquired by any Securitisation company or reconstruction
company under sub-section (1) of section 5 of that Act:

Provided also that on or after the commencement of the Securitisation
 and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002, where a reference is pending before the Board for
 Industrial and Financial Reconstruction, such reference shall abate
if the secured creditors, representing not less than three-fourth
in value of the amount outstanding against financial assistance
disbursed to the borrower of such secured creditors, have taken
any measures to recover their secured debt under sub-section (4)
                                     of section 13 of that Act.]

*Inserted by Act 54 of 2002, Section 41 and Sch. (w.e.f. 21/o6/2002)